(Revised according to State Council Decree No. 666 of February 6, 2016 on Amending Some Administrative Regulations, issued by State Council Order No. 629 on November 12, 2012)
Chapter 1 General Provisions
Article 1 In order to standardize agricultural insurance activities, protect the legitimate rights and interests of parties involved in agricultural insurance activities, improve the risk resistance ability of agricultural production, and promote the healthy development of agricultural insurance industry, this regulation is formulated in accordance with the Insurance Law of the People's Republic of China, the Agricultural Law of the People's Republic of China and other laws.
Article 2 The agricultural insurance referred to in these regulations refers to the insurance activity in which insurance institutions, based on the agricultural insurance contract, assume the responsibility of compensating the insured for property losses caused by natural disasters, accidents, diseases, and other insurance accidents in the planting, forestry, animal husbandry, and fishery production due to the insured subject matter.
The insurance institutions referred to in these regulations refer to insurance companies and legally established insurance organizations such as agricultural mutual aid insurance.
Article 3 The state supports the development of various forms of agricultural insurance and improves the policy based agricultural insurance system.
Agricultural insurance follows the principles of government guidance, market operation, voluntary participation, and collaborative promotion.
The people's governments of provinces, autonomous regions, and municipalities directly under the Central Government may determine agricultural insurance business models that are suitable for the actual situation in their respective regions.
No unit or individual shall use administrative power, position or professional convenience, or other means to force or restrict farmers or agricultural production and operation organizations from participating in agricultural insurance.
article 4 The insurance regulatory authority of the State Council supervises and manages agricultural insurance business. The relevant departments of the State Council, including finance, agriculture, forestry, development and reform, taxation, and civil affairs, are responsible for promoting and managing agricultural insurance in accordance with their respective duties.
Relevant departments and institutions such as finance, insurance supervision and management, land and resources, agriculture, forestry, meteorology, etc. shall establish a sharing mechanism for agricultural insurance related information.
Article 5 Local people's governments at or above the county level shall unify the leadership, organization, and coordination of agricultural insurance work in their administrative regions, establish and improve the working mechanism for promoting the development of agricultural insurance. The relevant departments of the local people's governments at or above the county level shall be responsible for the promotion and management of agricultural insurance in their respective administrative regions in accordance with the responsibilities stipulated by the local people's governments.
Article 6 Relevant departments and institutions of the State Council, as well as local governments at all levels and their relevant departments, shall adopt various forms to strengthen the publicity of agricultural insurance, enhance the insurance awareness of farmers and agricultural production and operation organizations, and organize and guide farmers and agricultural production and operation organizations to actively participate in agricultural insurance.
Article 7 If the agricultural insurance subject insured by farmers or agricultural production and operation organizations falls within the scope of insurance premium subsidies provided by the government, the financial department shall provide insurance premium subsidies in accordance with regulations. The specific measures shall be formulated by the financial department of the State Council in consultation with the competent agricultural and forestry departments and insurance supervision and management institutions of the State Council.
The state encourages local governments to adopt measures such as providing insurance premium subsidies from local finance to support the development of agricultural insurance.
Article 8 The state shall establish a financial supported agricultural insurance disaster risk diversification mechanism, and the specific measures shall be formulated by the finance department of the State Council in conjunction with relevant departments of the State Council.
The state encourages local governments to establish agricultural insurance disaster risk diversification mechanisms supported by local finance.
Article 9 Insurance institutions operating agricultural insurance business are entitled to tax incentives in accordance with the law.
The state supports insurance institutions to establish a grassroots service system that meets the needs of agricultural insurance business development.
The state encourages financial institutions to increase credit support for farmers and agricultural production and operation organizations who purchase agricultural insurance.
Chapter 2: Agricultural Insurance Contracts
Article 10 Agricultural insurance can be purchased by farmers and agricultural production and operation organizations themselves, or by agricultural production and operation organizations, village committees, and other units that organize farmers to purchase insurance.
If agricultural production and operation organizations, village committees, and other units organize farmers to purchase insurance, insurance institutions shall formulate an insurance list when entering into agricultural insurance contracts, detailing the insured's insurance information, and have the insured sign and confirm. Insurance institutions should publicize the underwriting situation.
Article 11 During the validity period of the agricultural insurance contract, the parties to the contract shall not increase the insurance premium or terminate the agricultural insurance contract due to changes in the degree of danger of the insured subject matter.
