In this publication explanations on questions are made: Who can insure winter crops? From what it is possible to insure crops? What documents are necessary for the conclusion of the contract? It is necessary to pay attention to what moments at the conclusion of the contract?
To the person who works at the earth, is what to lose
Agricultural industry in the territory of Ukraine – this daily opposition to every possible risks which at once can destroy results of a hard work. Yield losses from adverse weather conditions in separate years can reach 50 %.
Only insurance can provide food security of Ukraine
Therefore the Government pays much attention to agrarian insurance.
One of steps on a way of realization of the mechanism of insurance is the Law of Ukraine About the state support of agricultural industry of Ukraine in which compensation mechanism from the government budget of 50 % of the insurance payment brought by the agricultural producer on contracts of insurance is put.
On these purposes from the budget in 2006 10 million hryvnias, in 2007 – 50 million, including were allocated for insurance of winter crops in the Crimea – 1493,6 thousand, for 2008 200 million from which 100 million were thrown on the state purchases are allocated. For the spring-and-summer period 18 million the hryvnias which have remained of 82 million were mastered will allow to increase twice volumes of insurance of winter crops for rewintering in comparison with last year.
Who can insure winter crops?
Any agricultural producer, the farmer whom the state report (form No. 7-SX) and consequently, keeps the necessary account hands over can make it and can provide the documents defined by item 5 of the Resolution of Cabinet council of Ukraine No. 302 from 02.04.2008 in the commission of the district state administration for receiving compensation.
From what it is possible to insure crops?
Crops of winter crops can be insured on a case:
a) death (more than 50 % of plants) and cultivation, a disking, resowing or podseva cultures from the risks of rewintering defined by the Law of Ukraine About the state support of agricultural industry of Ukraine (the form 111-08 contract). Cost of the actual expenses for crops and care of a franchize deduction is thus compensated;
b) on a case of death of crops (more than 70 % of plants) or damage from 50 to 70 % of plants. At damage the part of expenses for crops and the leaving, defined by the table attached to the contract (form 111-07) is paid.
Insurance will cost
50 % of insurance payment, but no more than 2,5 % from cost of crops come back to an economy when providing necessary documents.
For the conclusion of the contract it is necessary:
1. The application for insurance (the form undertakes on the Internet or in insurance company).
2. Certificate of planned expenses for 1 hectare of crops.
3. Card scheme (the standard description) fields.
4. Technological card of cultivation of agricultural culture
5. The inspection certificate of crops (it is made by the representative of insurance company together with the representative of an economy).
6. Photos of fields (it is made by insurance company).
At the conclusion of the contract it is necessary to pay attention on:
1. License existence.
The license costs not cheap. Agricultural insurance is the most difficult and risky look, experts in this area should be engaged in it. Insurance companies and without this type of insurance have an annual gain of receipts of insurance payments in 30 and more percent therefore licenses and who has have not all, tries to develop agricultural insurance first of all in less brave regions, than the Crimea.
2. Reinsurance existence.
Any insurance company, even ours, being the leader of the insurance market of Ukraine, can’t start insurance, previously without having concluded contracts in which conditions of insurance and reinsurance tariffs with the reliable overcautious person are accurately specified. If payments of insurance compensation exceed receipt of payments, the overcautious person increases a tariff and, respectively, reduces, if payments are insignificant. There can be such insurance companies which at own risk sign some contracts at a low tariff and will hope that happens nothing, and if there will be an insurance event, can be and will carry out of the obligations at the expense of decrease in level of profitability of insurance activity. Or payment of insurance compensation will be made on the basis of a judgment. To a word known saying comes: Not such we rich to buy cheap things. In agricultural insurance, as in one type of insurance, "penny-wise and pound-foolish".
3. Franchize.
Part of a damage which isn’t paid by insurance company, call the franchize. On the average in agricultural insurance the franchize makes 30 % from the size of a damage.
Our insurance company establishes the franchize on each separate field. That is, if one or the other tens fields perishes, the economy will receive insurance compensation equal to a damage minus 30 %, i.e. minus the franchize. Some insurance companies apply the franchize on separate agricultural culture, that is if 30 % of crops are lost, the economy hasn’t the right to count on payment of insurance compensation. In case of insurance of several agricultural cultures on low tariffs with application of 30 % of the franchize the agricultural producer can’t receive insurance compensation even in case of death of the whole culture. Agricultural producers to decide to sign to you on what conditions insurance contracts!
4. Compliance of the contract to the standard.
HACK "Oranta" accepts on insurance crops only after providing all necessary documents, careful survey of fields, pictures of a field, receiving permission of Head office on the conclusion of the contract of insurance that guarantees to the agricultural producer the conclusion of the contract of insurance in full accordance with the current legislation of Ukraine. I will remind that those agricultural producers who signed the insurance contract according to Law requirements, automatically get the right to the grant from the government budget of Ukraine. In Oranta insurance company the long experience of practical insurance of agricultural risks that is noted by full compliance of our contracts of insurance to all requirements of the Law is stored.
However some insurance companies in a pursuit of insurance payment sign contracts in only 15 minutes, without any survey, but thus include in them the point, saying that if further it will be revealed that crops were in bad condition or the economy didn’t adhere to technology, insurance compensation will be reduced. Today in Ukraine actually about 90 % of farms on separate fields break technologies of cultivation of agricultural cultures. The conclusion arises: dear agricultural producers, attentively coordinate contract provisions of insurance before to put under it the signature.
Additional information, contract form, application form, the list of crops can be received, having addressed in insurance company or on our site on the Internet.
We hope for mutually beneficial effective cooperation not only on insurance of winter crops, but also on any kinds of insurance.
N.Puchkov, leading expert of SD NASK "Oranta".