Given the low penetration of insurance products in the fisheries sector, the FAO World Review of Capture Fisheries and Aquaculture 2022 has suggested involvement of public and private insurance service providers to undertake proactive measures to turn the tide on fisheries and aquaculture insurance in India.
With weather playing truant in the fisheries sector, the involvement of insurance service providers should be encouraged for the overall competitiveness and efficiency of service delivery in the sector.
The report assumes greater significance when occupational hazards to life and property of fishers and fish farmers are increasingly on the rise with the occurrence of frequent extreme weather events in recent times.
However, there is a general lack of awareness on insurance solutions among fishermen and aquaculture farmers. The insurance coverage for fishing vessels, coastal immovable property and aquaculture units is abysmal in India. Appropriate extension efforts by government agencies /NGO’s/aquaculture societies with due participation from the fishing community could bridge the gap and facilitate marketing of insurance products at the grass root level.
Bundling of schemes
Given the strong network of micro-finance institutions and self-help groups in the coastal regions, the report pointed out that bundling of disaster risk insurance packages with existing micro-credit schemes can be a viable option.
Shinoj Parapppurath, senior scientist, ICAR-CMFRI, Kochi and the author of the India chapter of the report indicated that prohibitive cost of the policies currently on offer is one of the reasons for the low adoption of fishing vessels and asset insurance in the coastal region. Moreover, there are no options to pay premiums in instalments, or in a way that matches fish landing patterns. However, innovative solutions whereby the payment of premiums linking with catch revenues or seasonal incomes could alter the way fishermen approach insurance packages.
A similar scheme is operated by Matsyafed in Kerala whereby the interest on loans is paid back on a daily basis through deductions made on fishing revenue. Such a system can be emulated to collect insurance premium payments in instalments, the report said.
The FAO World review of capture fisheries and aquaculture 2022 has provided a comprehensive account of the present status of insurance in top 10 capture fisheries and aquaculture producers in the world.
The India chapter gives interesting insights into the state of fisheries/aquaculture insurance and it presents a number of strategies and options to protect small-scale fishers from occupational hazards, particularly those arising from climate change-induced extreme weather events.
Mariculture, the future source of marine fish, also requires insurance coverage and to be viable in the long run. New insurance packages covering marine and inland cages, sea farming, brood bank/hatchery units and seaweed farming units should be introduced on a priority basis, the report said.