What principles do insurance enterprises enter into agricultural insurance contracts?

On what principles do insurance enterprises enter into agricultural insurance contracts?

Insurance enterprises enter into agricultural insurance contracts according to the principles specified in Clause 2, Article 12 of the Decree 58/2018/ND-CP as follows:

Responsibilities of insurance enterprises in entering into and implementing agricultural insurance contracts

1. Explain and provide full information related to insurance contracts, rules, terms, and premium schedules to the insurance buyer. Insurance enterprises will only enter into agricultural insurance contracts when the insurance buyer confirms that they clearly understand the contents related to the insurance contract, rules, terms, and agricultural insurance fee schedule.

2. Implement agricultural insurance contracts on the principles of voluntariness, autonomy, and self-responsibility; ensure the principle of many compensating for the few and proactively distribute and share risks through agricultural co-insurance and reinsurance methods.

3. Proactively control risks, prevent and limit losses and prevent and combat insurance fraud according to the provisions of Section 2 Chapter II of this Decree.

4. When an insurance event occurs, promptly send officers to approach the insured object and guide the insured person to take measures to limit losses (if any). Pay necessary and reasonable expenses to limit losses.

5. Organize loss appraisal work to determine the cause and extent of loss publicly and transparently according to agreements in agricultural insurance contracts and legal regulations. In case of index insurance, collect declaration and confirmation from authorities about the insurance event (if agreed in the insurance contract); Organize the work to determine the difference between the actual index and the insured index agreed in the insurance contract.

6. In case it is determined that the loss is subject to compensation liability, appoint an officer to guide the insured person on the records and documents that need to be provided to serve the compensation settlement.

7. Pay full compensation to the insured as agreed in the agricultural insurance contract and legal regulations.

8. Carry out other responsibilities as agreed in the agricultural insurance contract and legal regulations.

Thus, according to the above regulations, insurance enterprises enter into agricultural insurance contracts on the principles of voluntariness, autonomy, and self-responsibility; ensuring the principle of many compensating for the few and proactively dispersing and sharing risks through agricultural co-insurance and reinsurance methods.

When does an agricultural insurance buyer enter into an insurance contract?

Pursuant to Clause 3, Article 13 of Decree 58/2018/ND-CP as follows:

Responsibilities of the insurance buyer and the insured in entering into and implementing an agricultural insurance contract career

1. Guarantee that there is an insurable interest in the subject of insurance according to the provisions of law.

2. Provide complete and truthful information related to the insured object (including cases where the insured object is damaged) to the insurance enterprise.

3. Enter into an agricultural insurance contract after fully understanding the information related to the insurance contract, rules, terms, and premium schedule provided and explained by the insurance company.

4. Proactively control risks, prevent and limit losses and prevent and combat insurance fraud according to the provisions of Section 2 Chapter II of this Decree.

5. Create conditions for insurance businesses to check conditions to ensure safety for insured objects.

6. Timely notify the insurance company about the occurrence of an insurance event; Take measures according to the instructions of the insurance company to limit losses.

7. Coordinate closely with insurance companies in loss assessment to determine the cause and extent of loss and settle compensation.

8. Carry out other responsibilities as agreed in the agricultural insurance contract and legal regulations.

Thus, according to the above regulations, the agricultural insurance buyer enters into an insurance contract after fully understanding the information related to the insurance contract, rules, terms, and premium schedule provided and explained by the insurance enterprise.

How is the compensation amount that the insurance enterprise must pay to the agricultural insured?

The compensation amount that the insurance enterprise must pay to the agricultural insured is determined according to the provisions of Clause 2, Article 9 of Decree 58/2018/ND-CP as follows:

Compensation agricultural insurance

1. When an insurance event occurs, the insurance enterprise shall settle compensation according to the agreement in the agricultural insurance contract and legal regulations.

2. The amount of compensation that the insurance company must pay to the insured is determined on the basis of the market price of the insured object at the time and place of the loss and the actual level of damage, unless otherwise agreed in the insurance contract. In case of index insurance, the insurance company pays compensation to the insured based on the change in the actual index compared to the index agreed in the insurance contract and legal regulations.

3. The compensation amount paid by the insurance company to the insured person does not exceed the insurance amount, unless otherwise agreed in the insurance contract.

Thus, according to the above regulations, the compensation amount that the insurance enterprise must pay to the agricultural insured is determined on the basis of the market price of the insured object at the time and place of the loss and the actual level of damage, unless otherwise agreed in the insurance contract.