According to the ministry, the existing insurance mechanism established by the 2009 law has proven to be ineffective and non-functional.
As an example, the Ministry of Agriculture cites the successful experience of European countries: in Cyprus, the insurance coverage level is 100%, in Austria – 78%, in Germany – 43%, and in Spain – 26%.
The new draft law introduces the concept of index insurance, where insurance protection is provided based on a specialized index that may be related to yield, weather conditions, or other standard indicators.
When using index insurance, payments will be made if the recorded parameters during the contract period deviate from the values specified in the insurance policy.
Additionally, the draft law opens up opportunities for insurance in the fields of livestock and aquaculture.
If the law is adopted, the development of subordinate legislation is planned to regulate the procedure for subsidizing, transferring insurance premiums, and the methodology for insuring agricultural crops, as well as the annual approval of the subsidy plan.
Download the document
