INSURANCE COULD COST BECAUSE OF FARMER BENEFITS

Casco property and insurance may become more expensive. According to insurers, the new draft law of the Ministry of Agriculture – Law on Prevention of Natural Disasters and Adverse Climatic Events in Agriculture

The idea is to transform the “Fighting Hail” agency into a state enterprise, and one of its functions will be to pay compensation to farmers affected by natural disasters. For this purpose, the state company will manage a special fund. The fund is expected to be replenished from several sources:

from the state – means to combat hail,
mandatory contributions from agricultural producers, based on the area applied for support.
A new type of tax is planned for insurance companies – they will make deductions to the fund from the premium income from three types of insurance – “Fire and natural disasters”, “Other property damage” and “Autocasco”.