Why are fishermen not interested in fishing boat insurance?

In their journey to the sea, fishermen not only face the storms, but also have to accept countless risks related to their means, lives and properties. Fishing vessel insurance helps them feel secure at sea, contributing to protecting resources for the local fisheries industry. However, in reality, this policy has not yet been fully effective, as the participation rate is still low, fishermen are still hesitant, and insurance companies are cautious.

Waiting for insurance money

In 2021, the fishing boat NA 93704 TS with a capacity of 400CV of Mr. Le Duc Tuong, in Tan Hai hamlet, Quynh Lap commune (old), while fishing in the Gulf of Tonkin, suddenly caught fire and sank. His boat had purchased fishing boat insurance with a fee of 21 million VND/year, so immediately after the incident, his family contacted and completed the documents to send to the authorities many times with the hope of receiving compensation policies according to regulations. However, up to now, 4 years have passed, and this insurance money has not been paid.

Mr. Le Duc Tuong said that after the incident, the insurance company said that the documents did not have enough basis for compensation, leading to a prolonged processing time. To maintain the business, the family was forced to borrow nearly 1 billion VND to buy an old ship with a capacity of 300CV to continue going to sea. "The difficulties piled up, and the insurance money has not been received, causing a lot of pressure on the family. Currently, we do not dare to buy fishing boat insurance anymore because we are worried about complicated procedures and high risks," Mr. Tuong shared.

The reality in Quynh Lap commune (formerly Hoang Mai town), now Tan Mai ward - the locality with the largest number of fishing boats in the province, clearly shows this. Mr. Nguyen Que Quyen - fishing boat owner said: "3 years ago, I bought insurance for the boat. When the boat caught fire, the compensation procedure was very complicated, taking several years to be paid. The cost of completing the paperwork was not small, so many fishermen in the village saw that and became discouraged and no longer interested in participating."

Quynh Lap Commune (old) currently has 110 fishing boats over 20m in length and nearly 60 boats under 20m in length. According to Mr. Phan Van Hai - Chairman of Quynh Lap Fisheries Association, out of 110 boats over 20m, 23 are built according to Decree 67/CP, which requires insurance because they are borrowing money from banks. The rest have very few insurance because insurance payments after accidents are delayed and procedures are difficult.

Costs and complicated paperwork

According to statistics from the Department of Agriculture and Environment, the province currently has more than 3,400 fishing vessels, of which about 1,200 are large-capacity vessels, regularly operating in offshore waters. However, the number of vessels actually participating in hull insurance is only at the mandatory level for vessels built under Decree 67/CP.

Going out to sea. Photo: Xuan Hoang

The main reason is the cost and complicated paperwork. The insurance premium for a fishing vessel with a capacity of 90 horsepower or more ranges from several tens to hundreds of millions of dong per year, depending on the value of the vessel and the number of crew members. Meanwhile, the income of fishermen depends entirely on the catch, weather conditions and fluctuations in the consumption market. Many boat owners believe that they have to spend a large amount of money without being sure of receiving compensation, so they accept the risk.

A fishing boat fire at Lach Quen Fishing Port in 2022. Photo: Xuan Hoang

Fisherman Truong Quang Hoa - fishing boat owner in Quynh Lap commune (old) said that in order for fishermen to be "interested" in fishing boat insurance, insurance companies need to accompany fishermen when they are unfortunately in an accident. That is, guide fishermen to complete documents and procedures, because fishermen's knowledge is limited.

Fishermen carry out procedures to trace the origin of seafood after docking at the fishing port. Photo: Xuan Hoang

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To make fishermen "interested" in fishing boat insurance, insurance companies need to accompany fishermen when they are unfortunately in trouble. That is, guide fishermen to complete documents and procedures, because fishermen's knowledge is limited.

Fisherman Truong Quang Hoa - fishing boat owner in Tan Mai ward

According to regulations, fishermen participating in fishing vessel insurance will be compensated in cases of risks such as natural disasters, collisions, fires, explosions, and serious damage; crew members are insured for their lives in case of work-related accidents.

