ArmInfo. For the first time in Armenia, pilot agricultural risk insurance program has been launched. On February 28, after the government meeting, answering the question of ArmInfo, the First Deputy Minister of Agriculture of Armenia Gegham Gevorgyan said.
The project is being carried out in experimental mode in 5 regions of Armenia - in Ararat, Armavir, Vayots Dzor, Tavush and Aragatsotn. About half a billion drams will be allocated for financing the program. The process of concluding contracts has already started, and the insurance companies involved in the process will deal with the sale of insurance policies.
In mid-February, it was announced about the start of training courses for obtaining an appropriate certificate of agricultural damage insurance. Upon completion of the course, an exam will be held, according to the results of which, certified participants will have the opportunity to cooperate with insurance companies of Armenia.
At the same time, Gegham Gevorgyan refrained from calling those insurance companies that have documented their desire to cooperate with the Ministry of Agriculture in the framework of the agricultural insurance program. The Deputy Minister laid this "mission" on the shoulders of insurance companies, which may themselves announce their participation in the program in the coming days.
As ArmInfo informed earlier, a pilot program on agro-insurance is planned to be implemented in Armenia. "Nothing like this has been done before - the system provides for 100% compensation for farmers' losses," Gegham Gevorgyan said in the end of November 2018. "All farmers are unequivocally in favor of the introduction of the program," Gevorgyan said, stressing that the program provides for subsidized insurance contributions. State subsidies will amount to 60-65% of the cost of the insurance policy, and the farmer will have to pay 30-35 thousand drams per 1 hectare. NARMA - National Agroinsurance Risk Management Agency (the name, as Gevorgyan pointed out today, was changed, but the functions remained the same) will be the tool to evaluate the consequences of natural disasters. An institute of damage evaluators will be created, the main insurable risks selected. NARMA will also develop insurance products.
According to the Ministry of Agriculture, the German KfW bank should allocate a grant of 5.3 million euros for the implementation of a pilot program for the implementation of the agricultural insurance system in Armenia. The principal amount of a grant of 4.8 million euros should be directed solely to subsidize the purchase of insurance policies by farmers. The remaining amount of 515 thousand euros will go to cover the costs associated with consulting. At the same time, the RA Government represented by the Ministry of Agriculture will co-finance the program in the amount of 5 million euros.
Climate Investment Fund will also provide 2 million euros, of which 200 thousand euros will be used to subsidize the purchase of insurance policies, and 1.8 million euros - for consulting services. A consortium consisting of three companies will handle consulting.
Together with these companies, the Ministry of Agriculture and the Central Bank are preparing the first pilot project on agricultural insurance in Armenia. 1.9 million euros will be allocated for the establishment of NARMA, the retraining of personnel and the formation of an institute of an appraiser, the development of by-laws and the services of a consulting company.
At the same time, it should be noted that today agriculture losses from natural disasters in the amount of about 12 billion drams (about $ 25 million) are compensated by the state, however, in the case of insurance, these compensations will be assigned to insurance companies.
