Subsidised Agricultural Crops Insurance
A present-day agricultural business cannot be launched without taking into account the risks, which the agricultural sector is exposed to.
That’s why agricultural production risks insurance is a mandatory condition for sustainable development of any activity in this sphere.
General Asigurari Company provides the insurance solutions for individuals and legal entities that carry on their activities in the agricultural sector and are aware of potential risks, for the purpose of safe conduct of their business!
The state assumes a part of insurance expenses in compliance with Law no.243-XV on Subsidised Risk Insurance in Agriculture, in order to facilitate access of agricultural producers to insurance products. The amount of subsidies for agricultural crops insurance makes 50% of the total value of insurance premiums.
The Government annually approves through its ordinance the Regulation on the Procedure of Distribution of Resources from the Fund for Agricultural Producers Subsiding. There are specified the insured risks and objects, which the subsidies for insurance premiums are granted for.
There is insured as subsidised: grain, autumn and spring rapeseed and barley, corn (kernels), sunflower, sugar beet, potatoes, tobacco, soya, vegetables, fruit, grapes.
There are insured as not subsidised: other agricultural cultures, except for those ones mentioned above.
Excessive drought, hail, winter, autumn and spring frosts, floods, torrential rains (planting washout), storms (plants lodging and blowing out of the plantings), cereals inflammation, pest (locust) attacks, others.
There cannot be insured:
- Agricultural cultures that have been cultivated for 3 years or more but have not yielded any harvest
- Perennial cultures that are in the fertility phase but have not yielded any harvest during the last 5 years
- Other objects that are not kept in compliance with the agronomical requirements and do not correspond to the criteria set forth by the Insurance Terms and Conditions
Agricultural crops are insured depending on a potential period of risk production.
Relying thereon, agreements on agricultural crops insurance are concluded within the following time frames:
- Autumn crops insurance – up to and including 1 December of the year preceding the harvest
- Spring crops insurance – up to and including 1 June of the year of harvest
- Perennial crops insurance – throughout the year
Insurer’s liability within the insurance agreements shall start at midnight (00:00) of the day following the day of payment of an insurance premium (a part thereof if payment by instalments was arranged and stipulated in the insurance agreement).
In case of agricultural crops, the insurance period shall be deemed to end at the moment of harvest finishing on the insured areas.
The moment of harvest finishing shall be deemed to be crops loading to cases or carrier vehicles, or gathering thereof at special places for the purpose of further transportation/processing.
Remark: In any event, insurance protection (Insurer’s liability) cannot start after occurrence of an insured loss or in case of imminent probability of occurrence thereof, as well as before the time period specified in the insurance agreement (policy).
The insured amount of agricultural crops proposed to be insured are set by the parties as equal to agricultural production costs. Such an amount is calculated for the insured areas by multiplying the insured area, crop per area unit (ha) and price per kilogramme. Such criteria are established by common consent of the parties.
The insurance tariffs are set by the Insurer in compliance with the basic tariffs for agricultural crops insurance, specified in the Terms and Conditions of Comprehensive Agricultural Insurance. The tariffs are negotiated with the Insured, depending on several factors (type of crops, area, insured risks, history of co-operation with the Client and so on), and are then used to calculate the insurance premium.
Agricultural Insurance Department
Tel.: (0-22) 78-38-20
Mob.: 0 680 78 555, 0 783 76 000