The Bank for Agriculture and Agricultural Cooperatives (BAAC) has paid the insurance claims of farmers participating in the Rice Insurance Scheme 2020, totalling 370 million baht. The initiative aims to ease damage and mitigate production risks for over 32,000 farmers, covering 310,000 rai of farmland.
Nicha Uaipornrungrat, Executive Vice President, BAAC, revealed: “BAAC has initiated the immunity programme for farmers by deploying insurance as a tool for production risk management and easing possible damage. The annual nationwide rice cultivation insurance scheme for 2020, covering 45.7 million rai, has now run its course. The insurance covers damage caused by eight types of natural disaster, including flooding/heavy rains, drought, storms, cold, hail, fire, wild elephants, and pests/plague.
Claims were made by farmers at district agricultural offices and are processed by the Thai General Insurance Association (according to insurance damage report form Kor Sor 02). The insurance premium payments are considered subject to the agreement within 15 days after complete information is submitted. BAAC then pays the compensation into the farmer’s bank account directly. In 2020, claims were paid on eight occasions, totalling 370.55 million baht and covering 32,000 beneficiaries and 310,000 tracts of farmland.
Once BAAC receives approval of the claim, the compensation is paid to each farmer’s bank account as soon as possible and in time for the next crop. Over 3.4 million farmers, totalling 44.3 million rai, applied for the annual rice cultivation insurance scheme in 2020.
