Korea Farm Machinery Insurance Subsidy & Coverage Gap Calculator

Compare two quotes for one machine using Korean 2026 eligible-premium subsidies, confirmed local support and incident limits, deductibles and uninsured losses.

Separate premium subsidies from retained accident losses.

Compare two annual quotes for one machine under Korean 2026 farm machinery insurance rules. Use insurer quotes; premiums are not estimated from machinery prices. Initial values are unentered.

Official sources checked: 2026-10-09 · All amounts in KRW

1. Machine and subsidy eligibility

Machine type

National eligibility and restrictions

Check registration, ownership / management, farmer age 19+ or agricultural entity, altered safety equipment and unrepaid subsidy recoveries. Confirm the registration exception for participating local agricultural cooperatives separately.

Insurer-confirmed subsidy category

The 70% rate requires confirmed basic-livelihood recipient or near-poor eligibility. Age alone does not qualify.

Required: third-party bodily injury, property damage and own bodily injury I or II, each for one year. Aerial sprayers require only the two third-party coverages. Machinery damage and carried produce are optional.

2. The same incident for both quotes

Confirm the incident arithmetic model

Confirm recognized loss, the limit for this incident, the deductible and its order. Fault, injury grades, further reductions and other insurance or third-party compensation are not calculated here. Do not enter the same loss twice.

Machinery loss-prevention / reduction costs and costs to preserve or exercise compensation rights can be paid independently of the sum-insured limit. Do not combine them with ordinary loss under one limit; select separate review and confirm with the insurer.

Machinery damage loss (KRW)

Confirmed loss for this incident. Enter zero for unaffected items.

Third-party bodily injury loss (KRW)

Confirmed loss for this incident. Enter zero for unaffected items.

Third-party property damage loss (KRW)

Confirmed loss for this incident. Enter zero for unaffected items.

Own bodily injury I / II loss (KRW)

Confirmed loss for this incident. Enter zero for unaffected items.

Carried agricultural produce loss (KRW)

Confirmed loss for this incident. Enter zero for unaffected items.

★ A · Farmer premium

Unconfirmed / withheld

Gross premium 0 KRW
National subsidy Unconfirmed / withheld · Local subsidy Unconfirmed / withheld

★ B · Farmer premium

Unconfirmed / withheld

Gross premium 0 KRW
National subsidy Unconfirmed / withheld · Local subsidy Unconfirmed / withheld

Subsidy conditions to review

A: Confirm registration, ownership / management, age / entity, safety equipment and unrepaid recoveries

Confirmed eligible premium: 0 KRW · Premium awaiting subsidy confirmation: 0 KRW

Confirm no local subsidy or the additional amount before the farmer premium is calculated.

B: Confirm registration, ownership / management, age / entity, safety equipment and unrepaid recoveries

Confirmed eligible premium: 0 KRW · Premium awaiting subsidy confirmation: 0 KRW

Confirm no local subsidy or the additional amount before the farmer premium is calculated.

Retained loss for the same incident

Total scenario loss: 0 KRW. Payout references use the confirmed simple arithmetic model; they are not approved claims.

Incident totals are withheld. Confirm the model, recognized loss, incident limits and deduction order; ask the insurer to review total loss, proportional or overlapping compensation separately.

★ A · Retained scenario loss: Unconfirmed / withheld

Subsidy, payout, deduction, limit and uncovered loss by coverage A
Coverage	National subsidy	Payout reference	Deductible loss	Limit gap	Uninsured / excluded	Retained loss
Machinery damage	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld
Third-party bodily injury	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld
Third-party property damage	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld
Own bodily injury I / II	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld
Carried agricultural produce	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld

★ B · Retained scenario loss: Unconfirmed / withheld

Subsidy, payout, deduction, limit and uncovered loss by coverage B
Coverage	National subsidy	Payout reference	Deductible loss	Limit gap	Uninsured / excluded	Retained loss
Machinery damage	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld
Third-party bodily injury	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld
Third-party property damage	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld
Own bodily injury I / II	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld
Carried agricultural produce	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld	Unconfirmed / withheld

A/B differences and next steps

Farmer premium B − A: Unconfirmed / withheld
Retained loss B − A: Unconfirmed / withheld
Premium plus this retained loss B − A: Unconfirmed / withheld

Differences require both quotes to be confirmed. Negative means B is lower. Premium plus this retained loss assumes this incident occurred; it is not an annual expected cost or a product recommendation.

