COMPULSORY CROP INSURANCE
JSC «Kazagromarketing- Agent who manages the budget funds which maintains the compulsory crop insurance.
Based in the agreement with the Ministry of Agriculture of the Republic Of Kazakhstan in July 2012 The JSC «Kazagromarketing» carries out the functions of an Agent who manages the budget funds which maintains the compulsory crop insurance.
The JCS "Kazagromarketing" provides the following services:
1) Participates in the committee, created by the local executive body on the request of the insured, which defines the size of the area of the crop production that were exposed to adverse natural phenomena
2) Compensates the insured part (50%) of the paid insurance claims.
3) Makes the contract with the insured about the procedure and conditions of the partial reimbursement of insurance payments arising as a result of adverse natural phenomena.
TO ATTENTION OF AGRICULTURAL PRODUCER - INSURER!
Within of the state agrofood program Republic of Kazakhstan the Law of the Republic of Kazakhstan №533 "On the compulsory crop insurance" adopted on the 10th of March, 2004 (further is Law). Practical realization of Law was begun with 2005. Practical realization of Law was begun with 2005.
The main purpose of the law is the protection of property interests of farmers, who grow certain types of grains and oilseeds, as well as cotton and sugar beets, from the effects of adverse natural conditions.
State support of the "compulsory crop insurance" is implemented through the allocation of the budget funds to the Agent for the compensation of the half of the insurance payments to insurance companies and companies of mutual insurance on the cases that occurred as a result of the adverse natural phenomena.
From the period of 2004 to July of 2012 the Agent was the JSC "the Fund of Financial Support of Agriculture" (subsidiary of JSC "KazAgro " ). From July of 2012 till now this activity belongs to JSC "Kazagromarketing".
1. Compulsory crop insurance.
Making a contract on compulsory crop insurance is a must for producers of crops and insurers 4 types of crops are subjected to compulsory crop insurance:
3. Sugar beets;
2. Documents are necessary for making a contract on compulsory crop insurance
- Application form (taken from the insured);
- Taxpayer identification number;
- Reference to presence of the bank account;
- Certificate on the right to use land.
3. Deadline to sign a contract on compulsory crop insurance
The deadline for making a contract on compulsory crop insurance on all types of crop production: No longer than 15 calendar days after the completion of sowing that was registered by the local executive body.
4. Adverse natural phenomena
lack of heat
excess soil moisture
excess moisture in the air
If any one of the above events took place to be in the territory of your crops - which means the INSURED EVENT occurred.
1. Actions should be undertaken in the insured event
1. To notify the insurer either orally or in written form within 5 working days after the fact of the occurred adverse natural phenomena that could lead to the insured event. The oral notification should be confirmed in written form during the following 72 hours.
2. To take the certificate about the fact of the occurred adverse natural phenomena from "Kazgidromet" or from the agency on emergency situations.
3. To apply for the local executive body about the creation of the committee that will register the area which was exposed to the adverse natural phenomena.
It Must Be Remembered!
· If the adverse natural phenomena is the short-term (hail, downpour, freezing, strong wind, mudflow) then you must apply to akimat (local executive body) during 3 working days
· If the adverse natural phenomena is the long-term (drought, winterkill, lack of heat, excess soil moisture, excess moisture in the air, flooding, water scarcity, hot wind) you must apply to akimat within 10 working days.
2. The calculation of the insurance compensation is made (an example)
Payments to agricultural enterprises that suffered from losses are compensated by the insurer fully, if plants on the insured areas have died completely. In partial loss of crops only the positive difference between the income derived from the crop and the established norms of costs per hectare production is paid. The crop products, collected from areas exposed to adverse natural phenomena in the case of partial loss of crops is subjected to mandatory assessment at harvesting.
For example: complete loss of crops of wheat is 100 hectares, this area is insured according to the standard costs: 3457 tenge per hectare. 100 * 3457 = 345 700 tenge - is the amount of insurance payment to the insured by the insurance company.
In partial loss of crop on an area of 100 hectare payment is: Products harvested from an area of 100 hectares are 3 tons, cost of 1 ton is 40,000 tenge, 3 * 40000/100 = 1 200 tenge - income from 1 hectare . The amount of loss equals (3457-1200) * 100 = 225 700 tenge. This amount of 225700 is - the amount of insurance payments in partial loss of crops.
It Must be Remembered!
· In total loss of the crops the insurance payment is compensated within 10 working days after obtaining all the documents
· In partial loss of crops the insurance payment is compensated no earlier than 1 month, but no later than 3 months from the day of harvesting after obtaining all the documents by the insurance company.