Article 12 After receiving notification of an insurance accident, insurance institutions should promptly conduct on-site inspections and work with the insured to determine the extent of damage to the insured subject matter. If agricultural production and operation organizations, village committees, and other units organize farmers to purchase insurance, insurance institutions shall publicize the results of the survey and loss assessment.
Insurance institutions may determine the degree of loss of the insured subject matter through sampling or other methods in accordance with the provisions of the agricultural insurance contract. If the degree of loss is determined by sampling, it shall comply with the sampling technical specifications stipulated by relevant departments.
Article 13 If there are provisions in laws and administrative regulations regarding the handling of damaged agricultural insurance subject matter, evidence or proof materials that the damaged insurance subject matter has been lawfully handled shall be obtained when making claims.
Insurance institutions shall not claim the right to the residual value of the damaged insurance subject matter, except as otherwise agreed in agricultural insurance contracts.
Article 14 The insurance institution shall pay the insurance benefits that should be compensated to the insured within 10 days after reaching a compensation agreement with the insured. If the agricultural insurance contract specifies the deadline for compensating insurance benefits, the insurance institution shall fulfill its obligation to compensate insurance benefits in accordance with the agreement.
Article 15 Insurance institutions shall, in accordance with the provisions of the agricultural insurance contract, fully pay the insurance premiums that should be compensated based on the assessed degree of loss of the insured subject matter.
No unit or individual shall illegally interfere with the obligation of insurance institutions to compensate for insurance benefits, and shall not restrict the insured's right to obtain insurance benefits.
If agricultural production and operation organizations, village committees and other units organize farmers to purchase insurance, the claims list should be signed and confirmed by the insured, and the insurance institution should publicize the claims results.
Article 16 If this regulation does not provide for agricultural insurance contracts, the relevant provisions of the Insurance Law of the People's Republic of China on insurance contracts shall apply accordingly.
Chapter 3 Business Rules
Article 17 Insurance institutions operating agricultural insurance business shall meet the following conditions:
（1） Having a comprehensive grassroots service network;
（2） There is a specialized agricultural insurance operating department and corresponding professional personnel;
（3） There is a sound internal control system for agricultural insurance;
（4） There are robust agricultural reinsurance and disaster risk arrangements, as well as risk response plans;
（5） Solvency meets the regulations of the insurance regulatory authority under the State Council;
（6） Other conditions stipulated by the insurance regulatory authority of the State Council.
Except for insurance institutions, no unit or individual shall engage in agricultural insurance business.
Article 18 Insurance institutions operate agricultural insurance business independently and are responsible for their own profits and losses.
Insurance institutions operating agricultural insurance business shall manage it separately from other insurance businesses and account for profits and losses separately.
Article 19 Insurance institutions should fairly and reasonably formulate agricultural insurance terms and premium rates. The insurance terms and rates for insurance types that are subsidized by the government should be formulated by insurance institutions based on fully listening to the opinions of the finance, agriculture, forestry departments, and farmer representatives of the provincial, autonomous region, and municipality people's governments.
The terms and premium rates of agricultural insurance shall be submitted to the insurance regulatory authority for approval or filing in accordance with the law.
Article 20 The reserve assessment and solvency report of insurance institutions operating agricultural insurance business shall comply with the regulations of the insurance regulatory authority under the State Council.
If the financial management and accounting of agricultural insurance business require special principles and methods, specific measures shall be formulated by the finance department of the State Council.
Article 21 Insurance institutions can entrust grassroots agricultural technology promotion institutions to assist in handling agricultural insurance business. Insurance institutions shall sign written contracts with the institutions entrusted to assist in handling agricultural insurance business, clarifying the rights and obligations of both parties, agreeing on the payment of fees, and providing business guidance to the institutions assisting in handling agricultural insurance business.
Article 22 Insurance institutions shall properly preserve the original data of agricultural insurance survey and loss assessment in accordance with the regulations of the insurance regulatory authority under the State Council.
It is prohibited for any unit or individual to alter, forge, conceal, or destroy the original data of survey and damage assessment in violation of regulations.
Article 23 The acquisition and use of insurance premium subsidies shall comply with the specific measures formulated in accordance with Article 7 of these Regulations.
It is prohibited to defraud agricultural insurance premium subsidies through the following methods or any other means:
（1） Fictitiously or exaggerating the insurance subject matter or purchasing multiple insurance policies with the same insurance subject matter;
（2） To offset the insurance premiums that the policyholder should pay or the insurance premium subsidies provided by the government through false claims, false expense reporting, false surrender or retention, misappropriation of insurance benefits, misappropriation of operating expenses, etc.
