Insurance risks are something that needs to be predicted
- Анастасия Максюк
- No Comment
- Adjuster services, Agro Sity Group, Agro survey services, Agrosurer, Agrosurvey, crop insurance, survey companies Ukraine, survey services Ukraine, surveyor Ukraine
The realities of the present and unpredictable weather conditions dictate their rules. One of these rules is agro-insurance – a powerful financial tool for protecting farmers. In Ukraine, the procedure of insurance of agrarian products will reduce the material damage caused by the loss of crop due to natural disasters.
According to clause 22 of Art. 6 of the Law of Ukraine “About Insurance” dated 07.03.1996, №85 / 96-ВР, insurance of agricultural products can only be voluntary. Consequently, it is only the producer of agricultural products who can decide on the insurance of their products, based on their needs and possibilities.
There are several types of insurance for crops: for the entire period of cultivation, for the period of hibernation and for the spring-summer period.
Certainly, the procedure for insurance of agricultural crops is not easy, but it allows you to protect yourself from the insurance incidents and the risks that will endear your hard work. What are the insurance risks? Why do they foresee insurance incidents? What exceptions to insurance cases can limit the terms of insurance?
What are insurance risks and insurance incidents?
Insurance risks are certain events that have signs of probability and accidental occurrence. These are the events for which insurance is being carried out (Article 8 of the Law of Ukraine “About Insurance”). The most common insurance risks insured by crops are:
• Fires, hailstones, storms, hurricanes, tornadoes, lightning strikes.
• Storm, floods, long rains, rocks.
• Land landslides, avalanches.
• Drought, dryland.
• Earthquakes, dehydration.
• The development of diseases and the spread of pests that have become a consequence of the above-mentioned points.
• Illegal actions of third parties
An insured event is an event that occurred as a result of insurance risks stipulated by the agreement or legislation. Upon the occurrence of an insured event, the insurer is obliged to pay the insurance indemnity (Article 8 of the Law of Ukraine “About Insurance”).
What are the limitations of insurance incidents?
Occasionally there are cases that are not subject to insurance indemnity. Such cases are exceptions and limit the insurance of crops, even if they result in significant losses. These restrictions are clearly stated in the insurance contract and cover:
• Conducting on the insured area any military actions, strikes or rallies.
• Consequences of terrorist acts, as well as fires and explosions associated with them.
• Consequences of man-made disasters.
• Pollution of the environment by radiation and toxic substances.
• Failure to comply with crop growing technologies.
• Failure to comply with the conditions of storage of explosive substances on the farm and other.
WARNING! The insurance case must be documented! Insurance indemnities are made only on the basis of certified insurance cases!
Insurance contracts are concluded between the manufacturer of agricultural products and the insurer in accordance with the insurance rules and the current legislation of Ukraine.
In Ukraine, there is a steady-positive dynamics of the agribusiness market. Every year, the number of agricultural producers insuring crops is increasing.
According to an analytical study conducted by IFC, the main crops insured in 2017-2018 were: winter wheat, winter rye, winter rape, winter barley. One contract was concluded for the insurance of vineyards. Between the farmer and the Agrarian Fund for the period of wintering in 2017-2018, 32 insurance contracts were concluded.
In 2018, only Lugansk region received insurance payments totaling UAH 757839.5. Payments were made by two insurance companies: AXA and ROM.
IFC also calculated that the growth of insurance premiums in 2018 was 2%. At the beginning of 2019, this growing trend is only confirmed.
The Agro Group Surveyors are independent experts who will examine the crops, evaluate the collateral and transparency of the deal, provide information for the preparation of an insurance contract that will meet all the conditions of the insurer and the insurance company.