Decision No. 3035/QD-BTC Issuing Rules, Fees Schedule and Insurance Liability Levels for Agricultural Insurance

 

Pursuant to …;

Issuing rules, fee schedules, and liability limits for agricultural insurance

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THE MINISTER OF FINANCE

Pursuant to the Insurance Business Law 2000, the Law Amending and Supplementing Certain Provisions of the Insurance Business Law, and guiding documents;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 315/QD-TTg dated March 1, 2011 of the Prime Minister on implementing pilot agricultural insurance from 2011 to 2013; In accordance with the proposal of the Director of the Insurance Supervision and Management Department,

DECISION:

Clause 4 of Article 6Attached herewith are the Rules, fee schedules, and liability limits for rice crop insurance based on yield index; Rules, fee schedules, and liability limits for livestock insurance; Rules, fee schedules, and liability limits for shrimp/fish insurance to implement Decision No. 315/QD-TTg dated March 1, 2011 of the Prime Minister on implementing pilot agricultural insurance from 2011 to 2013.

Article 2. Insurance companies permitted to implement pilot agricultural insurance shall proactively coordinate with relevant agencies to implement the insurance rules, terms, and fee schedules issued pursuant to this Decision; Develop and uniformly apply insurance contracts, insurance certificates, and agency contracts.

During the implementation of the pilot program, insurance companies permitted by the Ministry of Finance to implement the pilot program must comply with the provisions of Circular No. 121/2011/TT-BTC dated August 17, 2011 of the Ministry of Finance guiding certain provisions of Decision No. 315/QD-TTg dated March 1, 2011 of the Prime Minister on implementing pilot agricultural insurance from 2011 to 2013 and related laws. In case of difficulties or obstacles, timely reflect them to the Ministry of Finance for consideration and resolution.

Article 3. This Decision takes effect from the date of signature.

The Director of the Insurance Supervision and Management Department; The Head of the Office; Heads of relevant units and insurance companies permitted to implement pilot agricultural insurance are responsible for enforcing this Decision./.

 

RULES, FEE SCHEDULES AND LIABILITY LIMITS FOR SHRIMP/FISH INSURANCE

(Issued together with Decision No. 3035/QD-BTC dated December 16, 2011 of the Minister of Finance)

Article 1. General Provisions

1. These rules are established to implement the pilot agricultural insurance according to Decision No. 315/QD-TTg dated March 1, 2011 of the Prime Minister.

2. These rules stipulate the conditions and terms of the shrimp/fish insurance product.

Article 2. Interpretation of Terms

1. Insured party: Is the insured person and/or their authorized representative, approved by the People's Committee of the commune. The representative for the insured may be a commune government official or the head of social organizations in the commune.

2. Insured person: Is a farming household or organization raising commercial shrimp (mud shrimp, whiteleg shrimp) or fish (tra, basa).

3. Insurance company: Is a non-life insurance company permitted to implement pilot agricultural insurance.

4. Cultivation establishment: Is a pond, lake, reservoir, cage, or raft located in communes participating in insurance. The breeding facility must be confirmed by the People's Committee of the commune regarding its location and area/volume.

5. Insured object: Is commercial shrimp (mud shrimp, whiteleg shrimp) or fish (tra, basa) raised at breeding facilities.

6. Disease: White spot disease, yellow head disease, and hepatopancreatic necrosis syndrome (for mud shrimp); white spot disease, yellow head disease, Taura syndrome, and hepatopancreatic necrosis syndrome (for whiteleg shrimp); bacterial kidney disease (for tra, basa). These shrimp/fish diseases are confirmed and announced by competent authorities.

7. Natural Disaster: Typhoon, flood, inundation, drought, severe cold, frost damage, frostbite, saltwater intrusion, tsunami as defined by the Ministry of Agriculture and Rural Development and announced by competent authorities.

8. Insurable event: Is an event where shrimp/fish suffer losses due to disease or natural disasters within the insurance period.

