Insurance Association of China issued ‘Agricultural insurance service general rules’, the insurance industry’s first community standard, on 22 November 2016, aimed to standardise agricultural insurance management.

The rules, the article reports, set clear operational standards for

  • basic services
  • internal control management
    • establish an early warning mechanism for major disasters
    • deal with agricultural emergencies in a timely manner
    • establish the major disaster risk dispersion mechanism, matching the business scale and solvency
    • make a good arrangement of the reinsurance system
  • underwriting services
    • ensure farmers’ right to know and autonomy
    • do not deceive farmers or mislead them into buying insurance
    • do not force or limit farmers to buy insurance
    • simplify underwriting procedures to improve information accuracy
  • claims service
    • accept reported cases 24 hours a day
    • indicate clearly time and place when preparing investigation reports
    • clearly indicate an opinion on the situation of damage for the insured object, the cause of the accident, and whether it should be covered
    • pay compensation directly to the insured person’s bank account
    • retain valid payment vouchers
  • inquiry service
  • value-added service
  • consultation and complaints

The rules, an Insurance Association of China spokesperson says, will

  • help insurance institutions improve the quality and competitiveness of agricultural insurance services
  • improve farmers’ insurance experience and satisfaction
  • improve the ability of the insurance industry, serving to develop the ‘three rurals’
  • help precise poverty alleviation