523 contracts signed in Armenia within the framework of a pilot  program for agricultural risk insurance

ArmInfo. As of March 20, 2020, in Armenia, as part of the pilot program for agricultural risk insurance, 523 insurance contracts were concluded in Armenia. The  press service of the Ministry of Economy of the Republic of Armenia  reported this on March 24.

According to the source, March 25 is the deadline for signing  agreements on insurance of risks associated with apricot and vineyard  gardens, April 20 is the deadline for insurance of risks associated  with hail risk for apple orchards, and May 1- insurance of risks  associated with fires and hail for cereals. The term for signing  frost insurance contracts expired on February 21.

The Ministry of Economy of Armenia calls on the beneficiaries to  purchase insurance policies before the deadlines, as farmers of the  regions who will not be insured will themselves compensate for the  financial damage caused by natural disasters. In the case of the risk  of hail and fire, the state subsidy is 50%, in the case of the risk  of spring frosts - 60%.  Business entities wishing to participate in  the program can contact the National Agricultural Insurance Agency  (https://aina.am/), as well as the Ingo Armenia, Rosgosstrakh-Armenia  and Sil Insurance companies that participate in the program.  According to ArmInfo, the German bank KfW allocated a grant in the  amount of 5.3 million euros for the pilot program for the  implementation of agricultural insurance system in Armenia. The main  grant amount of 4.8 million euros was supposed to be directed  exclusively to subsidizing the purchase of insurance policies by  farmers. The remaining amount of 515 thousand euros was spent to  cover the costs associated with consulting. At the same time, the  Government of the Republic of Armenia, represented by the Ministry of  Agriculture, will come out with a co-financing of the program in the  amount of 5 million euros.  The Climate Investment Funds 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.  Consulting will be handled by a consortium  of three companies. For the creation of the Bureau for National Risk  Management in the field of agricultural insurance, retraining of  personnel and the formation of the institution of an appraiser, the  development of by-laws and the services of a consulting company 1.9  million euros were allocated.