With the assistance of Sompo Japan Nipponkoa Insurance Inc, the Myanmar Insurance (MI) and Myanmar Agricultural Development Bank (MADB) jointly have started a pilot project for the weather index-based crop insurance system in two regions.
Dr. Sandar Oo, Managing Director of Myanmar Insurance said: “This pilot project aims to partly helps farmers who are unable to repay their agricultural loans due to drought-induced crop losses, through the crop insurance system.
The one-year trial-run project takes place in Pyay Township in Bago Region and Shwebo Township in Sagaing Region.
During the trial-run period, the system will be applied to paddy alone. The premium rates are also fixed.
Myanmar Insurance will provide compensation to the insured farmers if the actual rainfalls are lower than the regional rainfalls.
“After the completion of pilot project, the MI will extend its insurance services to other regions and states with the approval of the government,” Dr. Sandar Oo added.
SOMPO insurance company is implementing the weather index-based crop insurance system for farmers in the southeast Asian countries.