Finance Minister Arkhom Termpittayapaisith has proposed the issuance of insurance for high-value fruits, including durian, mangoes, oranges, and bananas, in an effort to boost the confidence of farmers.
Existing insurance policies currently cover only damage to fruit trees caused by natural disasters, leaving the actual fruits uninsured against such risks.
Addressing the Office of Insurance Commission during the CEO Insurance Forum 2023, Arkhom put an emphasis on insuring high-value fruits to protect farmers from potential losses resulting from natural disasters. He noted, however, that insurance companies have been hesitant to consider such proposals due to the substantial financial implications, as exemplified by the recent case of an orange orchard in Chiang Rai province, which suffered damage amounting to hundreds of millions of baht after a severe storm.
Arkhom urged the OIC to evaluate and design insurance policies that calculate premiums based on risk levels. By implementing such policies, fruit growers would gain greater confidence in cultivating high-value fruits, knowing they have financial protection against unforeseen events.
In addition to fruit insurance, the Finance Minister suggested that insurance policies for electric vehicles (EVs) should also be based on actual risks to address the perception of high repair costs, which currently contribute to relatively high premiums.
Furthermore, Arkhom proposed the revision of insurance policies for state infrastructure, as existing policies solely cover projects during construction and exclude completed projects, leaving them vulnerable to potential risks without adequate coverage.
Emphasizing the importance of aligning with the United Nations’ Sustainable Development Goals (SDGs), Arkhom noted that the national insurance development plan must incorporate environmentally and socially responsible principles to address climate change concerns. (NNT)
