Nur-Sultan
June 8, 2020
A new insurance system in the agro-industrial sector has come into effect in the Republic. The insurance operator is The Fund for financial support of agriculture – a subsidiary of KazAgro Holding.
In contrast to the mandatory form of insurance in crop production that has been in effect since 2004, the new one has several innovations.
First, insurance in the agricultural sector is now voluntary.
Secondly, there are no restrictions on industries - you can insure any direction within the agricultural sector.
Third, state support is provided in the form of subsidizing insurance premiums. It is aimed at stimulating agricultural producers and reducing the cost of insurance contracts by half: 50% of the insurance premium will be subsidized by the state, for which about 2.5 billion tenge has been allocated from the national budget this year.
When developing the new system, the problematic issues of mandatory insurance in crop production were taken into account, - says managing Director-member of the Board of JSC "Fund for financial support of agriculture" Askar Kaliyev. - So, in order to protect the interests of agricultural producers, only insurance companies licensed by the Agency of the Republic of Kazakhstan for regulation and development of financial markets will be able to work in the system.
Three international reinsurance companies with an "A" rating on the global insurance market are involved in the system. They will reinsure the risks that domestic companies take on. This will ensure guaranteed payments in the event of insurance risks.
All procedures, starting from the conclusion of the contract and ending with payments, will be performed on The qoldau electronic platform.kz based on the electronic digital signature of the agricultural producer. Automation of processes will minimize the human factor and ensure transparency of work.
Today, the Fund for financial support of agriculture has approved insurance products based on the index of moisture in the soil – its lack and overabundance, - comments Askar Kaliyev. – In other words, agricultural producers can insure their crops against summer droughts and autumn rains. Grain crops (wheat, barley, corn, oats) and oilseeds (sunflower, rapeseed, flax) are subject to insurance. For monitoring, information will be received from remote earth sensing sources. The moisture level is monitored on a constant basis, and the occurrence of an insured event is recorded automatically.
After receiving notifications in the Qoldau system's personal account.kz and personal e-mail about the occurrence of an insured event, the policyholder (agricultural producer) uses the EDS to make an application for payment to the insurer (insurance company), which provides the payment.
As practice shows, more than 60% of insurance cases are due to lack of moisture, that is, drought. In this regard, and taking into account the completion of the sowing campaign, the insurance product against drought becomes particularly relevant.
In order to insure against the risk of lack of moisture, the agricultural producer must conclude an insurance contract before June 15 of this year. The insurance period will cover 3 months - from may 15 to August 15, 2020.
Insurance contracts against excess moisture should be concluded before August 15, and insurance coverage will be valid from August 15 to October 15, 2020.
The list of insurance products will expand with the development of the insurance system in the agro-industrial complex, taking into account the relevance and demand in the market.
For all questions, please contact the Fund for financial support of agriculture JSC by phone +7 (7142) 53 39 16.
Press service of JSC "Fund for financial support of agriculture"
Phone: 8 800 080 3505