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R
eport of the Miscellaneous, Accident and
Health Insurance Committee

1. Weather Index Insurance For Crops Project 2. Crops Insurance Research

In collaboration with the Office of Insurance Commission As part of the government’s policy to implement the

(OIC), the Bank for Agriculture and Agricultural Cooperatives “Strong Thailand” project by assigning the Fiscal Policy

(BAAC), the Thai Reinsurance Public Co., Ltd., and the Office, Ministry of Finance to carry a study and research

World Bank, the Miscellaneous, Accident and Health on crops insurance for rice and maize, basing on

Insurance Committee, as a central body of insurance weather index with a view to reform risk management
business had completed the feasibility study of weather system of Thai farmers who grow cash crops, particularly

index insurance for crops project as well as the drafting rice and miaze, the Miscellaneous, Accident and Health

of policy and the premiums rating for crops insurance, Insurance Committee participated in the project by

using rainfall and drought indexes (Maize). In carrying joining as member of the Working Committee and have
out the preparation, the Committee took into account the already provided support and took part in the study

purchasing power of the farmers and the increasing project.

costs of production as well as the ability to retain the risks 2.1 The Fiscal Policy Office who is the host agency
by the insurance companies. At present, 7 insurance for developing a national strategic plan for crops insurance

companies have participated in the project. In 2010, the has set up a working group, comprising representatives

total area of land under the insurance project was 60,688 from the Agricultural Promotion Department, the Ministry

Rai in 7 provinces, i.e., Lopburi, Petchabun, Nakhon of Agriculture and Cooperatives, the Irrigation Department,
Sawan, Saraburi, Nakhon Ratchasima, Nan and the Meteorological Department, the Office of Agricultural

Pitsanuloke (15 rainfall measuring stations) and a total of Economics, the Bank for Agriculture and Agricultural
3,194 farmers participated in the project. The total Cooperatives (BAAC), the Office of Insurance Commission

amount of sum-insured was 72,142,823 baht and total (OIC) and the General Insurance Association. This group

premiuwas 6,068,800 Baht. The Committee participated will work together to formulate a strategic plan to develop

in the press conference organized to promote the project crops insurance that is suitable to Thailand, to carry out

and to present partial loss claim payment to 863 farmers, research and study project, to set up information database,

totaling 4,326,451.74 Baht on August 6, 2010 at the to create awareness and understanding, to develop
Nakhon Thai School, Pitsanulike Province. distribution of insurance product through intermediary or
The performance of project showed that there were agent and the expansion of rainfall gauging stations.

several problems and obstacles. The Bank of Agriculture 2.2 The Agricultural Promotion Department is
and Agricultural Cooperatives, therefore, organized a commissioned to carry out a study and research project

seminar to gather views and opinions on the problems on crops insurance for annual rice farming by implementing
and obstacle found in the implementation of this project the virtual crops insurance scheme (no premium or claim

on July 13, 2010 at the Top Land Hotel, Pitsanuloke payments). The Miscellaneous, Accident and Health

Province and on July 29, 2010 at the Sima Thani Hotel, Insurance Committee joined a meeting to prepare staff

Nakhon Ratchasima Province. Moreover, a consultation who were assigned work in the experimental areas

meeting was also organized by the Miscellaneous, between June 16–17, 20110 at the Agricultural Promotion

Accident and Health Insurance Committee and the Department. Representatives of the Committee also

OIC, BAAC and representatives of foreign reinsurers provided supports and went to the crops insurance

(AON) on September 9, 2010 at the Swissotel Le experimental areas to provide knowledge and to sell
Concorde, Bangkok, in order to find ways to enable the virtual insurance product to a sample group of 270

project implementation to continue in a sustainable farmers between July 6-7 and 12-13, 2010 in Khon Kaen
manner. and Utaradit Provinces.
Annual Report 2010 108
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