Government Encourages Local Governments to Support Typhoon and Flood Insurance Payments for Agricultural, Livestock, and Fishery Workers

Korea Commission on Human Rights, Institutional Improvements to Activate 'Disaster Policy Insurance' for Agricultural, Livestock, and Fishery Workers

On September 3rd last year, apples ready for harvest were seen scattered on the ground of an orchard in Jangsu-gun, Jeollabuk-do, after being blown down by the strong winds of Typhoon Maesak. (Photo by Jangsu-gun) [Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] To reduce the burden of disaster policy insurance premiums on farmers, livestock farmers, and fishermen who have been directly hit by COVID-19, typhoons, and floods, the government and local governments are stepping up support. Since it is difficult to increase insurance subscription rates with only central government funding, the relevant ministries are urged to encourage local governments to provide policy support.

The Anti-Corruption and Civil Rights Commission (ACRC) announced on the 27th that the Ministry of the Interior and Safety, Ministry of Environment, Ministry of Agriculture, Food and Rural Affairs, and Ministry of Oceans and Fisheries have accepted the demand for institutional improvement of the "Rational Recovery Plan for Natural Disaster Damage" and will implement it starting this July.

According to the ACRC investigation, the subscription rate for disaster policy insurance was low. In the case of wind and flood insurance, only 15.5% of new houses and 8.6% of vinyl greenhouses were insured. For crop disaster insurance, 38.8% of crops and 93.3% of livestock were insured. Aquaculture disaster insurance had a subscription rate of 39%.

To reduce the insurance premium burden on farmers, livestock farmers, and fishermen, the Ministry of the Interior and Safety increased the central government subsidy rate for wind and flood insurance from 43.5% to 56.5% last year, but there were limits to increasing subscription rates.

The ACRC recommended that the government encourage local governments to also reduce the insurance burden for these groups.

According to the ACRC, a local government in Jeollabuk-do increased its military budget support by 10.2% to 15.7% compared to the previous year, resulting in a 77% increase in new housing insurance subscriptions and a 2619% increase in vinyl greenhouse subscriptions.

As a result, insured residents received compensation of about 4 million to 7 million KRW for house flooding. This was a greater benefit than the 2 million KRW government subsidy received by uninsured residents.

The ACRC instructed the relevant ministries to have each local government implement measures such as ▲ inspecting and consulting local governments with low insurance subscription rates ▲ producing and providing insurance-related guides to local governments ▲ disseminating insurance support ordinances to each local government to increase insurance subscription rates.

They also strengthened publicity through community leaders and social networking services (SNS) about the damage report filing period. This was due to criticism that damage was omitted or underreported because of regulations requiring damage reports within 10 days of natural disaster occurrence.

Yang Jongsam, Director of the Improvement Bureau at the ACRC, said, "Local governments' interest and support are essential to stabilize residents' lives early and to prepare practical damage recovery funds for them."