A Mechanism of Agricultural İnsurance with state support started in Azerbaijan

State support to agricultural insurance mechanism established in Azerbaijan officially started its activity. On November 4, the Minister of Agriculture, Inam Karimov met with the delegation of Turkey Ministry of Agriculture and Forestry and TARSIM agricultural insurances organization, who are on a visit to Azerbaijan in the administrative building of the Agrarian Insurance Fund. At the meeting, the sides were discussed views on the implementation of agrarian insurance mechanism in Azerbaijan and the formation of insurance mechanism based on Turkish experience.

Then, an event dedicated to the signing of the first insurance contract with state support was held in Azerbaijan. Inam Karimov, Minister of Agriculture, Bekir Engurulu, representative of Turkey Ministry of Agriculture and Forestry, Serpil Gunal, head of TARSIM agricultural insurances organization, officials of the Central Bank of Azerbaijan, Agrarian Insurance Fund, farmers and entrepreneurs were attended in the event.

Speaking at the event, Minister Inam Karimov noted that the military aggression of Armenia had no impact on the agricultural sector: “As a result of this attack, many large and small cattle were killed in the villages located on the contact line, feed stocks were burned, harvesting was restricted on tens of thousands of hectares of crops, and agricultural equipment was destroyed. In general, the ongoing military aggression affected the lives of more than 100,000 farmers. The Azerbaijani army, under the leadership of Supreme Commander-in-Chief, Ilham Aliyev, continues successful counter-terrorist operations to liberate our lands from occupation. In the future, it is planned to develop agriculture on liberated lands. In this regard, calculations and preparation of an action plan have already begun”.

The Minister added that as a result of systematic reforms carried out under the leadership of the head of state in the agricultural sector, state support for farmers and investors, the agricultural sector has become one of the fastest growing sectors of the country's economy: “One of the important issues in terms of ensuring sustainable development of the agricultural sector is the agricultural insurance mechanism. The agricultural insurance system in Azerbaijan is based on the experience and support of the agricultural system of the fraternal Republic of Turkey. Through agricultural insurance, farmers will be able to insure farm animals, acreage and crop production, as well as aquaculture against the most urgent risks on preferential terms. In other words, the agricultural insurance mechanism launched today is another manifestation of state support to the agricultural sector. The introduction of the agricultural insurance mechanism, in addition to supporting farmers and entrepreneurs, will lead to the transformation of agriculture into a safer business sector, increase investment in this area and in general make an important contribution to the development of agriculture”.

A board member of agricultural insurances organization (TARSIM), Bekir Engurulu, representative of the Turkey Ministry of Agriculture and Forestry said that agricultural insurance will facilitate farmers' access to finance by insuring their risks and create conditions for more sustainable development of agriculture.

In their speeches, Serpil Gunal, head of the TARSIM agricultural insurances organization, Parviz Ilyasov, chairman of the Azerbaijan Farmers Association, and Habil Ibrahimli, a farmer from the Tartar district, noted that the agricultural insurance mechanism will create great advantages for farmers, and the expansion of state support will have a positive impact on the development of agriculture.

It should be noted that the first agrarian insurance contract with state support in the country was signed on November 3 between the Agrarian Insurance Fund and local farmer Habil Ibrahimli in Bayimsarov village of Tartar district, which was subjected to continuous military aggression of Armenia. According to this agreement, 50 heads of cattle breeding owned by the farmer are insured against current risks. 50% of the insurance amount will be paid by the state, and the farmer will pay the remaining amount in installments.

Recall that the mechanism of agricultural insurance operates in accordance with the law “On Agrarian Insurance”. Agricultural risks will be insured by the Agrarian Insurance Fund established by decree of the President of Azerbaijan Ilham Aliyev No. 809. This mechanism can be used to insure agricultural plants and products, farm animals and aquaculture products - fish products.

At the initial stage, 1-7-year-old dairy cows and buffaloes, 14 types of plants (wheat, barley, corn, potato, sugar beet, orange, lemon, mandarine, tea, paddy, tobacco, grape, hazelnut, cotton), as well as  fish grown in swimming pools will be insured through agricultural insurance. In the future, the list of insurance items and risks covered by agricultural insurance will be expanded.

Within the framework of agricultural insurance, the United Agricultural Insurance company (OJSC) will be engaged in concluding contracts with policyholders, receiving their requests and regulating events.