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Already in 2019 it is necessary to have an agricultural insurance system

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13.08.2018
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The government should not leave residents of villages alone in overcoming the consequences of hail. This opinion was voiced by the First Deputy Prime Minister of Armenia Ararat Mirzoyan on his Facebook page after visiting the Armavir region, where he visited the villages affected by the hail.

As Mirzoyan noted, on August 12 he visited the villages of Bambakashat, Mgrashat, Alashkert and other communities of the Armavir region, where a crop and infrastructures were severely damaged two days ago.

"We are sure that the government should not leave residents of villages alone in the process of overcoming the consequences of this disaster, and tomorrow, work will start on assessing the damage, after which the government will discuss the extent of possible assistance to peasant farms." At the same time, structural solutions are needed, and we will work consistently on that, in order to have an agricultural insurance system, effective anti-hail stations, anti-hail grids next year, "he wrote.

According to the Ministry of Agriculture, the German bank KFW will allocate a grant of 5.3 million euros for the implementation of the pilot program for the introduction of agricultural insurance in agriculture. Of these, 4.8 million euros will be used solely to subsidize the purchase of insurance policies. The remaining amount of 515 thousand euros will cover the costs associated with consulting. The Armenian government, represented by the Ministry of Agriculture, will co-finance the program in the amount of 5 million euros.

The Climate Investment Funds will also provide 2 million euros, of which 200,000 euros will be used to subsidize the purchase of insurance policies and 1.8 million euros for consulting services. Consulting, according to the representative of the Ministry of Agriculture, will be engaged in a consortium, which consists of three companies. Together with these companies, the Ministry of Agriculture and the Central Bank of Armenia will prepare the first pilot agricultural insurance project in Armenia in 2018, within the framework of which it is planned to set up the National Agroinsurance Risk Management Agency for National Agricultural Risk Management (NARMA).

The creation of the Bureau, the retraining of personnel and the formation of the institution of an appraiser, the development of by-laws and the services of a consulting company will be allocated 1.9 million euros. Bureau will be the tool by which the impact of natural environmental disasters will be assessed. An institute of damage appraisers will be established, the main insurable risks will be selected. NARMA will also develop insurance products. As Arutyunyan pointed out, at the initial stage, insurance will affect fruits and vegetables and grain products. Covered risks in the first stage, possibly, will include damage from hail, and then, perhaps, from frost and drought.

According to the head of the Ministry of Agriculture, Artur Khachatryan, starting from the beginning of 2019 it is planned to implement pilot agricultural insurance programs in Armavir, Ararat and Shirak regions.

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