9. Insurance amount: Is a sum of Vietnamese Dong agreed upon by both parties equivalent to the total cost of seedlings and feed up to the 80th day of cultivation for whiteleg shrimp, the 120th day for mud shrimp, and the 182nd day for fish.

10. Compensation amount: Is a sum of Vietnamese Dong that the insurance company must pay to the insured person to compensate for losses suffered by their breeding facilities due to causes within the scope of insurance as specified in these Rules.

11. Deductible rate: Is thirty percent (30%) of the compensation amount for each breeding facility suffering losses due to causes within the scope of insurance that the insured person must bear themselves.

12. Cultivation area: Is the surface area of the breeding facility measured in square meters (m2), excluding the area of settling ponds and waste treatment ponds.

13. Cultivation volume: Is the volume of the breeding facility measured in cubic meters (m3), excluding the volume of settling ponds and waste treatment ponds.

14. Monthly reporting: Is a monthly report according to the model prescribed by the insurance company regarding the density of shrimp (number/m2) or fish (number/m3), size of shrimp/fish, and weight of shrimp/fish.

15. First day of cultivation: Is the day when seedlings are released into the breeding facility.

16. Harvest time: Is the time when shrimp/fish are removed from the breeding facility for consumption or disposal as regulated by law.

Article 3. Commitments and Conditions

1. Commitment of the insurance contract holder

The insurance contract holder commits to providing the insurance company with an accurate and truthful list of insured individuals.

2. Commitment of the insured individual

The insured individual commits to having the right to use the breeding facility and carry out shrimp/fish farming according to the procedures and directly benefit from the insured object.

The insured individual commits to insuring all breeding facilities under their management and use within the same commune territory as stipulated by this Insurance Rule.

3. General conditions for participating in insurance

The insured individual understands that when participating in shrimp/fish farming insurance, they must comply with the following regulations:

a) Adhere strictly to the shrimp/fish farming procedures prescribed by the Ministry of Agriculture and Rural Development and/or local competent authorities;

b) The insured individual must be responsible for submitting monthly declarations to the insurance company through the insurance contract holder or the People's Committee of the commune or insurance agents on the 15th day of each calendar month;

c) Upon discovering disease or epidemics affecting shrimp/fish, the insured individual must take proactive measures to limit losses and report to the insurance company or local government agencies within 48 hours for coordination. In cases of natural disasters leading to mass deaths or total loss of shrimp/fish, the insured individual must immediately report to the insurance company or its agent within 24 hours.

Article 4. Scope of Insurance Coverage

The insured individual will be compensated at the ratio specified in Clause 4, Article 9 of this Insurance Rule for losses caused by the following direct causes:

1. White Spot Syndrome, Yellow Head Disease, Withering and Hepatopancreatic Necrosis in Giant Tiger Shrimp; White Spot Syndrome, Yellow Head Disease, Taura Syndrome, Withering and Hepatopancreatic Necrosis in Whiteleg Shrimp; Bacterial Gill Disease in Tra Catfish and Basa Fish. These shrimp/fish diseases are confirmed and announced by competent authorities.

2. Mass deaths and/or total loss of shrimp/fish due to natural disasters confirmed and announced by competent authorities.

Article 5. Insurance Period

1. For Whiteleg Shrimp, the insurance period is effective from 00:00 on the first day of farming (the day of releasing seedlings) to 24:00 on the 80th day of farming and is clearly stated in the insurance contract.

2. For Giant Tiger Shrimp, the insurance period is effective from 00:00 on the first day of farming (the day of releasing seedlings) to 24:00 on the 120th day of farming and is clearly stated in the insurance contract.

3. For fish, the insurance period is effective from 00:00 on the first day of farming (the day of releasing seedlings) to 24:00 on the 182nd day of farming and is clearly stated in the insurance contract.

Article 6. Insurance Amount

The insurance amount is calculated using the following formula:

Article 7. Insurance Premium

1. Insurance Premiums:

The insurance premium is calculated by multiplying the insurance rate by the insured amount and is reflected in the insurance contract.

