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China to expand agriculture insurance coverage

(Xinhua)
Updated: 2009-02-18 10:10

BEIJING -- China will raise agriculture insurance coverage based on what had been achieved last year, the country's top insurance regulator said here on Tuesday.

More crops, including grain, cotton and oil plants, and more livestock will be covered by agriculture insurance, according to the China Insurance Regulatory Commission (CIRC).

The country will also design and develop more insurance programs for forestry, pigs and rubber.

The commission was also considering setting up an insurance plan against severe natural disasters.

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Agriculture insurance totaling 239.7 billion yuan (US$35.1 billion) with fiscal support was provided to farmers to guard against various risks in 2008, up 113 percent from 2007. More than 97 percent of the insurance programs had subsidies from local governments at different levels.

Of more than 1.8 billion mu of farm land nationwide, more than one fourth, or 532 million mu were covered by insurance in 2008, up 130 percent from a year earlier. Rural households joining insurance increased 80.7 percent year-on-year to 90 million, with insurance premium up 112.5 percent to 11 billion yuan.

"The development of agriculture insurance with fiscal support has enhanced farmers' ability against risks as well as helped after disaster recovery," a CIRC official told Xinhua.

As of 2008, a total of 7 billion yuan compensation went to more than 14 million rural households affected by natural disasters including the magnitude 8.0 earthquake in May and snow storms in early 2008.

China initiated agriculture insurance trials in six provincial-level regions in 2007 in line with government efforts to step up rural development. It has covered all the 31 provinces, autonomous regions and municipalities on the Chinese mainland.