...

Azerbaijan creates working group to develop proposals for development of agricultural insurance

Business Materials 7 October 2010 12:53 (UTC +04:00)
Azerbaijan studies international experience in the agricultural insurance sector, the head of the State Insurance Supervision Service under the Ministry of Finance of Azerbaijan Namig Khalilov said.

Azerbaijan, Baku, Oct.6 / Trend, N.Ismayilova /

Azerbaijan studies international experience in the agricultural insurance sector, the head of the State Insurance Supervision Service under the Ministry of Finance of Azerbaijan Namig Khalilov said.

"Now, Azerbaijan has the necessary legislation to promote insurance in agriculture. Each year the public budget allocates a certain amount for insurance against risks in the agricultural sector, but local farmers show little interest in this area," Khalilov said.

According to him, in this regard, only about 10 percent of the total amount of funds allocated from the public budget is used.
"The state commercial insurance company AzerSigorta has been active in informing the rural population and farmers about the insurance services," Khalilov said. "A joint working group has been created with participation of representatives of Ministry of Agriculture and Ministry of Finance to study international experience in this field and prepare appropriate proposals," he said.

The AzerSigorta closed joint-stock company has already submitted proposals to the government to grant additional funds for agricultural insurance. The company's proposals provide for 100-per-cent coverage of agricultural insurance contracts, against the current 50 per cent. The company justifies the need to increase state guarantees by the fact that most farmers claim they do not have the funds to insure their farms.

Amendments to the law on assistance to agricultural development in Azerbaijan, approved in the summer of 2007, increased the share of public funding for agricultural insurance premiums from 25 to 50 per cent.

The average tariff for agricultural insurance is about 1,500 manats per year (five per cent per hectare), while the average profit per hectare of land is estimated at about 25,000 manats per year.

AzerSigorta State Insurance Company was established in 1992 and has 80 insurance offices in all towns and regions of the country.

Oct.6, official exchange rate is 0.8022 manat to $1.

Latest

Latest