The government’s administration reported that program on harvest insurance will be carried out in this year as well. Draft of the corresponding order was approved at the government’s meeting today. According to the draft, “upper margin of insurance tariff will be defined. At that, the government will cover 60% of insurance’s tariff, while 40% will be paid by the insurer”, the government said.

For the first time, the similar program was carried out as a pilot one in 2014. As the government reported, the program was launched on September 1 and in 2 months, 15,622 policies were issued, resulting in insurance of harvest of 143.698 million lari. In total, according to the Agriculture Ministry, over 21,000 policies were issued in 2014, through which 34 different crops on total area of 19,000 ha, having total value of over 150 million lari, were insured.

As the Minister Otar Danelia noted, within the agreement between the Ministry and German development bank (KfW), first phase of study is completed and certain recommendations on agroinsurance model were provided by BFC Consulting. “At this stage, we have envisaged all objective and important recommendations”, he declared.

The government said that some amendments were made in the new program, in particular, conditions for reimbursement were specified, as well as procedures and terms of insurance contract and terms of insurance premium’s subsidizing.

Source - http://www.sarke.com/