News

Newsletter, August 2019

Legal act: Law of the Republic of Azerbaijan No. 1617-VQ on Agricultural Insurance (the “Law”)

Authority: Milli Majlis

Enactment date: June 27, 2019

Effective date:  January 1, 2020

The new Law regulates the relations connected with risk insurance in the agricultural sector through the mechanism of co-insurance.

According to the Law, the subject matters of the insurance include:

  • agricultural plants and plant products (including perennial plantings and their products);
  • farm animals and animals raised for agricultural purposes;
  • aquaculture products.

Under the abovementioned subject matters of insurance, manufacturers of agricultural products are insured against one or more of the following risks in accordance with insurance rules:

  • Acts of God;
  • Fires;
  • Plant diseases and pests;
  • Contagious diseases and poisonings;
  • Wild animals attack and spread and attack of especially dangerous pests;
  • Acts of third parties.

Agricultural insurance premium consists of the parts paid by the insured person and state budget.

According to the Law, the insured person appeals to the Governing Body regarding the occurrence of the insurance event and the Governing Body provides the investigation and assessment of the damage by an independent expert defined by the Law.

As to the Governing Body, it operates in the form of  open joint stock company established with equal share ratio by legal entities licensed for non-life insurance activities in the territory of the Republic of Azerbaijan.

 

11 Sep, 2019