Nearly 15,000 offshore fishing vessels covered by insurance

There are around 15,000 fishing vessels with nearly 146,000 crew members in 28 coastal localities across the country currently covered by insurance policies after almost two years of implementation of Decree No. 67/2014/NĐ-CP aimed at supporting offshore fishing vessels.

Illustrative image. Photo: Huu Chi

According to Nguyen Quang Huyen, Deputy Head of Insurance Management and Supervision Department under the Ministry of Finance, the insurance policy according to Decree No. 67 is voluntary; participation depends entirely on the will and needs of fishermen.

On another note, during the first 6 months of 2016, total premiums of offshore fishing vessels were estimated at VND128.3 billion, while total insurance liability in case of losses stood at VND12.5 trillion (97 times the total premium).

To date, insurers have handled compensation settlement for 1,267 cases (553 in 2015 and 714 during the first five months of 2016); there have been no cases of profiteering and insurance frauds discovered.

Fishermen have claimed compensation worth VND115.8 billion, insurers have settled insurance compensation with a total amount of VND33.7 billion, and the remaining is in appraisal.

In addition, there are 3,389 vessels that have opted for insurance for fishing equipment with total premiums of VND3.6 billion, with the insured amount in case of loss standing at VND449.8 billion (123.4 times than the premium).

For large losses, the Ministry of Finance has promptly directed participating insurers to urgently co-ordinate with relevant authorities to assess damage, define the scope of insurance protection and present compensation for fishermen.

The efforts and activeness of insurers in promptly paying compensation to ship owners have been appraised by the community, helping them to overcome difficulties to build new ships for offshore fishing activities and protect the country’s maritime sovereignty.

(Source: NDO)