A thesis submitted in partial fulfillment of the requirement for the degree of Master of Science, School of Engineering and Technology

Thesis (M.Sc.) - Asian Institute of Technology, 1983

This research endeavours to evaluate the impact of the crop insurance scheme which has been in effect in Thailand since 1978. Though there are some obvious limitations in the study, various methodologies are employed to ensure maximum correctness, i.e., the simplification of questions in the questionnaire, field observation, free talks with farmers' leaders, officers in charge of the CI Scheme and other informed persons. So far it is found that the farmers gained benefits in terms of risk reduction in crop cultivation, accessibility to financial institutions whereby farmers could lessen their costs of credit, encouragement to adopt better cropping techniques and stimulating mutual help among farmers. Aside from that the farmers expressed their satisfaction with the programme and the understanding of the CI issue was not entirely satisfactory and needs further educational promotion. A Set of 15 variables is found to contribute in the success of the previous implementation. They are the premium rate, farming experience, increase in the amount of credit, indebtedness, age, etc. These variables, to some extent, also affect the decision of the farmers whether to continue CI or not. It is recommended that CI be expanded in order to provide more services and benefits to a greater number of farmers as well as to spread the risk over wider areas. The group (area) insurance type is recommended since it can reduce the effort, cost in operation and partially prevent moral hazard. The premium rate seems to be unavoidable and hence government support is needed to keep it at a level acceptable to the farmers. Unfortunately it is necessary to point out that this study could not successfully investigate and recommend a more appropriate organizational structure of the CI scheme.