2. Payment of Insurance Premium:

The insured person must pay the entire insurance premium stipulated within seven days from the date of signing the insurance contract to the insurance company. If the insured person fails to fully and timely pay the insurance premium, compensation will not be processed, except where there is a different written agreement.

Article 8. Exclusions from Insurance

The insurance company will not compensate the insured for losses caused by the following reasons or consequences:

1. Intentional actions and wrongful acts: Intentionally causing harm or injury to shrimp/fish;

2. Losses occurring due to disease causes within ten days from the release of seedlings;

3. The insurance company has the right to refuse partial payment of the insurance compensation for cases where losses occur directly due to the insured person's failure to follow the aquaculture breeding procedures and disease prevention measures as prescribed by competent authorities;

4. Poison: Any substances or chemicals that pollute water sources and/or cause illness, injury, and/or death to shrimp/fish;

5. Other exclusions

a) Shrimp/fish deaths or destructions not due to disease at the request of competent authorities;

b) Monthly declarations that do not accurately reflect the actual shrimp/fish farming at each farming facility;

c) Changing the area of the farming facility without notifying the insurance company.

Article 9. Compensation Settlement

1. Notification

The insured person must notify the insurance contract holder and local authorities within twenty-four hours, and the insurance contract holder must notify the insurance company within forty-eight hours when an insurance event occurs, and immediately take timely action according to the guidance of competent authorities and/or recommendations from the insurance company to prevent and minimize losses.

2. Claim Documents

Valid claim documents (prepared primarily by the insurance company) include:

a) Provided by the insured person and the insurance contract holder:

- A copy of the insurance contract provided by the insurance contract holder;

- Insurance certificates of each insured person with affected farming facilities;

- A claim request form (requested by the insured person and confirmed by the insurance contract holder).

b) Collected by the insurance company:

- Official announcements from competent authorities regarding diseases/natural disasters and damage confirmation papers from village people's committees for affected farming facilities;

- Other relevant documents required for claim settlement (as requested by the insurance company and in accordance with legal regulations).

3. Time Limit for Compensation Settlement

The insurance company is responsible for paying compensation within thirty (thirty) days (excluding holidays, Saturdays, and Sundays) from the date of receiving complete valid claim documents.

4. Compensation Payment

Amount of Compensation: When an insurance event occurs, the insurance company will pay the insured person the compensation amount calculated using the following formula:

Compensation Amount = (Insured Loss Rate x Insured Amount) x (100% - Deductible Rate).

a) Table of Insured Loss Rates for Whiteleg Shrimp

b) Table of Insured Loss Rates for Black Tiger Shrimp

c) Table of Insured Loss Rates for Fish

Article 10. Termination of Insurance Contract

1. The insurance contract shall automatically terminate in the following cases:

a) The insured party fails to pay the full insurance premium on time as agreed;

b) The insured party has harvested shrimp/fish or the insurance period has expired;

c) When the insurance company has paid compensation to the insured party due to the occurrence of an insured event.

2. If the insured party wishes to terminate the insurance contract before the expiration date, they must submit a written request to the insurance company at least 10 days prior. After both parties agree in writing to terminate the contract, the insurance company will refund 80% of the remaining insurance premium under the condition that no insured event has occurred. In case the insurance company terminates the contract prematurely, it must refund 100% of the remaining insurance premium.

Article 11. Dispute Resolution

Any disputes arising from or related to the insurance contract, if not resolved through negotiation, shall be settled according to the ruling of the competent court in accordance with Vietnamese law.

The statute of limitations for filing a lawsuit regarding the insurance contract is three years from the date of dispute occurrence.

 

ANNEX

INSURANCE FEES FOR SHRIMP/FISH
(Annexed to the Rules, Tariff, and Liability Limits for Shrimp/Fish Insurance)

Combined insurance fee; deductible rate 30%

 

RULES, TARIFF, AND LIABILITY LIMITS FOR RICE INSURANCE BASED ON YIELD INDEX

(Issued together with Decision No. 3035/QD-BTC dated December 16, 2011 of the Minister of Finance)

Article 1. General Provisions

1. These rules are established to implement the pilot agricultural insurance according to Decision No. 315/QD-TTg dated March 1, 2011 of the Prime Minister.

