Do you need to have agricultural insurance? If your daily life depends on farming, you should consider getting insurance. As is known, agriculture is a type of business that is full of risks. In an instant, farms can suffer losses due to drought, pests, landslides, and prolonged rains.
Fortunately, currently, the Government of Indonesia through the Regulation of the Minister of Agriculture of the Republic of Indonesia Number 40/Permentan/SR.230/7/201, facilitates agricultural insurance as a solution to protect farming businesses.
For more details, the following is the definition of agricultural insurance, types, benefits, premium amounts, how to buy, and how to claim.
What is Agricultural Insurance?
Agricultural insurance is insurance that prevents losses or unwanted things during the farming process. The main form of coverage is compensation due to crop failure.
In other words, when something unwanted occurs, such as a loss due to crop failure, farmers do not need to borrow money from middlemen because the insurance company will compensate for the loss.
Types of Agricultural Insurance
As far as the information that we can gather until this article is written, only Jasindo insurance company has agricultural insurance.
This type of insurance is included in the Jasindo Agri insurance product. This type of insurance is called the Rice Farming Business Insurance (AUTP) which protects farmers from the threat of crop failure as a result of floods, droughts, diseases, and pest attacks.
Agricultural Insurance Benefits and Premiums
Some of the insurance benefits and the amount of premium that you can get when you have this product, namely:
Protection from Crop Failure
The benefit of having agricultural insurance is getting protection from all kinds of risks of financially detrimental crop failures. If the farmer experiences crop failure, the entire capital will be reimbursed by the insurance company.
Huge Compensation Money
The amount of compensation provided by the insurance to farmers who suffered losses is quite large so that farmers can start their business again without the need to borrow capital from other parties.
Government Subsidy for Premium Payment
The price of this type of insurance premium is very cheap because it gets subsidies or assistance from the government. Currently, the payment of agricultural insurance premiums has involved the Directorate General, Provincial Offices, and Regency/City Offices.
For details regarding the premium amount of Jasindo Agri Insurance for Rice Farming Business Insurance (AUTP), namely:
- Premium: IDR 180,000 (government assistance 80 percent of premium to IDR 36,000)
- Coverage: Maximum insured price is IDR 6,000,000 per hectare
- Criteria for farmers: Cultivators or farmers who own a maximum of 2 hectares
- Land criteria: Irrigated land or rainfed land close to water sources
- Compensation: The age of rice has passed 10 days of planting, the age of rice has passed 30 days, the intensity of damage is 75 percent, the area of damage is 75 percent in each plot
