Improving the Safety of Rural Communities: Safety Insurance Acts for Farmers and Fishers and Prevention of Work Accidents

Abstract

The purpose of this study is to analyze the Act on Safety Insurance for Farmers and Fishers and Prevention of Work Accidents related to the agricultural production crisis and suggest some ways to improve safety insurance for farmers based on the act. The Safety insurance for farmers and its related law have various problems. First, due to the nature of policy insurance entrusted to the private sector, reverse selection and moral hazard problems occurred due to information asymmetry, and the difference in the real burden ratio of policy-holders depending on the subscription area caused regional equity problems. Second, the law stipulates causeism, but it is operated as enumerationism through the enforcement ordinance of the law and insurance terms and conditions. Third, there is no independent council on safety insurance for farmers, and there was also a lack of organization and interest in safety insurance for farmers within the Nonghyup. This study suggests three improvement ways. First, strengthening safety insurance for farmers as social security-type policy insurance. Second, promoting the integration of the Act on Safety Insurance for Farmers and Fishers and Prevention of Work Accidents and Agricultural and Fishery Insurance Act while separating agricultural and fishery parts. Third, establishing a comprehensive safety institution in the agricultural sector.