2. These rules stipulate the conditions and terms of the rice yield index insurance product.

Article 2. Interpretation of Terms

1. Rice: Within these rules, rice refers to paddy rice.

2. Insured person: Refers to households/organizations growing rice in the commune that have registered to participate in insurance and have legitimate rights over the insured rice area.

3. Insured party: Is the insured party and/or their authorized representative approved by the Commune People's Committee. The representative for the insured party may be a commune government official or the head of social organizations within the commune.

4. Insured unit: Communes within provinces implementing agricultural insurance pilot programs pursuant to Decision No. 315/QĐ-TTg dated March 1, 2011.

5. Agency providing actual yield data: General Statistics Office, provincial Statistical Bureaus, and district Statistical Offices.

6. Insured rice area: The actual rice planting area of the insured party. Measured in hectares per crop.

7. Average commune yield: The average yield of the three corresponding crops in the three preceding years in the insured commune according to official statistics from competent authorities. Measured in tons/hectare.

8. Rice price: The monetary value (Vietnamese Dong) of one kilogram (kg) of rice calculated for each crop in the insured area. The rice price is determined based on the most recent published price by the Provincial Statistics Bureau and recorded in the insurance contract/policy certificate.

9. Insured yield: Calculated as 80% of the average commune yield. Compensation will only be paid out when the actual yield is lower than the insured yield in the insured commune. Measured in tons/hectare.

10. Insurance amount: The monetary value insured per crop and calculated using the following formula:

Insurance amount = Insured rice area x Average commune yield x Rice price

11. Actual commune yield: The yield achieved per crop, averaged across the entire commune, according to official statistics from competent authorities. Measured in tons/hectare.

12. Yield reduction level: The difference between the actual commune yield and the insured yield when the actual yield is lower than the insured yield.

13. Natural Disaster: Includes events such as typhoons, floods, droughts, severe cold, frost, smog, tsunamis, and saltwater intrusion as announced by relevant authorities.

14. Pests and diseases: Includes yellow dwarf, curly top, black streaked dwarf, blast, and brown planthopper disease as announced by relevant authorities.

15. Insurance Premium: The amount of money collected from the insured party and/or funding support from the state budget. The insurance fee is calculated per crop.

16. Premium Rate: The ratio (expressed as a percentage) between the insurance fee and the insurance amount. Specific insurance fee ratios are detailed in the Annex accompanying these rules.

Article 3. Commitments and Conditions

1. Conditions for participating in insurance and responsibilities of the insured party

To be eligible to participate in insurance, the insured party must comply with the following conditions:

a) Truthfully, fully, and accurately declare all information on the Insurance Application Form provided by the insurance company;

b) Pay the full insurance premium on time;

c) Insure the entire household rice area and all crops;

d) Adhere to rice cultivation procedures, including planting and harvesting stages, as prescribed by the Ministry of Agriculture and Rural Development and local competent authorities;

e) Follow recommendations from agricultural management agencies (district, provincial agriculture departments) regarding the selection of rice varieties and technical measures to prevent damage and protect the harvest;

f) Immediately notify the insurer upon the occurrence of an insured event (natural disasters, diseases);

g) Must replant according to the guidance of the Ministry of Agriculture and Rural Development and/or local competent authorities;

h) In all circumstances, take appropriate measures at their own expense to prevent and limit losses.

2. Rights of the insured party

Upon entering into the insurance contract, the insured party enjoys the following benefits:

a) Receiving compensation according to these rules;

b) Having the right to lodge complaints in case of disputes.

