The volume of insurance payments made for cotton fields in Azerbaijan has exceeded 2.5 million manat ($1.47 million) in the last three years, Chairman of the Board of the Agricultural Insurance Fund Fuad Sadigov said.

He made the remark at the 2nd International Agricultural Innovation Forum, held on the third day of the 18th Azerbaijan International Agriculture Exhibition (Caspian Agro) and the 30th anniversary Azerbaijan International Food Industry Exhibition (InterFood Azerbaijan) in Baku.

The official noted that each year, the Agricultural Insurance Fund insures nearly 25,000 hectares of cotton fields.

"In the last three years, the volume of insurance payments made for cotton fields has exceeded 2.5 million manat. The insurance premiums collected from farmers amounted to a total of 1.5 million manat ($882,000).

In the preceding biennium, the aggregate quantum of indemnity disbursements for loss mitigation has culminated at 15 million manat (equivalent to $8.82 million). During the initial quadrimester of the current fiscal year, the transactional throughput surpassed 3 million manat, equating to approximately $1.76 million. These stipulations have been instituted in response to the indemnity disbursements from the preceding interval.

In 2025, the payments for damages will exceed last year's figures by at least two times," Sadigov added.

The agricultural insurance system in the Republic of Azerbaijan is founded on the principles of public-private collaboration, as stipulated by the law “On Agricultural Insurance.” The Agricultural Insurance Fund is a state-established non-commercial legal organization that administers insurance payouts by assuming risks. The Management Company is a cooperative insurer formed by insurance firms possessing a non-life license, facilitating the execution of insurance contracts. The agricultural insurance system is structured on the ideas of voluntary insurance.

Source - Trend News Agency