The Ministry of Agriculture is the developer of this draft law, indicating in the accompanying materials that the existing agricultural insurance mechanism established by the 2009 law has proven to be ineffective and insufficiently viable.
The Ministry draws attention to the positive experience of European countries: for example, in Cyprus, the insurance coverage is 100%, in Austria — 78%, in Germany — 43%, and in Spain — 26%.
As part of the new draft law, the concept of index insurance will be introduced, where insurance protection is based on specially developed indices, such as yield index or weather index, as well as other indices provided for by standard insurance rules.
When using this type of insurance, payments will be made in the event of deviations in the indicators of insured agricultural objects from the conditions specified in the insurance policy.
Additionally, the draft law will create opportunities for insuring both livestock and aquaculture.
If the law is approved, a number of subordinate regulations will be developed regarding the procedure for subsidization, payment of insurance premiums, methodologies for insuring agricultural crops, and the annual approval of the subsidy plan.
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