The premium of agricultural insurance shall be paid before the contract takes effect. However, this shall not apply where the competent authority otherwise designates the payment method.

The competent authority may provide a subsidy to the proposer’s premium for the agricultural insurance. The rate of subsidy shall be determined according to the subject matter insured and the type of insurance. During the five years after the enforcement of this Act, the upper limit shall be fixed at 75%; from the sixth year of the enforcement, the upper limit shall be 60%. However, the foregoing shall not apply to mandatory insurance.
The competent authority may adjust the amount of cash relief provided for in the Agricultural Natural Disasters Relief Regulations based on the subject matter insured, insurance type and the recipient and rate of premium subsidization.
The recipient, rate, amount, application procedure, issuance, rescission of subsidization and other matters to be complied with for the premium subsidization specified in Paragraph 1 shall be prescribed by the competent authority.

The competent authority shall assist the insurer in the development of agricultural insurance products.
The competent authority may provide subsidization to the surcharge incurred by the insurer in the handling of agricultural insurance or provide incentive rewards.
The recipients, qualifications, review procedures and basis, subsidization and rescission of subsidization or incentive rewards and other matters to be complied with for the subsidy or incentive rewards specified in the preceding paragraph shall be prescribed by the competent authority.