MYANMA Insurance, together with the Myanmar Agricultural Development Bank, implemented weather index-based crop insurance in Yangon, Bago and Ayeyawady regions.
From the two ways that will be based on the amount of money invested for cultivation by farmers or the loan to farmers by the government, Myanma Insurance selected the pilot project as the primary insurance policy to ensure that farmers’ loans from the State are not lost.
The insurance system is based on rainfall, which is widely implemented in countries that prioritize agriculture, and it is also planned to be paid by the insurance system based on weather index-based insurance. Buying insurance policies may become mandatory for farmers, and the authorities expect them to purchase policies for one to two per cent of the loan provided by the government. If there is an inch or more of rain during the test period, compensation will be provided to the affected farms. A total of 40 per cent will be compensated when the rainfall exceeds an inch during the first set period, while 100 per cent compensation will be provided if rainfall exceeds an inch during the second set period.
The insurance rate will be included in the loan for agricultural expenses, and the premium rate will be only K1,000 per acre. When the amount of rain exceeds the specified inch, the farmers will receive compensation. — TWA/MKKS
