Insurance subsidy scheme for fisherfolk unsuccessful

Several obstacles must be removed before the fishing boat insurance can be properly implemented, say officials

Insurance subsidy scheme for fisherfolk unsuccessful

Insurance News

By Gabriel Olano

The extension of an insurance subsidy program for offshore fishing households in Vietnam has been mostly unsuccessful, according to officials.

Under the insurance program, the government will provide financial support to all enrolled offshore fishing household co-operative members, subsidizing 70% of premiums for fishing boats with 90CV to 400CV engines and 90% for boats above 400CV.

The failure of the program was due to several obstacles that must be removed before proper implementation can take place, said administrators. Two years since the offshore fishing insurance scheme was introduced, only 7,500 households have participated.

The program ended in late 2016, but the government decided to extend it for one more year until December 31, 2017, reports Viet Nam News.

However, many households complained that changes in banks’ lending policies made it difficult for them to take out loans to buy fishing boats. They also wished for more insurers to take part in the program to give them more choices, as well as for more fishing grounds to be covered under the scheme.

Currently, Bao Minh Insurance Corporation is the sole participating insurer.

In response to the fisherfolk’s concerns, Deputy Prime Minister Trịnh Đình Dũng has asked the Ministry of Finance to directly monitor the distribution of policies to project beneficiaries in order to speed up implementation.

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