Page 39 - 2018 OUTLINE OF THE MINISTRY OF THE INTERIOR REPUBLIC OF CHINA

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Cooperative & Civil Associations

based on a 6% to 8% monthly insurance amount of the insured and has been further approved by the
Executive Yuan. In accordance with Article 12 of the Farmer Health Insurance Act, the insured shall take

on 30% of the premium of this Insurance and the government shall subsidize for the remaining 70%. As for
the insurance premiums subsidized by the government, in a municipality, the central competent authority
shall take on 40% and the municipal government 30%; in a county/city, the competent authority shall take

on 60% and the county/city government 10%.

2. The Insured

By the end of 2017, within the farmer health insured units, there were 287 farmer associations and
a total number of 1,174,749 insured; the average age was 66.43 years old. Among them, 51.26% of the
insured (602,213 people) had an average age of 69.62, and were members of the farmer associations while
non-members accounted for 48.74% (572,536 people) with an average age of 63.08. Overall, 56.8% of the

insured (666,754 people) were 65 years of age or over and 691 of them were 100 years or over.

3. Regulatory Amendments and Research Development

(1) Regulatory Amendments

As there is no age limit for the Farmer Health Insurance, the number of insured is aging, indirectly
leading to more claims for disabilities, funerals and burials more than any other social insurance system
and becoming a heavy financial burden. Furthermore, the premium rate and monthly premiums are

relatively low, while the proportion of governmental subsidy is considerably high; this does not comply
with the self-financing principle in social insurances. In order to establish a fair and efficient farmer
insurance system, the Farmer Health Insurance should evaluate and amend all current financial and
systematic issues.

(2) Research Development

According to Article 44 of the Farmer Health Insurance Act, "In case a deficit occurs upon annual
settlement, the competent authorities that deal with the affairs regarding this Insurance shall audit
and allocate funds to make up for the deficit, and an application may be submitted to the central
competent authority for subsidization. Upon receipt of the aforementioned application, the central
competent authority shall immediately examine the causes of the deficit." In order to efficiently

manage expenses, protect farmers' rights and obligations, and further consider the country's future

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