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Agricultural Insurance to Ease Agricultural Business

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Agricultural Insurance to Ease Agricultural Business

Hello Everyone!  Agricultural sector businesses deemed high risk effort against the dynamics of nature and susceptible to pests and diseases that result in a decrease in the production of a result even failed harvest as well as the risk of price fluctuations so that the income of farmers is decreasing.Because of that we need to introduction of agricultural insurance for minimize the risk.

Soo What is agricultural insurance?

Agricutural insurance is insurance who has many goals like this :

  1. Provide protection against threats from ranchers/farmers risk crops or livestock business failed.
  2. Encourage the interest of farmers/ranchers the importance of increased skills and improved management of agricultural businesses.
  3. Reduce the reliance of farmers/ranchers on the capital originating from the other party and help farmers provide cost/cost of production or business capital.
  4. Increase income/success in carrying out farming farmers cultivating/breeders continuousl

Types of Farmers Entered into the Farmers Insurance Category

  1. Insurance for Plants

Plants that can enter into plant insurance are only crops that are food crops, horticulture, and plantations only. This insurance is called Asuransi Usaha Tani Padi (AUTP). AUTP provides guarantees for damage to the insured plant caused by floods, droughts, and attacks the OPT (Organisms Pest plants) in the form of plant pests and diseases of plants.

Terms of indemnity : Age of rice has passed 10 days (10 days after planting / HST). The age of rice has passed 30 days (tabela technology). The damage intensity reaches ≥75% and the extent of damage reaches ≥75% in each natural plot area.

  1. Insurance for Livestock

Livestock businesses that can enter into livestock insurance are only nonruminansia, and monogastrik/pseudoruminant. This insurance is called Asuransi Usaha Ternak Sapi ( AUST ).Risk guaranteed: cows die of disease, accidents, childbirth, and theft.

How to Get this Insurance?

Farmers can register very easily to get this farm insurance. Farmers can start through various data collection that will be done by the District Service or the city.

After the data has been stored in the database of County Government then will be submitted to the provincial government which will be sent to the Ministry of Agriculture through the Directorate General.

After the above processes have been completed and approved then farmers can fill out the registration form as potential insurance users.

If the data are already available and have been verified by the Government so farmers can get started by doing meeting with insurance company.

Socialization About Agricultural Insurance Program

This socialization has several stages to be passed as through a petition to become a prospective member of agricultural insurance and then proceed with the determination and selection of various insurance risks along with payment of premiums.

Issuance of insurance policy will be done after registration and payment of premium received by insurance from farmer. All phases are completed and claims can be made by the farmer after the farmer reports the damage and the loss and receives the approval from the insurer.

While the insurance pay scheme is divided into 2 types, namely:

  1. Swadaya Premium Scheme
  2. Self help : Farmers have to pay full dues and are not assisted by other parties
  3. Partnership: Farmers will be assisted by a partnership company, then the payment will be made in accordance with the agreement that has been determined and agreed by both parties.
  4. Credit: This type will be adjusted to the amount of credit made by farmers. So farmers will only pay according to the amount of credit only.
  5. Premium Scheme with Fund Subsidy from APBN

On this premium payment, the Government has the burden of payment of 80% and 20% is farmer to pay duty. The requirement are :

If the farmer is a farmer peasants then farmers have no private agricultural business lands. Land under cultivation also should not be more than two hectares.

If farmers have private land then farm work no more than two hectares. Is horticulture, gardens, farmers or ranchers on a small scale.

farmers who want to join the insurance must be incorporated into farmer groupsand is an active member within the group. This acceptance will give priority to the farmers who belong to the agriculture sustainable food. If farmers receive aid premiums, then farmers should implement a farm or ranchwith good and earnest.

IAASIndonesia
IAASIndonesia
International Association of Students in Agricultural and Related Sciences (IAAS) is the World Biggest Student Association in The Field of Agriculture and Related Sciences. IAAS was founded in 1957 and started with only 8 member countries.For the last 60 years, IAAS has grown into a big organization with 53 member countries and more than 10,000 active members. IAAS Indonesia was found by Mr. Arif Satria on December 29th 1992. By the year of 2020, IAAS Indonesia has 11 Local Committees across the country with more than 1200 active members.

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