3. Responsibilities of the policyholder

a) Provide truthful, complete, and accurate information within 15 days of receiving a request from the insurance company;

b) The policyholder signs the insurance contract with the insurance company and transfers the insurance certificate to each insured party after collecting the full insurance premium on time in the insured commune and returning it to the insurance company.

c) Shall be responsible for clearly explaining to the insured the method of compensation payment. Closely coordinate with the insurance company in the payment of compensation to the insured. Shall be legally liable for fully and accurately paying compensation to each insured individual within fifteen days after receiving the compensation amount from the insurance company.

d) Cooperate and create all appropriate conditions for data-providing agencies and agricultural experts designated by the insurance company;

đ) Immediately notify the insurance company and competent authorities upon receipt of the insured's notification regarding natural disasters, diseases, and epidemics, not later than twenty-four hours;

4. Responsibilities and benefits of the insurance company

a) Upon receipt of a notice of an insured event, the insurance company shall be responsible for leading and coordinating with relevant agencies to determine the extent of loss and propose measures to minimize losses to the maximum extent possible;

b) Timely compensate the insured when an insured event occurs according to this Rule;

c) Be entitled to collect insurance premiums as agreed in the insurance contract.

5. Principles for determining compensation

The insurance company, the policyholder, and the insured understand and agree that:

a) The value of the loss due to reduced yield for each insured person shall be determined based on the data published at the commune level by the data-providing agency;

b) The replanting area shall be determined by the agricultural expert designated by the insurance company;

c) Within thirty days from the date of receiving complete and valid compensation claims, the insurance company shall be responsible for paying the compensation;

d) In case of refusal to compensate, the insurance company must provide a clear explanation in writing.

6. Time limit for claiming compensation

The time limit for claiming compensation under the insurance contract is one year from the date of occurrence of the insured event.

Article 4. Scope of Insurance Coverage

The insurance company will compensate the insured for the reduction in rice yield caused by natural disasters and/or pests and diseases during the insurance period.

Supplementary Insurance: The scope of insurance under this Rule is expanded to cover replanting costs in cases where more than twenty percent of the actual rice area in the commune is damaged during the planting/transplanting period due to risks covered under this Rule. In such cases, the insurance company will compensate the insured once with an amount equal to five percent of the insurance sum of the rice area that needs to be replanted.

The insurance contract remains effective for the affected rice area that is replanted.

If replanting does not occur, the insurance contract will automatically terminate.

Article 5. Insurance Period

The insurance contract is signed for a term of one year and may be renewed by agreement among the parties including the insurance company, the policyholder, and the insured. Depending on specific crop seasons, the parties may agree to adjust the effective date of the contract to ensure continuous coverage of rice cultivation. The insurance coverage begins after transplanting and ends immediately after the harvest date.

Article 6. Insurance Premium

The insurance premium for each case and each insured person shall be calculated according to the following formula:

Insurance Premium = Insurance Amount x Insurance Premium Rate

The insured person must pay the entire insurance premium stipulated within seven days from the date of signing the insurance contract to the insurance company. If the insured person fails to fully and timely pay the insurance premium, compensation will not be processed, except where there is a different written agreement.

Article 7. Exclusions from Insurance

The following risks are not covered under the insurance contract:

1. All risks not mentioned in Clause 13 and 14 of Article 2 of these Rules.

2. Risks related to war, nuclear incidents, radiation, and terrorism.

3. Intentional damage caused by the insured.

4. The insurance company has the right to refuse partial compensation for losses arising directly from the insured's failure to follow the rice planting procedures and disease prevention measures as prescribed by the competent authority.

5. Risks related to post-harvest storage (rice sprouting, burning, flooding, theft, contamination...).

6. Risks related to rice quality such as nutritional content, mold, loss of flavor.

Article 8. Compensation

1. A valid claim file (prepared by the insurance company) includes:

a) Provided by the insured/policyholder:

- A copy of the insurance contract;

- A copy of the Insurance Certificate;

- A notice of loss and request for compensation. b) Collected by the insurance company:

- Official announcement by the competent authority regarding the insurance event (natural disasters, epidemics);

- Official report by the entity providing actual yield data.

- Other relevant documents required for claim settlement (as requested by the insurance company and in accordance with legal regulations).