However, the reality is different. Many accidents occur, the compensation level is still low compared to the damage, or the records are prolonged due to complicated procedures. Some provisions are not really "close" to the characteristics of the fishing industry. Along with that, the process of appraisal and verification of the scene in remote sea areas is difficult, leading to delays in compensation settlement.

Not only fishermen are hesitant, but even insurance companies are hesitant to implement. Fishing is inherently risky, while the ability to prevent it is limited. Insurance companies often face the risk of loss due to the high accident rate.
An official from Saigon - Hanoi Insurance Company (BSH) said: "In many cases, verifying the cause and extent of damage is not easy, causing great pressure on businesses. Therefore, for more than 2 years now, the company has no longer implemented fishing boat insurance, only maintaining insurance for crew members."

When the insurance “shield” is strengthened, fishermen will be more confident in staying at sea. Photo: Xuan Hoang

Similarly, Pjico Insurance Company, Nghe An branch, has not been interested in selling fishing boat insurance for many years. A representative of Pjico Insurance Company, Nghe An branch, said: Selling fishing boat insurance is currently facing many difficulties not only for fishermen, but also for businesses. That is, every year, many ships and boats encounter accidents, while the damage assessment is difficult, because ships and boats encounter accidents at sea, it is difficult to determine the cause. This is also the reason why fishermen find it difficult to complete documents and procedures for compensation settlement.

Need a solution

In previous years, the State had a policy of supporting insurance premiums under Decree 67, helping fishermen reduce their financial burden. But now, this mechanism has ended, forcing ship owners to pay the entire amount themselves. That has further caused the insurance participation rate to drop sharply.

Large capacity fishing vessels are a great asset to fishermen, creating jobs for dozens of workers, so participating in insurance is very important for fishermen. Photo: Xuan Hoang

Mr. Vu Ngoc Chat - Chairman of Quynh Long Fisheries Association (now Quynh Phu commune) said: "If fishing boats are insured, the risks of fishermen will be shared, they can rest assured to stay at sea, contributing to protecting the sovereignty of the sea and islands. The State needs to have a mechanism to support fees, especially for offshore fishing boats. At the same time, insurance companies also need to improve the process to compensate more quickly and transparently."

In fact, in addition to costs, fishermen's understanding of insurance is still limited.

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For a long time, the State has been implementing policies to support fishermen according to Decision 48 of the Prime Minister, including contents such as insurance support for crew members and fuel costs when going offshore. People's knowledge about insurance is not complete, while the application procedures and payment process are still complicated, creating a sense of apprehension. This is the reason why many ship owners are no longer interested in participating in fishing boat insurance.

Mr. Tran Xuan Hoc - Deputy Director of Department of Agriculture and Environment

Practice requires appropriate adjustments to make fishing vessel insurance truly a solid “shield”. First of all, the authorities need to consider restoring or issuing insurance premium support policies for offshore fishing vessels, the force directly involved in protecting the sovereignty of the sea and islands.

In addition, insurance companies must also change their approach. The appraisal and compensation process needs to be quick and transparent to avoid fishermen losing trust. Insurance packages should be designed to be more suitable to the characteristics of fishing, covering even small but frequent risks.

On the other hand, propaganda work also needs to be strengthened. Fishermen must be equipped with knowledge about their rights and obligations when participating in insurance, so that they understand that this is not a burden, but a way to protect themselves, their families and their ships, their greatest assets.

Fishermen stick to the sea, contributing to affirming sovereignty over the sacred sea of ​​the Fatherland. Photo: Xuan Hoang

Nghe An has a long coastline, rich marine resources, and is one of the key provinces in seafood exploitation. However, to turn potential into advantages, ensuring safety and protecting fishermen is a prerequisite. When the insurance "shield" is strengthened, fishermen will be more confident in sticking to the sea, contributing to affirming sovereignty over the sacred sea of ​​the Fatherland./.

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Source: https://baonghean.vn/vi-sao-ngu-dan-khong-man-ma-bao-hiem-tau-ca-10310226.html