RUSSIA: since July 1, agroinsurance significantly modified so that farmers can insure crops in case of loss as a result of emergency

6 July 2021 —
Since July 1, agroinsurance in Russia has been significantly modified, which marked a new stage in the development of the agroinsurance system as a partner of the state in protecting the agro-industrial complex, said Korney BIJDOV, President of the National Association of Agriculture Insurers (NAAI), writes ASN.

After the law comes into force, by-laws and methodological acts regulating the new type of insurance should be adopted, and in the fall of this year, farmers will be able to insure winter crops against the risk of emergencies, including from loss during wintering period, the head of the NAAI explained.

"The main advantage of the new type of insurance is that to receive insurance compensation, the farmers will not need to record all dangerous events and their impact on crops together with insurance companies during the agricultural season, and then determine the yield depression. It will protect farmers in case of loss of crops because of natural phenomena, if they are large-scale, affecting the whole region", said Korney BIJDOV. "Compensation payments for the risk of emergencies will be significantly accelerated - there is no need to wait for the results of the harvest, and the procedure for determining damage and documentation of payments will be simplified", he said.

"Another feature is that at crop insurance for 2022, including winter sowing this year and spring sowing in the future, the state will pay all insured farmers 80% of the cost of the policy. Since the cost of insurance against emergencies is expected to be reduced by several times in comparison with the current crop insurance, these costs will be insignificant, which is especially important for small farmers", the NAAI President stressed.