2. Determination of Compensation Amount

The compensation amount for each insured case is calculated as follows:

Compensation Amount = Yield Reduction Rate x Insured Rice Area x Rice Unit Price

3. Method of Payment

After determining the compensation amount, the insurance company will pay it directly to the policyholder. The policyholder is responsible under the law for paying the compensation amount to each insured farmer according to the insured rice area.

Article 9. Termination of Insurance Contract

If the insured wishes to terminate the insurance contract before the expiration date, they must submit a written request to the insurance company at least 10 days prior. Upon mutual agreement in writing to terminate the insurance contract, the insurance company will refund 80% of the remaining insurance premium provided that no insurance event has occurred. In the case where the insurance company terminates the contract prematurely, it must refund 100% of the remaining insurance premium.

Article 10. Dispute Resolution

Any disputes arising from or related to the insurance contract, if not resolved through negotiation, shall be settled according to the ruling of the competent court in accordance with Vietnamese law.

The statute of limitations for filing a lawsuit regarding the insurance contract is three years from the date of dispute occurrence.

 

ANNEX

INSURANCE PREMIUM TABLE FOR RICE CROPS BASED ON YIELD INDEX
(Annexed to the Rules, Premium Table, and Liability Limits for Crop Insurance Based on Yield Index)

1. Insurance Amount: The insurance amount is calculated for each case based on the insured rice area multiplied by the average yield over three years per crop multiplied by the rice unit price.

2. Rice Unit Price: The monetary value (Vietnamese Dong) of one kilogram (kg) of rice for each crop in the insured area. The rice unit price is determined based on the principle of taking the most recent published rice price by the Provincial Statistics Office and recorded in the insurance contract/insurance certificate.

3. Insurance Premium Rate: The insurance premium rate applicable to all crops in the province is expressed as a percentage of the insurance amount.

 

RULES, PREMIUM TABLE AND LIABILITY LIMITS FOR ANIMAL INSURANCE

(Issued together with Decision No. 3035/QD-BTC dated December 16, 2011 of the Minister of Finance)

Article 1. General Provisions

1. These rules are established to implement the pilot agricultural insurance according to Decision No. 315/QD-TTg dated March 1, 2011 of the Prime Minister.

2. These rules stipulate the conditions and terms of animal insurance products.

Article 2. Interpretation of Terms

1. Insured party: Is the insured party and/or their authorized representative approved by the Commune People's Committee. The representative for the insured party may be a commune government official or the head of social organizations within the commune.

2. Insured person: Is a farming household/farming organization within the pilot area for agricultural insurance as prescribed.

3. Insurance company: Is a non-life insurance company permitted to implement pilot agricultural insurance.

4. Poultry farm: Livestock farming at the time of joining the insurance with a herd size reaching the number:

a) Cattle, buffalo:

- Breeding and milk production with a regular herd size of 10 or more;

- Meat production with a regular herd size of 50 or more. b) Pork, sow:

- Breeding with a regular herd size of 20 or more;

- Pork meat production with a regular herd size of 100 or more (excluding piglets).

c) Poultry: Regular poultry meat and egg production with a herd size of 1,000 or more (excluding chicks under 7 days old).

5. Small-scale livestock farming: Livestock farming below the scale of a farm.

6. Non-deductible Deductible Limit: The percentage of animals dying in a herd in one loss period that is not considered an insurable loss.

7. Deductible Limit: The percentage of the insurance amount that the insured must bear when an insured event occurs.

8. Insurable event: An event where livestock dies due to disease or epidemic or natural disaster during the insurance period as officially announced by the competent authority.

9. Insurance amount: A sum of money in Vietnamese Dong agreed upon by both parties as the basis for calculating insurance premiums and compensation.

Article 3. Insurance Conditions

1. Livestock must be raised according to technical standards and breeding procedures as prescribed by the Ministry of Agriculture and Rural Development and/or competent authorities at the local level.

Livestock must be healthy, vaccinated, and not raised in areas currently affected by disease outbreaks.