Article 24 It is prohibited for any unit or individual to misappropriate, withhold, or embezzle the insurance benefits that insurance institutions should compensate the insured.
Article 25 If this regulation does not provide for the operating rules of agricultural insurance, the relevant provisions on insurance operating rules and supervision and management in the Insurance Law of the People's Republic of China shall apply.
Chapter 4 Legal Liability
Article 26 Insurance institutions that do not meet the conditions stipulated in Article 17, Paragraph 1 of these Regulations for operating agricultural insurance business shall be ordered by the insurance regulatory authority to make corrections within a specified period of time and cease accepting new business; Those who fail to make corrections within the prescribed time or cause serious consequences shall be fined between 100000 yuan and 500000 yuan, and may be ordered to suspend business for rectification or have their insurance business license revoked.
Organizations or individuals other than insurance institutions that illegally engage in agricultural insurance business shall be banned by the insurance supervision and management agency, their illegal gains shall be confiscated, and a fine of not less than one time and not more than five times the illegal gains shall be imposed; If there are no illegal gains or the illegal gains are less than 200000 yuan, a fine of not less than 200000 yuan but not more than 1 million yuan shall be imposed.
Article 27 If an insurance institution engages in agricultural insurance business and commits any of the following acts, the insurance regulatory authority shall order it to rectify and impose a fine of not less than 100000 yuan but not more than 500000 yuan; For those with serious circumstances, their business scope may be restricted and they may be ordered to stop accepting new business:
（1） Prepare or provide false reports, statements, documents, or materials;
（2） Refusing or obstructing lawful supervision and inspection;
（3） Failure to use approved or filed agricultural insurance terms and rates in accordance with regulations.
Article 28 If an insurance institution engages in agricultural insurance business and violates the provisions of this Regulation by committing any of the following acts, the insurance regulatory authority shall order it to rectify and impose a fine of not less than 50000 yuan but not more than 300000 yuan; For those with serious circumstances, their business scope may be restricted and they may be ordered to stop accepting new business:
（1） Failure to manage agricultural insurance business separately from other insurance businesses and separately account for profits and losses in accordance with regulations;
（2） Using agricultural insurance business to seek illegitimate benefits for other institutions or individuals;
（3） Failure to apply for approval of agricultural insurance terms and insurance rates in accordance with regulations.
Insurance institutions engaged in agricultural insurance business that fail to submit agricultural insurance terms and premium rates for filing in accordance with regulations shall be ordered by the insurance supervision and management agency to make corrections within a specified period of time; Those who fail to make corrections within the prescribed time limit shall be fined not less than 10000 yuan but not more than 100000 yuan.
Article 29 If an insurance institution violates the provisions of this Regulation, the insurance supervision and management authority shall, in addition to imposing penalties in accordance with the provisions of this Regulation, give a warning to its directly responsible supervisors and other directly responsible personnel, and impose a fine of not less than 10000 yuan but not more than 100000 yuan; If the circumstances are serious, the corresponding qualifications of personnel who have obtained the qualifications for appointment or employment shall be revoked.
Article 30 Those who violate the provisions of Article 23 of these Regulations by fraudulently obtaining insurance premium subsidies shall be dealt with by the financial department in accordance with the relevant provisions of the "Regulations on Penalties and Punishments for Fiscal Illegal Acts"; Those who commit crimes shall be held criminally responsible in accordance with the law.
Those who violate Article 24 of these Regulations by misappropriating, withholding, or embezzling insurance benefits shall be dealt with by relevant departments in accordance with the law; Those who commit crimes shall be held criminally responsible in accordance with the law.
Article 31 If insurance institutions violate the legal responsibilities stipulated in this regulation and there are no provisions in this regulation, the relevant provisions of the Insurance Law of the People's Republic of China shall apply.
Chapter 5 Supplementary Provisions
Article 32 Insurance institutions operating agricultural insurance with policy support shall refer to the relevant provisions of this Regulation.
Agricultural insurance refers to insurance that provides insurance protection for farmers in agricultural production and life, including property insurance for farmhouses, agricultural machinery, fishing boats, and short-term accidental injury insurance related to farmers' lives and bodies, in addition to agricultural insurance.
Article 33 This regulation shall come into effect on March 1, 2013.
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