Examples of Agricultural Insurance Products

Examples of Agricultural Insurance Products

Examples of Agricultural Insurance Products

Agricultural insurance is made based on the Regulation of the Minister of Agriculture of the Republic of Indonesia Number 40/Permentan/SR.230/7/201. In the regulation, the government provides subsidies to farmers to buy insurance with an allocation from the APBN. This program is run by the Directorate General of Infrastructure and Facilities of the Indonesian Ministry of Agriculture in collaboration with one of the state-owned insurance companies, PT Jasa Asuransi Indonesia or Jacinto. Generally, farmers call this insurance Jasindo agricultural insurance.

Jacinda is the only agricultural insurance provider company in Indonesia that manages insurance claims and applications and farmer premiums. However, Jasindo also has several private insurance products for farmers.

Some examples of agricultural insurance products issued by Jasindo pdf include:

Rice Farming Business Insurance (AUTP)

The first example of an insurance product is rice farming insurance or AUTP. This insurance is an insurance program from the government which is intended for rice farmers. This insurance protects rice farmers from the risk of crop failure due to flooding, disease, drought, and attacks by organisms that damage crops. The form of rice farming insurance can be in physical or digital form (pdf).

Farmers can get this protection at a premium of IDR 180 thousand. However, this agricultural insurance receives a subsidy from the government with an assistance mechanism of 80 percent. So farmers only need to pay Rp. 36 thousand per month.

There are special conditions to get this insurance, namely, farmers must have the status of smallholders or have land with a maximum area of ​​two hectares. In addition, the land must be irrigated land or rainfed land which is located close to a water source.

In the event of a loss, the agricultural insurance compensation payment mechanism is provided for 75 percent of the total damage or more in each plot. So the maximum sum insured that can be claimed is IDR 6 million.

Cattle Business Insurance (AUTS)

The second insurance product is AUTS or Cattle Business Insurance. This insurance program from the government through Jasindo targets cattle breeders. In this case, insurance protects cattle farmers from various losses due to livestock death, disease, accidents, or loss due to theft.

The maximum coverage provided by the insurance company is a maximum of IDR 10 million per cow. The total is a calculation of the insured price minus the proceeds from the sale of meat if the cow is forcibly slaughtered.

Some of the requirements for obtaining livestock business insurance include:

  • The customer is a breeder or breeder and a small-scale farmer.
  • The livestock owned are female cows with a minimum age of 1 year, in good health, and have an identity.
  • The premium cost is Rp. 200 thousand with a government subsidy of 80 percent. So farmers only need to pay Rp. 40 thousand.

Fisherman Farm Insurance

Fisherman’s agricultural insurance is insurance that aims to protect fishermen from the risk of death while fishing or outside of these activities. In this case, the government provides a subsidy of 100 percent of the premium, which is Rp. 175 thousand.

Some of the conditions for getting this insurance include:

  • Have a valid fishing card
  • Have a savings account, if you don’t have a savings account, you can make a statement of your ability to have a savings account
  • Using fishing boats with a maximum size of 10 GT
  • Maximum age 65 years.
By Master James

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