The modern business system involves the use of insurance protection mechanisms. In Russia, agriculture is one of the risky sectors of the economy, since the natural and climatic conditions are quite harsh and unpredictable, and the level of risk of losses in the agro-industrial complex is very high. Agricultural insurance expert Evgeniy Laryushkin speaks about the mechanisms and problems of insurance in the agro-industrial complex. Over almost twenty years of experience in the field of agricultural insurance, Evgeniy Semyonovich has developed his own special vision.

The production of crop production, horticulture and viticulture every year suffers colossal losses from unfavorable natural and climatic conditions. In extreme current conditions, the state, in one or another region of our country, declares an emergency, as a result of which the state compensates for the costs (in full or in part) of growing any product. I emphasize, not lost income, not lost profits, but costs. So, sowing, for example, winter crops, was carried out in the fall of the previous year, and the state compensated for the costs in the coming year. Considering the depreciation of the ruble, the agricultural producer does not have enough money to sow the same crop on the same area, and since he does not have his own funds, it is necessary to take out a loan at considerable interest. Ultimately, the company falls into credit bondage. What is the way out? There is only one way out - insurance.

Insurance originated a long time ago. It was initiated by merchants who sent their goods by sea, which was accompanied by enormous risks. At first these were mutual aid partnerships, whose members contributed a certain percentage of the cost of the goods. The partnership, in the event of loss of goods, compensated for its cost. Subsequently, when there was an understanding that this area, like any type of business, can bring big dividends, insurance companies began to be created that provide insurance services in other areas, including. and agriculture.

Throughout the civilized world, as they say, the issue of crop insurance has been resolved. In some countries it is better, in others it is worse. For example: in one state (former republic of the USSR), crop insurance is not mandatory, but an agricultural producer who does not insure the crop is obliged to pay to the state an amount equal to the insurance premium. When an insured event occurs, the state insurance company, without unnecessary delay, pays insurance compensation, which in turn is compensated by the state.

In the Russian Federation, insurance of agricultural risks, having passed the stage of stagnation, has entered the stage of agony. The reason for this development was the initially incorrect approach to this type of insurance. State support in the amount of 50% of the insurance premium for insurance of agricultural crops, perennial crops and perennial plantings, which was initially paid to policyholders, today - to insurers, entailed the so-called “gray insurance schemes” in which budget funds allocated for insurance were stolen , thereby undermining the very idea of ​​supporting crop insurance in general.

To regulate and bring to general standards of agricultural insurance, National Unions of Agricultural Insurers are being created in the country, but, unfortunately, they were not able to create insurance rules that would meet and protect the interests of not only insurance companies, but also agricultural producers because the insurance rules were created union of policyholders, without the participation of representatives of insurers and even without representatives of independent experts.

Today, the country has created the “Unified Association of Insurers of the Agro-Industrial Complex - “National Union of Agricultural Insurers”, which has somewhat changed the conditions for insurance of the agro-industrial complex. In particular: “an insured event occurs when there is a crop shortfall of more than 30%,” today this figure has dropped to 20%. And why, precisely at this magnitude of shortfall? After all, this didn’t happen! Crop insurance began during sowing, which created a certain tension since, for various reasons, the actual sown area did not always correspond to the declared one, or within two weeks after its end. Today, in accordance with the Federal Law of July 25, 2011 N 260-FZ (as amended on June 23, 2016) “On state support in the field of agricultural insurance and on amending the Federal Law “On the Development of Agriculture”

“3) the agricultural insurance contract was concluded:

A) in relation to agricultural crops, with the exception of perennial plantings, no later than fifteen calendar days after the end of their sowing or planting;

However, according to V. Shcherbakov, who was the first to initiate and create a partnership of independent crop insurance experts, these are small tactical moves. There is no real strategy for the development of agricultural insurance. It’s hard to disagree with this opinion.

NIA today sees its role in agricultural insurance as advocating for government subsidies for insurance premiums. I think this is a dead end solution. There should be no direct government subsidies to support insurance, and such tactics, the abolition of direct support for agricultural insurance, have long been developed and used in many countries.

The link between crop insurance rates and the size of deductibles is not entirely clear. Everything was calculated by competent actuaries, however...

This approach to insuring agricultural risks is not entirely correct. Why and who came up with this, because in this case the interests of insurance companies, as well as the interests of policyholders, who are agricultural producers, are not taken into account. Why does the NSA decide for the insurer and the policyholder which deductible should be applied in a given case? In essence, two parties enter into a transaction agreement in which the insurer, for a certain fee (insurance premium), provides a service to the policyholder, guaranteeing compensation for damage in the event of crop shortage or loss. Why does a third party impose conditions on them without knowing the degree of risk. Why does the onset of an insured event begin in the event of a crop shortage of 20 percent or more? What if the policyholder wants to receive insurance compensation for a crop shortfall of less than 20%? There is only one answer - insure, without government support.

Factors leading to a decrease in agricultural insurance volumes are as follows:

1. Branches of insurance companies do not employ highly professional, experienced agricultural specialists, and therefore cannot correctly assess risks when insuring crops.

2. When an insured event occurs, insurance companies make every effort not to pay insurance compensation. Very often, policyholders receive compensation based on court decisions.

3. Policyholders do not always correctly understand the terms of insurance and the mechanism for receiving insurance payment upon the occurrence of a dangerous meteorological phenomenon related to the insured event. On this basis, disagreements arise between the policyholder and the insurer, leading to arbitration proceedings.