2. The number of livestock participating in insurance must meet the following conditions:

a) In the case of individual farming: All livestock of the household must be insured and:

- Cattle: At least 30% of the total number of livestock in the commune.

- Pigs for meat: At least 30% of the total number of livestock in the commune.

- Poultry: At least 30% of the total poultry in the commune, and the household must ensure a certain scale. Specifically: Raise meat birds from 200 or more; raise egg-laying birds from 100 or more.

b) In the case of farm-scale farming: All livestock of the farm must be insured.

3. The waiting period not covered under insurance liability for disease and epidemic: Livestock that die within 10 days from the date of receiving insurance and livestock transferred from another province that die due to disease and epidemic within 30 days.

4. Livestock must be within the age range specified below:

a) Dairy cows: From 6 months old to 12 years old.

b) Cattle: From 6 months old to 10 years old.

c) Sow and male breeding pigs: From 6 months old until they are transferred to meat production or culled, and not exceeding 8 years old.

d) Meat pigs (including后备内容，请问需要继续翻译吗？如果有，请告知从哪一行开始。

d) Broiler chickens: From two weeks old until the end of the rearing cycle, depending on each type.

e) Layer chickens: From two weeks old until sixty weeks old.

Article 4. Scope of Insurance Coverage

The insured person will be compensated in the event that the livestock dies due to causes directly caused by:

1. Natural disasters: Typhoons, floods, droughts, severe cold, frost damage, frost, salinity intrusion, tsunamis.

2. Epidemics:

a) For cattle and buffaloes: Foot-and-mouth disease.

b) For pigs: African swine fever, foot-and-mouth disease.

c) For chickens: Avian influenza.

3. Destruction due to epidemics (as stipulated in Clause 2, Article 4 of this Regulation) according to the decision of the competent authority.

Article 5. Exclusions from Insurance

1. The insurance company shall not be liable for compensation for the death of livestock not caused by natural disasters or epidemics as specified in Article 4 of this Regulation.

2. The insurance company has the right to refuse to compensate part of the insurance indemnity amount for losses occurring due to direct causes resulting from the insured person's failure to follow the breeding procedures and disease prevention measures as prescribed by the competent authority.

3. The insurance company shall not compensate the insured person for losses arising from:

a) Livestock dying due to intentional human actions: slaughter, destructive acts, rebellion, strike, starvation.

b) Livestock being stolen;

c) Livestock dying due to overuse or excessive strain;

d) Livestock dying due to surgery or castration;

e) Livestock dying during the birthing process;

f) Cull livestock;

g) Livestock dying due to natural attrition;

h) War, terrorism, radiation, nuclear incidents.

Article 6. Insurance Amount

1. Based on inspecting the insured object of the insured person, the insurance claim request form, and related documents, the insurance company and the insured person agree on the insurance amount but it must not exceed the amount specified in the insurance premium schedule.

2. The insurance amount for cattle, buffaloes, and sow pigs is determined individually for each animal and remains fixed throughout the insurance period.

3. The insurance amount for fattening pigs and chickens is calculated based on the value of the production volume of the herd during the breeding cycle.

Article 7. Insurance Period

The insurance period is the time specified in the insurance contract and is detailed for each herd of livestock according to the inventory list. If an insured event occurs during this period, the insured person will be compensated. Specific provisions are as follows:

1. Cattle: One year.

2. Pork: From two months old until they are sold out, with a maximum age not exceeding six months.

3. Sows and boars: One year.

4. Broiler chickens: From two weeks old until they are sold out, and not exceeding seven weeks for specialized meat chickens and ten weeks for dual-purpose chickens.

5. Egg-laying chickens: One year or the entire breeding cycle.

Article 8. Premium

1. Premium

The premium is calculated by multiplying the insurance premium rate (%) by the amount of insurance and is stipulated in the insurance contract.

2. Payment of Premium

The insured person must pay the entire insurance premium stipulated within seven days from the date of signing the insurance contract to the insurance company. If the insured person fails to fully and timely pay the insurance premium, compensation will not be processed, except where there is a different written agreement.

