The farmer from Yershov city (Saratov oblast) applied for the government subsidy insuring non-existing crops. He (Yershov-Agro) submitted false documents about insuring winter crops at the area of 300 ha and signed insurance contract with regional office of insurance company “Podderzhka” (“Support”).
After that the farmer sent the documents to the department of agriculture of the Ministry of Agriculture to obtain insurance subsidy to compensate a part of insurance premium paid. The Ministry allocated 38835 roubles: from oblast budget — 8858 RUR, from federal budget — 29977 RUR. After getting subsidy funds at his account, the farmer spent them for his own personal expenses. The prosecutor office opened a criminal case. Investigation is currently in process, reports sarprok.ru
Comments by www.agroinsurance.com: The similar cases happen often with the programs of subsidized crop insurance. The basic instrument to prevent crop insurance fraud should be fields survey by the representatives of insurance companies. The subsidized program designed – Ministry of Agriculture (Federal agency for subsidized crop insurance) – should allocate subsidies only if the application papers include field survey reports. In such a case the insured and the authorized insurance company, member of the subsidized crop insurance program, will be liable for submitting fause information. Besides, the farmers signing the crop insurance contracts should be informed about their liability on fraudulent actions.
Russia – Farmer cheated with crop insurance subsidies