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Legal and Regulatory Framework to Facilitate Agricultural Insurance – Part 1 – Application to Dong Thap Project

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Publication date
28/07/2010
Number of Pages
17
Language:
English
Type of Publication:
Other
Focus Region:
Asia and the Pacific
Focus Topic:
Agricultural Value Chains / Agri-Businesses
Institutions / Organizations
Type of Risk:
Market-related
Weather & Climate related
Policy & institutional
Type of Risk Managment Option:
Risk transfer
Commodity:
Other
Author
Richard Carpenter
Organization
Ford Foundation

This presentation outlines the proposal and execution of the Dong Thap Contract Pilot for index-based business interruption policies and insurance. Beyond this specific case, more detail is given into the legal characteristics of insurance contracts and index contracts as insurance, details on indemnity and compensation for loss in the case of Vietnam and in the general case of basis risk, valued policies versus index policies for insurance, and the legal risks associated with index insurance contracts. An interesting section of the presentation looks at how the Dong Thap Index Contract minimizes legal risk, which can be useful in future executions of such pilots.