Non-Government Program Insurance
The government through Jasindo also offers private products targeting agricultural businesses, financial institutions, and farmers. Products available include:
- Rice Farming Insurance
- Cattle Business Insurance
- Corn Farming Insurance
- Independent Fisherman Insurance
For business actors who will register, they can use an online service in the form of the Agricultural Insurance Information System (SIAP).
In addition to insurance that is subsidized by the government, there is a comparison of the amount of premium that must be paid if farmers choose insurance products based on the method of payment. The comparison includes:
- Self-payment: farmers have to pay the entire insurance premium without the help of the government or other parties.
- Partnership payments: farmers are assisted by insurance companies in paying premiums, but there is a certain profit-sharing agreement that is agreed upon by both parties.
- Credit pattern payments: premium payments are adjusted to the credit taken by the farmer.
How to Buy Agricultural Insurance
Some of the ways that need to be done to get insurance subsidized by the government include:
- Farmers participate in data collection conducted by the local district or city office.
- The data will be sent to the Ministry of Agriculture through the Director-General.
- Filling out the insurance registration application form by the farmer. Then the government will verify.
- After successful verification, farmers are met with the insurance provider company.
- Furthermore, the government will conduct socialization regarding premium payments and the selection of insurance risks.
- Issuance of policies that are distributed to farmers.
- Farmers can file a claim if they experience a loss after the policy is issued.
- Calculation of premiums and payment schemes.
- Farmers are also given protection in the form of life insurance.
How to Claim Agricultural Insurance
Farmers need to pay attention to all the risks covered by insurance, all of which have been stated in the policy. To be able to submit a claim, farmers must also register their insured fields when entering the planting season to the head of the Farmers Group appointed by the service. Farmers also need to pay monthly premiums regularly. It is very important to pay premiums regularly so that insurance remains active and in the future farmers can make claims and use the funds for other land uses such as agricultural diversification. Agricultural diversification is the allocation of agricultural resources to several other activities that are economically and environmentally beneficial.
Crops that can get claims are plants that are 10 days old for planting (HST) or 30 days for planting upland rice and planting seeds directly. How submit a claim can be done through the following procedures:
- Farmers submit claims to PT Jasindo through agricultural officers such as farmer assistants, agricultural extension workers, and observers of plant-disturbing organisms.
- Claims will be identified and verified by the team.
- Damage to crops must reach a minimum of 75 percent, less than that amount will not be compensated.
- Farmers will receive coverage of a maximum of IDR 6 million per hectare if the claim is approved.
What If Insurance Claim Is Denied?
Submitting an insurance claim is indeed easy and difficult, it takes accuracy in reading the policy so that the insurance claim is accepted. The reason is, that if the loss felt by the farmer is not under the provisions of the policy, then compensation cannot be given.
Farmers should file claims immediately after damage or loss occurs, there is no need to wait too long. If it is too long, the loss may no longer be covered by insurance. Farmers can inform the loss through a local officer who handles insurance.
How it Works/Mechanism of Agricultural Insurance
Based on how it works or its mechanism, agricultural insurance is divided into 2 types, namely self-help insurance and insurance with subsidies from the state budget. In self-help insurance, farmers must pay their insurance premiums without help from other parties. Indeed, if farmers choose self-help insurance with a partnership system, farmers will get assistance from the company, but farmers need to provide benefits according to the agreement.
Meanwhile, in government-subsidized insurance, farmers need to meet certain requirements to get premium subsidies from the government. The government pays a premium of 80 percent and the rest is paid by farmers. The mechanism of this type of insurance is quite simple, namely insurance registration is carried out through farmer groups, making it easier for farmers to get protection.
But of course, to be able to get subsidized insurance, farmers need to meet the following requirements:
- Farmers do not own private land, the land must be arable land with an area of not more than 2 hectares.
- If the farmer owns private land, the agricultural work cannot be more than 2 hectares.
- Farmers are small-scale horticultural, garden, or livestock farmers.
- Join an active farmer group.
- Prioritizing farmers who are included in sustainable food agriculture.
- Carry out agriculture or animal husbandry in earnest after premium assistance is received.
Tips for Choosing Agricultural Insurance
Some tips for choosing agricultural insurance for farmers include:
- Farmers choose insurance products according to their conditions and needs
- If farmers meet the requirements as farmers who are entitled to premium subsidies, then farmers need to prepare all the requirements. Make sure all the conditions are met so that the insurance registration application is not rejected.
- Active in farmer groups if you want to get premium subsidies.
- For farmers who choose private insurance, pay attention to the type of insurance chosen, whether self-help insurance, partnership insurance, or insurance with a credit pattern.
- Choose private insurance premiums that are not burdensome and under your abilities, and have useful coverage.
- Choose insurance that provides coverage for multiple, comprehensive, and effective risks according to conditions in the field.
- Also, choose insurance that is easy in the registration process and the claim submission process.
- Farmers also need to know the ins and outs of filing a claim in advance to avoid claim rejection when a loss occurs.