BAKU, Azerbaijan, March 13
By Yusif Aghayev – Trend:
The development of the basic insurance modules, tariffs and insurance packages within applying of the new mechanism of agricultural insurance in Azerbaijan is based on international practice, but adapted to the local realities, Chairman of the board of the Azerbaijan Agricultural Insurance Fund Fuad Sadikhov said.
“The development was carried out on the basis of international practice because these types of insurance were poorly developed in Azerbaijan due to the lack of clear statistics on losses within agricultural insurance because of the high losses,” Sadikhov added, Trend reports referring to the fund.
“Taking into account the fact that this mechanism is being applied for the first time in Azerbaijan, insurance rates were maximally adapted to the realities of the local insurance market,” the chairman said. “So, livestock insurance tariffs range from 9 percent to 15 percent in the countries with the developed agricultural insurance system while in our country within 3-4 percent.”
“First of all, 14 modules for crop insurance will be offered for farmers,” Sadikhov added. “These modules will ensure insurance coverage for 85 percent of agricultural products which are grown in Azerbaijan, one for cattle insurance and one for aquaculture insurance.”
“Of course, the range of the offered products and services will be periodically expanded,” the chairman said. “It is planned to complete the entire development period within 30-36 months.”