Ask the insurer for eligible premiums and how the KRW 100 million / 120% limits were applied.
Align required coverage, incident limits, deduction order and local support.
Use unconfirmed CSV rows as a consultation checklist.

Review NH product and terms

Compare the premium subsidy and the coverage gap

A farm machinery insurance quote contains two different decisions: how much premium you will pay and how much loss you could retain after an accident.
A higher subsidy does not give every coverage the same limit or remove its deductible.
This calculator compares two annual quotes for one machine under Korean 2026 rules, using actual quoted premiums rather than estimating them from the purchase price.

It is useful for machinery owners, farmers reviewing a renewal and family members helping a parent read the paperwork.
Apply the same incident to both quotes so a change in price can be considered alongside a change in cover.
The English interface uses the same calculation functions as the Korean interface; it does not apply another country’s insurance system.

A worksheet for your next conversation

Download coverage premiums, eligible subsidy premiums, support amounts, farmer premiums and retained scenario losses as CSV.
Unconfirmed items retain their status and can form a consultation checklist.
The worksheet is not an application, an underwriting decision or an approved claim.

Korean 2026 subsidy conditions and restrictions

The MAFRA guideline posted on 2026-08-04 lists 18 machine types: power tillers, tractors, combines, speed sprayers, field management machines, rice transplanters, aerial sprayers including drones, wide-area sprayers, balers, agricultural excavators, powered carriers, loaders, lifts, elevated work platforms, forklifts, power sprayers, shredders and ride-on mowers.
Confirm the actual equipment classification and ownership or management arrangement.

Standard 50% / low-income 70%

The standard national rate is 50%.
Eligible basic-livelihood recipients and near-poor farmers receive 70%.
Apply the rate to confirmed eligible premiums for bodily injury liability, property damage liability, own bodily injury and carried agricultural produce.
Older age alone does not establish the preferential category.

Machinery: KRW 100 million / 120%

Machinery-damage support is restricted to the premium for sum insured up to KRW 100 million and a surcharge factor within 120%.
Obtain the insurer’s eligible premium after these restrictions.
The calculator does not assume that premiums scale proportionally with sum insured.

Ordinary machines require third-party bodily injury, third-party property damage and own bodily injury I or II, each for one year.
For aerial sprayers only the two third-party coverages are compulsory for subsidy purposes.
Machinery damage and produce cover are optional; their absence can still leave the entire corresponding loss with the farmer.

Confirm agricultural registration, ownership or management, the farmer age 19+ or agricultural-entity condition, altered safety equipment and unrepaid subsidy recoveries.
The registration exception for local agricultural cooperatives participating in rental services requires separate confirmation.
Check equipment-specific safety requirements, including tractors manufactured from 2020 and power tillers from 2021.
NH’s product guidance excludes municipally owned rental machinery from national support.

Understand each input

Gross and eligible premiums

Coverage premium means the quoted amount before national subsidy.
Eligible premium is the insurer-confirmed basis before multiplying by the subsidy rate, not the subsidy payment.
For machinery premium 600,000 KRW and eligible premium 400,000 KRW, standard support is 200,000 KRW.
The eligible basis cannot exceed the coverage premium.

Local support and endorsements

Enter only the confirmed local amount additional to national support.
A local announcement’s combined support percentage may already include the national portion.
Keep separate legal-cost or rental-cost endorsement premiums outside the five coverage premiums; these extras are not automatically included in national support.

Recognized loss for one incident

Separate machinery, third-party bodily injury, third-party property damage, own bodily injury and produce losses.
Do not count the same loss twice.
The tool does not assess fault or calculate injury-grade benefits; use the scenario amounts reviewed with the insurer.

Effective limit and deductible

Enter the limit applicable to this incident after relevant residual value, injury-specific limits or remaining annual limits.
Enter the actual KRW deductible after percentage, minimum / maximum and deductible waivers; enter zero when a waiver is confirmed.
Select an unlimited limit explicitly.
A zero limit means no available compensation limit.

Amounts are whole KRW and accept commas.
A blank input is not confirmed zero.
The KRW 1 trillion input ceiling is a technical limit, not a policy or subsidy ceiling.
Reset restores the unentered, unconfirmed state.

