ArmInfo. Agriculture Ministry has developed a concept of agriculture risks insurance and will submit it to consideration of the government. Minister of Agriculture Sergo Karapetyan told ArmInfo saying that introduction of the system of agricultural insurance may take several years.
The minister said that the agricultural sector loses about 30 billion drams every year in average. In the current year, hail has already caused 7 bln drams damage to the sector. In this light, the best way to avoid such risks is agricultural insurance, but so far no companies in Armenia want to provide insurance against agricultural risks.
The current system of insurance legislation of Armenia enables introducing the following agricultural insurance lines: insurance of harvest, animals, industrial buildings and premises that are part of the property insurance (Article 7.2.8 and 7.2.9 of the RA Law On Insurance and Insurance Activity). At present, the operating insurance companies have licenses for property insurance, but no company provides agricultural insurance.
Earlier in May 2011, then prime minister Tigran Sargsyan said introduction of agricultural insurance is inexpedient in Armenia, as the sector comprises just small farms, while farmers will hardly make insurance payments. Nevertheless, KfW Bank allocated 400,000 EUR this year for development of a concept of agricultural insurance for Armenia and Georgia.
RUB | 4.23 | 0.01 |
USD | 387.32 | -0.31 |
EUR | 416.10 | 1.18 |
GBP | 486.40 | 1.36 |
CAD | 283.52 | 1.05 |
JPY | 25.30 | 0.30 |
CNY | 53.49 | -0.04 |
CHF | 426.85 | 1.63 |