Cambodia - Farm microinsurance plan launched
Source: Asia Insurance Review | Aug 2015
The Cambodian Agriculture Cooperative Insurance Company (CACIC), an initiative established by the Cambodia Centre for Study and Development in Agriculture (CEDAC), has announced the start of an agriculture microinsurance service to help rice farmers better respond to climate change.
Farmers who become a member of CACIC will have to pay an insurance fee of around US$10 per hectare each season, although this cost will vary slightly depending on the type of rice variety grown, reported the Phnom Penh Post.
In return, they receive consultation on farming techniques, climate change resilience methods and will get an insurance payout when their crop is damaged either by flood or drought, according to Mr Yang Saing Koma, president of CEDAC.
The initiative will be implemented by CEDAC in five provinces including Takeo, Kampot, Kampong Chnang, Prey Veng and Kampong Speu, before it is expanded nationwide.
The goal of the insurance scheme is to help farmers who, hit by natural disasters, might sell their land so as to pay back high interest rate loans or migrate for work abroad.
CACIC was founded with US$96,000 in funding from the Netherlands’ Achmea Foundation.