The implementation of the insurance program for grain and oilseed crops, as well as pastures, has begun. The insurance operator in the agro-industrial complex is the Agrarian Credit Corporation.

Insurance contracts can be concluded in the Agroinsurance information system on the website www.qoldau.kz

CROP INSURANCE

You can insure crops of wheat, barley, oats, corn, sunflower, rapeseed and flax. Insurance is available for farmers of Akmola, Aktobe, East Kazakhstan, West Kazakhstan, Karaganda, Kostanay, Pavlodar, North Kazakhstan regions.

It is possible to conclude insurance contracts against moisture deficiency in the soil for grain crops until April 16, for oilseeds – until April 30.

The drought insurance period is divided into three phases. If the crops are insured for the period from May 15 to August 14 (three-phase product), the cost of the insurance policy will be 4.8% of the insured amount. If the insurance period lasts from June 15 to August 14 (two-phase product), the tariff will be equal to 3.2% of the insured amount.

State support is provided for the products in the form of subsidizing insurance premiums – the insurance policy is cheaper for agricultural producers by 50%.

The onset of drought is determined based on the indices that the insurance company calculates based on historical data on soil moisture. When calculating for the next season, weather data for each district is taken into account, including for the previous year. Thus, the index values change annually. Therefore, potential policyholders need to pay attention to the new index values when concluding insurance contracts.

"According to the results of two years of crop insurance against drought, agricultural producers were paid 1 billion 327.3 million tenge, - says the Chairman of the Board of JSC "Agrarian Credit Corporation" Almat Ashirbekov - At the same time, the amount of the insurance premium paid by farmers amounted to 241.5 million tenge, another 241.5 million tenge was contributed as state subsidies."

PASTURE INSURANCE

The operator has approved a new product - pasture insurance - based on the pasture biomass deficit index. Pastures with annual and perennial grasses can be insured. The insurance period is from May 1 to August 30. The insurance rate is 3.2%. It is necessary to insure pastures until April 16.

Monitoring of fields is carried out by remote sensing sources of the earth, which record the relative amount of water in plants and provide indications of the biomass deficiency index.

The product will also be subsidized by insurance premiums in the amount of 50%.

As noted by Almat Ashirbekov, all procedures, starting from the conclusion of the contract and ending with insurance payments, are carried out on an electronic platform. Automation of processes eliminates the influence of the human factor and ensures their transparency.

Insurance companies licensed by the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Markets work in the system. Also, three international reinsurance companies with an "A" rating on the world market have been involved in the work, which reinsure the risks assumed by domestic companies. This will ensure guaranteed payments to companies that have insured their assets.

For reference:

JSC "Agrarian Credit Corporation" is a part of the National Management Holding "Baiterek". The corporation's work is aimed at promoting the sustainable development of the agro-industrial complex of the republic by forming an affordable and effective financing system through the involvement of private financial institutions and improving the competencies of agro-industrial entities.