The Russian Prosecutor General’s Office estimates damages from violations on the agriculture insurance market at around 1 billion rubles, business daily Kommersant reported Thursday. The prosecutors have inspected insurance companies focusing on operations in the agriculture sector and discovered over 280 violations, including illegal refusals on insurance indemnity and unfair reductions in payments, Kommersant said. "One of the reasons of insurance companies’ improper actions is the lack of adequate control from the Federal Service for Financial Markets," prosecutors said in the conclusion on the results of the inspection.
A spokesperson for the financial markets watchdog said that the service planned to work out steps to correct the prosecutors’ criticism, the daily reported. A government source told Kommersant that the inspection showed the incompleteness of the previous agriculture insurance system, while an amended law on insurance operations in the agriculture sector came into effect in January 1.
Source - PRIME (Moscow)