The damage caused by the hail will be reimbursed for beneficiaries benefiting from the Agroinsurance program
The damage caused by the hail will be reimbursed for beneficiaries benefiting from the Agroinsurance program. At this stage, over 1200 reports are received; damages are being actively calculated. The damage assessment process was studied by Mr. Paata Shekeladze, Director of Agricultural Project Management Agency, Mr. Irakli Kadagishvili, Governor of Kakheti and representatives of Insurance Company Aldagi in the affected villages. As Mr. Paata Shekeladze said: The agro-insurance project is definitely a beneficial instrument in preventing damages caused by natural calamities. The governmental support in such cases allows farmers to minimize those risks inherent to the operations in agro industry.
This year, a share of government in purchasing an insurance policy is 70% for all crops and 50% - for vine. A natural person or a legal entity may participate in the agro-insurance project provided that they possess, use or factually own no more than 5 He of agricultural land (for wheat crops no more than 30 He). Also, any beneficiaries owning more areas of agricultural lands, when insuring 5 He, may enjoy governmental co-financing.
According to data of May 2019, in Georgia, 6,737 policies were issued under the agro-insurance project; 3,582 beneficiaries were included in the project; a governmental subsidy of the insurance premium amounted to 3,568,646 GEL. The land of 6,982 He in total was insured and a cost of the crops was 71,978,204 GEL. The Governments financial support gave an additional stimulus to entrepreneurs to develop and extend their production. The Agriculture Project Management Agency is implementing a unified agro-project that is designed for long-term development and aims at establishing an environment that will promote competitiveness in the industry, stable growth of quality production and introduction of international standards of food safety.