Govt hopes to introduce farmers’ insurance policy by end of 2017 — Ahmad Shabery
PENDANG: The Agriculture and Agro- based Industry Ministry hopes the proposed insurance scheme to insure farmers against losses from natural disasters will be implemented by the end of next year.
Its minister Datuk Seri Ahmad Shabery Cheek said the study on the insurance policy scheme required in- depth study and it involved various parties.
“I have received the first draft of the study which was executed by Agro Bank but the implementation mechanism needs further refinement before it can be tabled to the Cabinet,” he said.
He was speaking to reporters after a ceremony to present Agro- Food Disaster Relief Aid to Kedah and Perlis agricultural entrepreneurs at the Muda Agricultural Development Authority ( Mada) office in Pendang here, yesterday.
Malaysia he added, was among countries still behind in terms of compensating farmers for catastrophic losses, as compared to several neighbouring countries which have long been implementing the initiative.
He said the government’s constraints in implementing the policy was getting insurance companies to provide natural disaster coverage.
“If the insurance companies are not willing to take the risk, a special Act will have to be enforced and this will have to be agreed upon by all parties, including Bank Negara.
“The question is will the government have to pay the full or partial amount, while the farmers pay the remainder as we have to understand the rural communities are not used to buying insurance plans,” he said.
In fact, he said the government would also have to consider the kind of compensation to be given either in cash or other forms as well as decide on affordable insurance plans for the farmers.
He said the insurance scheme was very important because farmers were regarded as national heroes’ as they ensured constant availability of food supply especially rice which is the nation’s staple food.
Earlier in his speech, Ahmad Shabery said, the ministry hoped to adapt the insurance scheme model introduced in other countries so that farmers could receive immediate aid in the event of a disaster.
He cited that should a farmer’s average rice production be five tonnes per hectare but due to natural disaster production was reduced to four tonnes, then the insurance company would have to pay the loss amount of one tonne.
“Probably they will only need to wait one month to receive the compensation, instead of one year which will further affect their production,” he said.
He said the government had already implemented an insurance scheme for fishermen which had brought great benefits, especially to the fishermen’s families after they have been involved in accidents at sea.
At the ceremony a total of RM2,097,468 was distributed to 1,893 Kedah and Perlis farmers who were affected by floods.
A total of 2,167 agricultural entrepreneurs in the padi, food cultivaton, livestock, aquaculture farming and agro-based industry sectors also received the aid. — Bernama