The Ministry of Agriculture and Food Industry initiated consultations with a view to solving the problems related to insurance in agriculture given the more often risks that affect crops, such as drought, hail and frost. The institution aims to effectively assess the insurance-related problems witnessed during the last few years, IPN reports, quoting a press release of the Ministry.
The Ministry’s administration and insurers shared this opinion, noting that the costs of insurance in aeroculture are now too high. It was considered the possibility of reducing the insurance percentage from up to 15% to about 5%.
Minister of Agriculture Eduard Grama said they are examining two insurance methods – by mandatory insurance or by creating the National House of Agriculture Insurance according to the model used in healthcare.
During the discussions, the representatives of insurance companies submitted a number of proposals, including to launch the process by the mandatory insurance of vineyards and orchards with the possibility of extending the measure to other sectors. It is also considered the possibility of creating a legal framework that will make insurance in agriculture obligatory. A bill to this effect is being drafted. A number of consultations with representatives of associations of agricultural producers and civil society will be held on the issue this week.
More than 300 agricultural producers annually insure about 25,000-30,000 hectares of farmland. This is approximately 2% of the total area of farmland and orchards.
