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Ministry of Environmental Protection and Agriculture of Georgia Ministry of Environmental Protection and Agriculture of Georgia

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Agricultural Insurance Program is continued

  In 2019, Georgian Government continues to implement an agro insurance program. The decision was made at the government session today. The state participation rate still covers 70% for all agricultural crops, except vine, on vine – agro insurance will cover 50%. Within the program, the insurance policy provides a coverage of following risks: hail, flooding, storm, autumn frost. All natural or legal entities, which own agricultural land, including area comprising of no more than 5 hectares have right to take part in the agro insurance program (in case of wheat harvest insurance, the land area shouldn’t exceed 30 ha).

 

This restriction does not engage agricultural cooperatives. In case of agricultural cooperative, the bonus payable by the Agency per insurer / beneficiary shall not exceed 50,000 GEL. Furthermore, within the program, the beneficiary will be able to insure 5 hectares from his owned land area if it is above 5 hectares and receive co-financing of state. The harvest will be insured in case if it is grown on the land plot that is registered in the LEPL National Agency of Public Registry and the Farmers' Register.

In 2019,  the insurance policy limit for red wine grape crop was increased and amounts to 15,000 GEL per hectare (last year's limit of 10,000 GEL). 'The increase in grape prices in 2018 applied to both red and white grapes resulted in the relative growth of the limit.The time period starts from the date of issuing the insurance policy and covers 4 days.

All insurance companies licensed in the territory of Georgia might be engaged in the agro insurance program.

The agro-insurance state program started in 2014 and has been implementing for 5 years. The project aims to develop the insurance market in the agricultural-sector, promote agricultural activities, maintain income and reduce risk for those persons who are engaged in the farming activities.
In the frame of the Agro Insurance Program in 2014 - 2018:

• 81,453 policies have been issued

• Insured area includes 71,413 ha

• In total, gel 551,366,395 worth of harvest has been insured  

• The state has subsidized gel 33,854,463 from the amount that should be paid by the farmers for insurance service.

The compensation for 5 years amounted to 35,343,213 million gel.

 

 

 

   
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