Subsidy and retained-loss formulas

Farmer premium

Gross premium P = insured coverage premiums + other endorsement premium.
National subsidy N = confirmed eligible premium total E × 50% or 70%.
Farmer premium U = P − N − confirmed additional local support.
A confirmed eligibility, compulsory-coverage or period failure gives zero national support; unconfirmed conditions withhold the amount.
If support exceeds the gross premium, farmer premium is withheld so combined national / local support can be checked.

Deduct, then apply the limit

Payout reference R = min(max(loss L − deductible D, 0), limit H).
Deductible loss = min(L, D).
Limit gap = max(L − deductible loss − H, 0).
The farmer retains net loss above the limit.

Apply the limit, then deduct

Payout reference R = max(min(loss L, limit H) − deductible D, 0).
Limit gap = max(L − H, 0).
Deductible loss = min(L, H, D).
The order can change the result.
Verify which amount is subject to deduction in your issued terms.

Retained loss equals the input loss minus the payout reference.
Payout, deductible loss, limit gap and uninsured / excluded loss together equal the input loss.
A deductible larger than the loss cannot make retained loss exceed that loss.
Uninsured or confirmed excluded loss has zero payout and full retention; unconfirmed coverage does not establish zero payout.

Machinery deductible waivers and costs outside the limit

Annex 5 of the guideline waives the machinery deductible for total loss or when the insurer’s compensable amount reaches or exceeds the full sum insured.
The effective incident limit entered here can differ from the full sum insured, so reaching this limit does not automatically establish a waiver.
Costs to prevent or reduce loss and to preserve or exercise compensation rights can be paid independently of the sum-insured limit.
Combining those costs with ordinary loss under one limit can change the result; ask the insurer to review total loss and costs outside the limit separately.
The two formulas compare confirmed simple net-loss scenarios and are not universal NH claim formulas.

Worked example: two fictional quotes

Assume one tractor, confirmed standard eligibility and one-year cover.
The same incident causes machinery loss 10,000,000 KRW and property damage 15,000,000 KRW, with other losses zero.
These are fictional premiums and limits, not market rates or recommended cover; the example button explicitly loads them.

Fictional quotes A and B: premiums, subsidies and retained loss for the same incident
Item	Quote A (KRW)	Quote B (KRW)
Gross premium	850,000	970,000
Confirmed eligible premium	600,000	720,000
National subsidy 50%	300,000	360,000
Additional local subsidy	100,000	100,000
Farmer premium	450,000	510,000
Scenario payout reference	18,000,000	24,700,000
Retained scenario loss	7,000,000	300,000
Premium plus this retained loss	7,450,000	810,000

Interpret the 60,000 KRW premium difference

A uses machinery limit 8,000,000 / deductible 500,000 KRW and property limit 10,000,000 / deductible 100,000 KRW, with deduction before limits.
It retains 7,000,000 KRW.
B uses machinery limit 12,000,000 / deductible 200,000 KRW and property limit 20,000,000 / deductible 100,000 KRW; it retains 300,000 KRW.
B costs 60,000 KRW more in farmer premium but retains 6,700,000 KRW less for this incident.
With confirmed low-income 70% eligibility, A’s national subsidy becomes 420,000 KRW and farmer premium 330,000 KRW.

Step-by-step use

Prepare quotes, policy documents and wording.
Confirm machine type, ownership / management, registration, safety equipment, subsidy eligibility and the standard or low-income category.
Align insured coverages and their one-year periods.
Enter premiums before national support; missing cover should not be mistaken for a cheaper equivalent quote.
Ask the insurer for each eligible premium, especially the machinery KRW 100 million / 120% restrictions and excluded endorsements.
Confirm either no local support or the exact additional amount.
Check budget availability and payment timing separately.
Split one incident into distinct losses.
Confirm cover, exclusions, effective incident limits, deductible amounts and deduction order.
Select separate review for complex compensation.
Read farmer premium and retained loss, save CSV and request revised quotes on matching conditions, focusing on large differences and unconfirmed rows.

Practical decision situations

Buying expensive machinery

A higher sum insured does not necessarily increase subsidized premium proportionally.
The KRW 100 million subsidy boundary and the residual-value compensation limit are different concepts.
Do not substitute purchase price for every policy limit.

Helping a parent renew

Last year’s farmer payment may reflect different support, local budgets or cover.
Get new coverage-level quotes and update both labels and confirmation states.
Premiums can be recalculated independently of machinery value.

Removing a coverage

Removing optional cover can reduce premium but leave its entire loss with the farmer.
Removing compulsory cover also affects national support conditions.
Review both subsidy and retained loss after changing the insured checkbox.

