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“We developed a systematic approach to promote the implementation of the agro-insurance project in the country. The project will last for three years. " stated Levan Davitashvili
"I think, that agricultural insurance is a challenging project facing difficulties in many countries. There is no universal successful model of this project, however, the component of agro-insurance has been gradually improving each year in Georgia. We launched the agro-insurance project in 2014, furthermore, we made significant changes, which led to the improvement of the project. Insurance companies, as well as farmers have already gained an experience how to get benefits through insurance services; However, we should deal with the existing challanges. First and foremost, we have developed a systematic approach with regards to the agro-insurance project. The three year project will allow farmers to use their income from all crop sales to insure and withstand the risks in the coming year. Unfortunately, there are risks in the agriculturural sector.
We address to all farmers to take advantage of the insurance program to reduce risks and minimize losses. Our co-financing is very important, according to the experts, about 70% of co-financing for small farms is one of the good practices at the international level "- said Levan Davitashvili while presenting anti-crisis plan for agricultural sector.
The changes were made in the agro-insurance program, according to which, in case of perennial crop insurance, farmers will have an opportunity to insure their crop for three calendar years. Under the agro-insurance program, state co-financing for all crops, except vines, covers 70% of the value of the policy, and 50% on vines.
The agricultural insurance policy covers insurance risks such as: hail, floods, hurricanes, autumn frosts. In 2020, the budget for the program will amount to 9 million GEL. This year, it is planned to issue more than 15,000 insurance policies and insure more than 12,000 hectares of agricultural land. The beneficiary of the agro-insurance state program can be any natural or legal person who owns or uses the agricultural land registered in the National Agency of Public Registry.
The insurer or landowner must also be registered in the Farmers / Farms Register. A farmer can insure both annual and perennial crops.
From April 15, 2020, farmers who are willing to get engaged in the 2020 agro-insurance program should apply to 7 insurance companies: Aldagi, GPI Holding, Euroins Georgia, Ardi, Alpha, TBC Insurance, and New Vision Insurance, through which they will be able to purchase a package of agro-insurance policy. The farmer submits all necessary documents to the insurance company, pays a share of insurance premium value for his insurance coverage and the policy will be valid after the expiration of the waiting period (4 days).