Officials say this has happened because a new legal corridor has to be enacted by the Government before implementation can begin.
Two years after the Government introduced the offshore fishing insurance scheme with Decree No 67/2014/ND-CP, just 7,500 fishing households in the country had participated in it.
Under Article 5 of the Decree, the Government would provide financial support to all offshore fishing household co-operative members participating in the Government’s insurance scheme.
The Government would support 70 percent of the insurance payment for fishing boats with 90 CV to 400 CV engines; and 90 percent of the insurance value for boat having engine power from 400 CV up wards. However, the Decree expired by late 2016.
At a year-end meeting in December 2016, the Government decided to extend implementation of the Decree for another 12 months until December 31, 2017.
However, the decision is yet to be implemented.
Meanwhile, many fishing households have complained that changes in the banks’ lending policies have made it very difficult for them to obtain credit.
They’ve also expressed their hope that during the extension period, more insurance companies would join in the scheme so that they would have more choices.
They also want the Government to extend the fishing grounds under the cover of the insurance scheme.
For the extension period of Decree 67/2014 till December 31, 2017, Bao Minh Insurance Corporation has been appointed to act as the sole insurance agency.
To speed up the implementation of the extension, Deputy Prime Minister Trinh Dinh Dung has asked the Ministry of Finance to oversee the selling of insurance schemes to project beneficiaries.