Ministry of Agrarian Policy initiates Agrarian Risks Insurance Agency founding in 2008/09
28.11.2007 08:31 "Agro Perspectiva" (Kyiv) —
As to Agricultural Risks Insurance National Program draft concept (elaborated by Ministry of Agrarian Policy), Ministry of Agrarian Policy has proposed to create State Agency for Agricultural Risks Insurance in 2008/09 As to Ministry calculation, Agency founding requires ≈ UAH44 mn State budget allocation. As to Program, Agency is supposed to create informational/consultative base and methodics/educational literature publishing center; Agency is expected to serve as guide for agrarians in sphere of insurance disputable questions. Agency consultants are planned to work in many Ukrainian regions. Besides, mutual insurance agricultural partnerships and agricultural insurance cooperatives (to function as insurers) are also suggested to be founded. As to draft concept, Ministry of Agrarian Policy proposes to create All-Ukrainian Insurance Pool in order to unite country biggest insurance companies experienced in classic types of insurance; as well, Ministry proposes to form scientific/methodics base open for companies interested in agricultural insurance. As to draft concept authors, Pool creation will make it possible to form crop insurance efficient system with agricultural producers/insurers interests taken into account. As to Program, 4-level coverage of agrarians losses (as 50%, 60%, 70% and 80% of necessary insurance payments) is to be introduced in 2010/12 to assure more accessible/wide insurance of agricultural producers. Program stipulates these insurance premiums partial compensations will be made at cost of State budget agrarians insurance subsidies, foreseen as total UAH250-450 mn MT. Ministry of Agrarian Policy initiates establishing of agrarian market entities partial compensations as much as 50% of insurance premiums entities have paid for 2008 crop destruction risks insurance. 2007 State budget stipulates UAH50 mn for cheapening of insurance premiums paid by agrarians (2006 State budget – UAH10 mn).
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