The Ministry of Agriculture of the Russian Federation continues to improve the mechanism of agricultural insurance
The Ministry of Agriculture and Food of the Republic of Tatarstan informs that the Ministry of Agriculture of Russia, in order to further develop the agricultural insurance mechanism, has developed a draft amendment to the Federal Law "On State Support in the Sphere of Agricultural Insurance".
The innovations are designed to make the agricultural insurance mechanism more accessible. Taking into account the importance of ensuring the property interests of Russian farmers with insurance coverage, the department expects to agree on and introduce these amendments this year, which will make it possible to start implementing it in 2021.
The bill provides for a number of innovations designed to make the agricultural insurance mechanism more accessible, including for small agricultural enterprises. In particular, it is proposed to introduce an additional type of insurance for agricultural producers against natural emergencies (ES). The new type of insurance contracts provides for insurance reimbursement to farmers of the costs of crop production in case of loss of crops due to an emergency after the official announcement by the regional authorities of the emergency regime.
The Ministry of Agriculture of Russia proposes to increase the amount of subsidies for the payment of a part of the insurance premium for the risk of loss of agricultural crops, as well as the loss of plantings of perennial plantings as a result of natural emergencies. Thus, the level of subsidies can be expanded from 50% to 80%, which should increase the interest of farmers in insurance programs with state support.
Also, within the existing association of insurers (NSA), it is envisaged to create a new fund of compensation payments in case of emergency, which will be made if the insurer is unable to meet its obligations.