In 2021, an emergency regime was declared in many regions of our country in connection with soil and atmospheric drought, floods and other adverse weather events. In this regard, new agricultural crop insurance programs have been developed.
“Since 2022, the conditions for crop insurance in Russia have changed. Along with the multi-risk crop insurance program, the country's crop growers now have another policy available - crop insurance in case of an emergency. On January 1, a full regulatory and legal framework came into force, which allows a new type of insurance to be carried out within the framework of the agricultural insurance system with state support, ”said the President of the National Union of Agricultural Insurers Korney Bizhdov, commenting on the insurance conditions of the agro-industrial complex in the beginning season.
“Starting this year, farmers are given a choice: farms can insure crops or plantings in case of loss either under a multi-risk program, or under a program of insurance against damage from a declared natural emergency, or using two programs at the same time,” explains the President of the NSA. - In the first case, insurance coverage will be triggered if the yield of the insured agricultural crop as a whole for the farm decreases compared to the average five-year level under the influence of natural hazards specified in the policy. Then the insurance payment will be calculated based on the cost of the lost crop. In the second case, the farmer will receive an insurance payment only if an emergency regime is declared in the region in connection with large-scale crop losses caused by any natural phenomena. Payments for insurance against emergencies will be calculated for each hectare, on which the official commission for liquidation of emergency situations will establish the loss of crops or plantings, and correspond to the direct costs of its cultivation. "
On January 1, the last official document entered into force in Russia, on which the possibility of implementing in practice new conditions of insurance coverage of agricultural crops in case of emergencies, provided for by changes in the profile legislation in 2021, came into force: this is the Decree of the Government of the Russian Federation of December 23, 2021 N 2423 on approval requirements for insurance companies that can provide such insurance. All other documents regulating the conditions of insurance against emergencies and its subsidies were previously approved and agreed by authorized government agencies in the second half of last year.
Agricultural insurers-members of the NSA with at least 5 years of experience in agricultural insurance, having a capital of at least 3 billion rubles and having ratings from the Expert RA agency at least ruA- are admitted to crop insurance against emergencies risks.
The official list of agricultural insurers who will be entitled to insure crops in the event of an emergency will be published by the Ministry of Agriculture of Russia within 20 working days from the date of the issue of Resolution No. 2423.
“According to the NSA, at least 10 out of 18 insurance companies-members of the NSA will meet the requirements of the Government. Of these, at least 6-7 will take part in insurance of crop production for the risk of emergencies, and this will provide insurance coverage in all crop regions of the Russian Federation ", - said the President of the NSA Korney Bizhdov.
“Insurance of crop production in case of emergency is a fundamentally new approach to protecting crop production risks, developed in Russia, taking into account the growing threats of climatic instability and changes in agro-climatic conditions in the regions. This tool expands the capabilities not only of individual farms, but also of the regions for agro-industrial complex risk management. Its implementation will also become a fundamentally new experience in the field of partnership between the state and the insurance industry to protect the risks of the agro-industrial complex, and the practice of 2022 will be of key importance, ”stressed the President of the NSA Korney Bizhdov.