Article 9. Deductible Amount

1. The non-deductible deductible amount applies only to disease and epidemic risks. Specifically:

a) For farm breeding: 10% of the number of insured livestock per insurance contract;

b) For individual breeding: 10% of the total herd based on the entire commune scale.

2. The deductible amount applicable to all risks is as follows:

a) For farm breeding: 40% of the insured loss;

b) For individual breeding: 40% of the insured loss;

c) In cases where livestock must be destroyed (as provided in Clause 3, Article 4 of these Rules) according to the regulations of the competent authority: 50% of the insured loss.

Article 10. Compensation Settlement

1. Reporting Insured Events

When an insured event occurs, the insured person or the contract holder must:

a) Immediately notify (no later than two days) the insurance company or its representative;

b) Take immediate action to handle the situation promptly to prevent and minimize losses.

Depending on specific circumstances, the insurance company may refuse to compensate part of the compensation amount if the insured person does not take such actions.

2. Compensation Documents Include:

a) Provided by the insured person:

- Claim request form (according to the template);

- Insurance certificate or insurance contract (copy);

b) Collected by the insurance company:

- Photographs of damaged livestock (if available);

- Damage assessment report;

- Certificate of livestock death due to disease or epidemic confirmed by the authorized veterinary agency;

- Announcement of disease, epidemic, or natural disaster/disposal decision (if applicable);

- Proof of premium payment.

3. Time Limit for Compensation Settlement

The insurance company is responsible for settling compensation within thirty days from the date of receiving complete and valid compensation documents as stipulated in these Rules.

4. Compensation Payment

STBT = SLVNC x STBHTĐC x (1-TLKT)

Where:

- STBT is the compensation amount.

- SLVNC is the number of insured livestock that died.

- STBHTĐC is the agreed-upon insurance amount at the time of death calculated according to the breeding cycle shown below.

- TLKT: Deductible ratio (deductible amount).

a) Pork

b) Broiler Chickens

c) Egg-Laying Chickens

Article 11. Responsibilities of the Insured/Contract Holder

1. Fulfill fully the care, feeding, and use of animals in accordance with the regulations of the Ministry of Agriculture and Rural Development and the competent authority at the local level.

2. Promptly notify the insurance company of any changes to the insured object that may affect the risk level.

3. Actively take all measures to treat and report promptly to the insurance company when animals show signs of disease.

4. Pay the insurance premium fully and on time.

5. Promptly notify the insurance company or its representative and immediately take action to handle and prevent loss when an insured event occurs (the death of an animal).

6. Cooperate with the insurance company in the appraisal and compensation process.

7. Other responsibilities as prescribed.

Article 12. Responsibilities of the Insurance Company

1. Closely cooperate with the insured to minimize losses to the maximum extent possible.

2. Record loss notifications from customers.

3. Provide preliminary guidance on loss resolution and instructions for preparing compensation files.

4. Resolve compensation promptly and in accordance with regulations.

Article 13. Termination of Insurance Contract

1. In case the insured wishes to terminate the insurance contract before the expiration date, they must submit a written request to the insurance company ten days prior. Upon mutual agreement in writing to terminate the contract, the insurance company will refund eighty percent of the remaining premium for the duration of the contract, provided no insured event has occurred.

2. In case the insurance company terminates the contract before the expiration date, it must refund one hundred percent of the remaining premium for the duration of the contract.

Article 14. Resolution of Disputes

Any disputes arising from or related to the insurance contract, if not resolved through negotiation between the parties involved, shall be resolved according to the ruling of the competent court in accordance with Vietnamese law.

The statute of limitations for filing a lawsuit regarding the insurance contract is three years from the date of dispute occurrence.

 

ANIMAL INSURANCE PREMIUM TABLE

(Annexed to the Rules, Premium Table, and Liability Limits for Animal Insurance)

1. Insurance amount

The amount of insurance is agreed upon between the insured and the insurer based on actual market prices but shall not exceed the amounts specified below:

2. Premium Table