Considering rental or custom work

Rental and custom-work fees are separate contracts.
Do not confuse municipal machinery’s lack of national support with the registration exception for participating agricultural cooperatives.
Review the rental operator’s insurance and the user’s responsibility in the actual rental terms.

Your premium payment is not your accident deductible

Farmer premium is the amount paid for insurance after confirmed support.
An accident deductible is retained recognized loss under the terms.
A limit gap is loss beyond the applicable limit, while uninsured or excluded loss is outside that coverage.
A higher premium subsidy rate does not automatically reduce these accident-loss components.

Premium plus this retained loss assumes the selected incident occurs.
It does not include accident probabilities, multiple accidents or a long-term distribution of losses.
It is neither annual expected cost nor a policy return or prediction that an accident will happen.
Consider the farm’s capacity to absorb losses when reviewing a cheaper quote’s limits.

Withheld results and limitations

Unconfirmed eligibility, period, category or eligible premium withholds national support.
Unconfirmed local support withholds farmer premium while preserving confirmed national results.
One confirmed quote can display its own results.
A/B differences require both results; unconfirmed is not equivalent to no support or no payout.
Total loss, proportional compensation, other insurance, third-party payments, fixed benefits, multiple victims and multiple incidents need separate review.
Do not use a death-benefit limit for an own-injury scenario.
Distinguish a deductible above loss, exhausted annual limits and exclusions.
Do not fill limits or minimum / maximum deductibles with assumed market averages.
Display and CSV amounts are rounded to whole KRW as arithmetic references.
Confirm actual subsidy settlement, claim rounding and payment timing with the insurer and local authority.

Frequently asked questions

Does every endorsement receive 50% support?

No.
Only confirmed eligible premiums are included.
Separate legal-cost or rental-cost endorsements are not automatically subsidized.

Does sum insured above KRW 100 million remove all support?

Separate machinery’s premium-support restriction from eligibility for the whole contract.
Use the insurer’s eligible premium reflecting the KRW 100 million / 120% boundaries; do not prorate premium yourself.

Does 70% apply automatically to older farmers?

No.
Confirm basic-livelihood recipient or near-poor eligibility.
Age or ownership of a particular machine does not establish preferential support.

Is own bodily injury compulsory for aerial sprayers?

The 2026 guideline requires only third-party bodily injury and property damage for aerial sprayers.
Other machine types also require own bodily injury I or II.
Confirm one-year periods for each coverage.

Can I enter a local announcement’s combined support rate?

The input is the confirmed additional local amount in KRW.
Separate national support already included in a combined rate to avoid deducting it twice.

Are the loss results actual claim payments?

No.
They are simple scenarios using confirmed inputs and deduction order.
Fault, injury grades, residual valuation, other compensation, underwriting, claims approval and complex endorsements require insurer review.

What if only support or only incident cover is confirmed?

The two confirmation processes are independent.
Confirmed results remain available while unknown totals and comparisons are withheld, and CSV keeps the review states.

Does the tool automatically value machinery or quote premiums?

No.
Enter confirmed quotes, eligible premium bases, losses, limits and deductibles.
It does not assess market prices, insurance rates, discounts, surcharges, underwriting or subsidy approval.

Official sources and update boundary

Sources were checked on 2026-10-09; the calculation uses the Korean 2026 program guideline.
For machinery insurance, that guideline cites Article 15 of the Act on Improvement of Quality of Life for Farmers and Fishers and Development Promotion of Rural Areas.
The National Law Information OPEN API returned current law ID 009633 / MST 287991, promulgated and effective 2026-07-07.
The 50% / 70% rates and machinery restrictions come from the program guideline, not a percentage stated directly in that article.

The safety-insurance system reference was also checked: Article 4 of the Act on Safety Insurance and Prevention of Accidents for Farmers and Fishers, ID 012228 / MST 255855, effective 2024-05-01, and Decree Article 2, ID 012464 / MST 279875, effective 2026-01-01.
Recheck future annual guidelines, machine types, support scope, local budgets and the issued policy wording.
The source-check date is not a statutory effective date or the policy’s starting date.

Request quotes on matching coverage conditions

Review farmer premiums, missing cover, incident limits and deduction order.
Use the CSV to ask about eligible premium bases and additional local support, then compare revised quotes.
Use the separate tools for rice yield-reduction insurance or machinery rental schedules.

Compare machinery insurance Rice crop insurance Machinery rental and custom work

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