AGRICULTURE
DESCRIPTION
FOR WHOM IS THE PRODUCT?
This product was developed by the German KFW Bank and co-financed by the Central Bank of the Republic of Armenia and its Advisors. Within the framework of the project, the Government has been awarded EUR 5,000,000 for the introduction of agricultural insurance in the Republic of Armenia. The program has been a pilot for a period of 5 years.
The agricultural insurance product is intended for legally capable individuals or legal entities who own, lease, and/or operate an orchard, field, or land plot.
WHAT CAN BE INSURED?
The agricultural insurance contract is concluded for orchards, fields, land plots of apricots, grapes, apples, peaches and grain, which
- Have a greater area than 0.5 acres,
- There is an existing hail station in the community,
- There is only one kind of crop in the garden, meaning there are no mixed crops in the garden,
- In the case of Apricots, the garden has to be between 5-30 years old. In the case of Grapes, the garden has to be at least 5 years old,
- Have a lease certificate and/or other legal documents clearly showing the area of the garden.
WHAT RISKS CAN BE INSURED?
- “Hail” – includes:
- physical damage to the tissues of the trees (buds, leaves, flowers, fruits, grains, stems, branches)
- “Fire” – includes:
- Damage to the buds, flowers or fruits caused by fire (smoke, mulch)
- Damaged caused to insured crops, during the deployment of fire extinguishing measures, does not apply to damage to trees and vines*
* Does not apply to damage to trees and vines.
- «Spring frostbite»** – refers to the period when the plants restore the vegetation after the winter holidays.
- Damage of part of fabrics of trees, flowers, small fruits caused by temperatures below freezing point
** refers to the period when the plants restore the vegetation after the winter rest.
UNINSURED RISKS
- Winter frostbite,
- Pests, diseases,
- Wild animals,
- Production failures,
- Mass disorder,
- Fire (arson),
- Gardens that are constantly damaged or do not yield during the last 2 years,
- Other clearly uninsured risks:
AN EVENT DOES NOT CONSTITUTE AS INSURED IF
- sudden fractures or damage to trees, their parts, if not caused by an insured event, including the rot, moisture, mold on trees and their parts,
- due to fluctuations in the market value of the insured crop, any financial loss or damage-loss of income, taxes, penalties, credit obligations,
- damage to trees from groundwater as a result of melting or heavy rains,
- the harm caused by any type of pollution, chemical or other biological substances,
- harm from diseases of trees and insects,
- a fire caused by the insured or another person, including for the purpose of saving the crop from freezing.
WHERE DOES THE INSURANCE ACT?
- Insured gardens, fields, land plots must be located in the following regions of the Republic of Armenia՝
| Crop
Risk |
Apricot, grape
Hail and fire |
Peach, apple, grain
Hail and fire |
Apricot, grape, peach
Spring frostbite |
| Ararat | V | V | V |
| Armavir | V | V | V |
| Aragatsotn | V | V | – |
| Kotayk | V | V | – |
| Tavush | V | V | – |
| Vayoc Dzor | V | V | – |
| Lori | – | V | – |
| Gegharkunik | – | V | – |
| Shirak | – | V | – |
| Syunik | – | V | – |
The damage caused by the impact of other factors, will not be compensated.
WHAT TO DO IN CASE OF AN ACCIDENT?
- No later than within 48 hours after the occurrence of the insured event, inform the insurer by phone or e-mail (according to the contact details specified in the contract). In case of fire, immediately contact the 911 service of the Ministry of Emergency Situations.
- The damaged crop should be stored until the assessment of damage in the condition resulting from the insured event unless any action is required to reduce the damage.
- In case of partial damage to the crop at the beginning of the harvest period, not later than 15 days before harvest, inform the insurer so that the latter has the opportunity to conduct a study of the crop.
INSURANCE AGREEMENT
WHAT IS THE DURATION OF THE AGREEMENT?
- The contract is concluded for a fixed period.
| Crop | Risk | Deadline of sale | Term of the insurance contract |
| Apricot | Hail and fire | March 25 | From March 1 to August 25. |
| Spring frostbite | February 15 | From March 1 to August 25. | |
| Grape | Hail and fire | March 25 | From April 1 to October 30. |
| Spring frostbite | February 15 | From March 1 to August 30. | |
| Apple | Hail | April 20 | From May 1 to October 10 (or not earlier than the stage of fruit formation). |
| Peach | Hail and fire | March 20 | From April 1 to October 10. |
| Spring frostbite | February 15 | From April 1 to October 10. | |
| Autumn wheat/barley | Hail and fire | May 1 | From April 1 to September 1. |
| Spring wheat/barley | Hail and fire | May 1 | From May 1 to October 1 (or not earlier than the spring grain shrub period). |
HOW MUCH IS THE INSURANCE COVERAGE?
The insurance amount in the case of hail, and in the case of frostbite can be:
| № | Insurance coverage (1 acre) | ||
| Apricot | Grape | Peach | |
| 1 | 400 000 Arm. dram | 750 000 Arm. dram | 800 000 Arm. dram |
| 2 | 600 000 Arm. dram | 1 000 000 Arm. dram | 1 000 000 Arm. dram |
| 3 | 800 000 Arm. dram | 1 250 000 Arm. dram | 1 300 000 Arm. dram |
| 4 | 1 000 000 Arm. dram | 1 500 000 Arm. dram | |
| 5 | 1 200 000 Arm. dram | 1 800 000 Arm. dram | |
- When insuring apples from hail risk:
| № | Traditional gardens (Arm dram/1acre) |
Semi-intensive gardens
(Arm. dram/1acre) |
Intensive gardens
(Arm. dram/1acre) |
| 1 | 500,000 | 2,000,000 | 4,000,000 |
| 2 | 800,000 | 4,000,000 | 6,000,000 |
| 3 | 1,000,000 | 6,000,000 | 8,000,000 |
- Insurance of autumn grain (wheat/barley) from hail and fire risk
| № | Irrigated fields
(Arm. dram/1acre) |
Non-irrigated fields
(Arm. dram/1acre) |
| 1 | 300,000 | 250,000 |
| 2 | 350,000 | 280,000 |
| 3 | 380,000 | 330,000 |
- Insurance of spring grain (wheat/barley) from hail and fire risk
| № | Irrigated fields
(Arm. dram/1acre) |
Non-irrigated fields
(Arm. dram/1acre) |
| 1 | 250,000 | 200,000 |
| 2 | 280,000 | 230,000 |
| 3 | 300,000 | 250,000 |
WHAT ARE THE SUBTITLES?
- In the case of spring frostbite of apricots and peaches, the maximum compensation can be 50% or 100% of the damage, depending on the contract.
- In the case of other crops and their respective risks, the maximum compensation can be up to 100% of the damage caused.
HOW IS THE INSURANCE PREMIUM PAID?
The insurance premium is partially subsidized by the state.
From the risks of “Hail and fire” the subsidy of the insurance premium for land plots of apricots and grapes is 50%, and from the risk of “Spring frostbite”, the subsidy of the insurance premium for land plots of apricots and grapes is 60%.
WHAT IS THE NON-REFUNDABLE AMOUNT?
- For each garden 10% of the sum insured
WHAT DOCUMENTS ARE REQUIRED FOR THE CONCLUSION OF THE CONTRACT?
- Information about the organization,
- land ownership certificate /lease agreement/,
- other legal documents,
- email.
Agricultural insurance rules (only in Armenian)
Agricultural insurance application (only in Armenian)
