BAKU, Azerbaijan, April 1
By Yusif Aghayev - Trend:
The Law of the Republic of Azerbaijan "On Insurance Activity" will be supplemented by a new norm related to the agricultural insurance system, Trend reports on April 1.
This bill was discussed on March 31 at an online meeting of the parliamentary committee for agrarian policy.
The process of working out a new article to the law was stipulated by entering of the Law on Agrarian Insurance adopted on June 27, 2019 into force.
Thus, after the addition of a new article, the Law on Insurance Activity will cover the agricultural insurance sector. The bill was recommended for discussion at the next plenary meeting of the Azerbaijani parliament.
Azerbaijani President Ilham Aliyev signed a decree on the application of the law "On Agricultural Insurance" and the creation of the Agricultural Insurance Fund, a non-profit legal entity that ensures the organization, development and stability of the agricultural insurance system in Azerbaijan, as well as the formation of a management structure and controls its activity, on August 19, 2019.
The Azerbaijani Cabinet of Ministers approved the Charter of the Agricultural Insurance Fund on December 14, 2019.
The agricultural insurance system is a system of legal relations based on the acceptance and distribution of risks in the field of protecting the property interests of producers of agricultural and aquaculture products through the conclusion of voluntary insurance contracts.
Agricultural insurance covers crops, livestock and aquaculture products.
The new mechanism of agricultural insurance envisages the establishment of a management body, which will be established by insurance companies under the Agricultural Insurance Fund.
The implementation of the executive powers of the Fund, the implementation of insurance contracts, the organization of the preparation and support of its own electronic information system will be the main functions of the management company.
The new agricultural insurance mechanism is expected to be applied from the second half of 2020.