Myanma Insurance is preparing to conduct joint surveys in five areas, including the Maubin Township in Ayeyawady Region and Shwebo Township in Sagaing Region, Pyay Township in Bago Region, Myingyan Township in Mandalay and Pakokku Township in Magway Region as pilot projects to implement the weather index-based crop insurance system.
To carry out the joint survey, Myanma Insurance is negotiating to get technical assistance from foreign organisations such as Switzerland-based Syngenta Foundation for Sustainable Agriculture-Agricultural Insurance Solutions (SFSA-AIS), which is currently running projects in Asia, said Daw Khin Moe Kywe, Deputy General Manager of Myanma Insurance.
“Myanma Insurance is preparing to sign a Memorandum of Understanding (MoU) with Syngenta Foundation to carry out joint surveys in five areas. Also, we will cooperate with the Meteorology and Hydrology Department and the Agriculture, Livestock and Irrigation Ministry. This system can be executed only after conducting an inspection tour of the project areas,” she maintained.
Crop insurance pays for liabilities, depending on the rate that both parties agreed to when they bought the insurance. To set the premium rating, the insured amount (maximum amount payable) is calculated on risk factors such as the amount of rainfall, moisture content and the speed of the wind, which is measured by satellite, and issued by the Meteorology and Hydrology Department.
The joint survey will include an inspection of the weather conditions in each region, crop varieties, previous climate-related hazards and the number of farmers interested in availing crop insurance, said U Khin Maung Win, General Manager of Myanma Insurance.
“The farmers are keen to avail of the crop insurance system, as it can cover possible losses. The premium rating will depend on the data procured after the joint survey. The liability rate may vary depending on the climate conditions of each regions as the weather index differs in each place,” said U Khin Maung Win.
Although there are two types of crop insurance: yield-based crop insurance and weather index based crop insurance, the yield-based crop insurance resulted in losses in the neighbouring countries of Bangladesh and India. Therefore, we are determined not to adopt yield-based crop insurance, which burdens the government in the agriculture sector.
Myanma Insurance provides services for 29 types of insurance to the public. Fire insurance is mostly purchased, recording 43.65 per cent. It is followed by, comprehensive motor insurance with 33.31 per cent and third party liability insurance, marine and aviation insurance with 15.02 per cent.Life insurance is recorded 6.02 per cent. Myanma Insurance earned Ks61 billion during the 2017-2018 fiscal year.
By May Thet Hnin