To resolve the contradictions described above, by Decree of the Government of the Russian Federation of December 30, 2011 No. 1205, the institution of independent experts was introduced, however, this was not without distortions.

“If the events provided for in Article 8 of this Federal Law occur and there are disagreements between the parties to the agricultural insurance contract, the insurer conducts an examination with the involvement of independent experts in order to confirm the fact of the occurrence of the insured event and determine the amount of damage caused to the policyholder.” Why the insurer is understandable, however, I consider it necessary to give the insured the opportunity to participate in organizing the examination, by discussing with the insurer the candidacy of an expert, the right to challenge the expert proposed by the insurance company, or in another way.

Why can’t the policyholder independently attract a second independent expert at his own discretion (by paying for his work) to conduct a commission examination? By depriving the insured of this opportunity, we, in fact, infringe on his rights, and in this state of affairs, it is difficult to expect farmers to accept insurance as protection from unfavorable natural and climatic conditions. Agricultural producers today have no faith in the insurance institution, and the right of the insurer, given to him by law, to conduct an examination unilaterally, only strengthens this disbelief.

In terms of the absolute size of insured areas, according to NSA, in 2017 the drop was 68% compared to 2016 - to 1,323 thousand hectares, in the number of insured agricultural producers - a drop of 64%, in terms of the volume of liability - by 70% (from 132 billion rubles. up to 39 billion rubles). The accrued insurance premium amounted to just over 1.5 billion rubles, which is 80% less than in 2016, and the actual transfer of subsidies was 77%.

Thus:

1. Insurance of agricultural crops, perennial crops and plantings of perennial crops should take place without direct government support. This will eliminate “gray schemes” and preserve budget funds aimed at supporting agricultural producers. Indirect support for crop insurance should consist of subsidies allocated for the purchase of other types of goods and services necessary for production (fuel and lubricants, seeds, pesticides, etc.).

Example: For one hectare of land, 100% of subsidies are allocated, and the agricultural producer who insured the crop must be allocated (as a state subsidy for insurance) 120 percent.

2. The tariff for insurance of the same crop should be the same for a certain region. The insurance rules should not indicate a deductible; its amount when concluding an insurance contract should be determined by the insurer and the policyholder. To do this, branches of insurance companies must have experienced, highly qualified employees (agronomists) to correctly assess insurance risks. With this approach, the question of what amount of crop shortfall, and today this value is 20%, will trigger an insurance event will not arise because it will be decided during the discussion and conclusion of the insurance contract.

3. Legalize the right of the insured to take part in the selection of an independent expert: to challenge, propose another candidate, attract a second independent expert to conduct a commission examination, when determining the occurrence (non-occurrence) of an insured event, and in the event of an insured event, determining the amount incurred in connection with this damage in material and monetary terms.

4. When developing the “Rules for insurance of agricultural crops, perennial crops and perennial plantings,” it is necessary to involve independent experts as a neutral party that will contribute to a more objective approach to the development of insurance conditions.

Evgeniy Laryushkin
agricultural insurance expert

Taking into account the current situation in the world and the beginning of the introduction of sanctions, the role of the “domestic producer”, the agro-industrial complex in general and small farms in particular, is increasing in the issue of food security in our country.

However, in Russia, agriculture is often carried out in unfavorable climatic conditions: more than half of the arable land is located in cold areas. Huge territories are located in the so-called risky farming zone.

Livestock farms also have their share of problems. Take, for example, the risks of the emergence and spread of various types of epidemics. Swine fever, mad cow disease and bird flu, widely covered by the media, are not a complete list of serious diseases to which farm animals are susceptible.

The agricultural and livestock sectors, like no other, need protection - insurance.

Insurance history

The main producers of agricultural products have long been collective and state farms.
After the collapse of the Union, they, not designed for competition, did not survive in market conditions.

They were replaced by completely different ones - peasant farms producing, processing, transporting, storing and selling various agricultural products, or farm.

Farming involves a huge number of risk factors. But the main, and sometimes decisive, thing is natural. The outcome of many weeks of work by agricultural producers depends on it.

Man influences nature and also experiences its influence. Insufficient knowledge of its patterns can play a bad joke on the farmer. Nature is getting out of control, making catastrophic adjustments to the results of labor. Agricultural producers annually bear huge losses from disaster. Droughts occur almost every year.

Agricultural insurance in Rus' was practiced back in the era of Yaroslav the Wise. It became widespread in connection with the abolition of serfdom and the development of zemstvo and mutual peasant insurance. The targets of such actions were rural communities.

Insurance of belongings against fire, fields against hail, animals against death, and vineyards against phylloxera was widespread.

Today there are several insurance models:

• share (50 percent) participation of the state in insurance premiums through special government agents and the creation of a state insurance reserve. Last year, insurance premiums under such contracts amounted to almost fourteen million rubles;
• associations of insurers;
• agricultural insurance cooperatives.

Types of farm insurance

The main ones cover such objects as:

Some insurance companies offer comprehensive farm insurance programs:

• home insurance;
• farm animal insurance;
• horses;
• from hail and fire;
• multi-risk crop or winter crop insurance;
• crop insurance based on a yield index, established as a percentage of the 15-year average yield in a given area;
• insurance for the period of the full agricultural cycle: coverage (not a deductible!) is calculated individually according to the field table;
• insurance of perennial fruit and berry crops;
• agricultural machinery insurance.

When concluding agricultural insurance contracts, it is necessary to study their conditions in detail.

Particular attention should be paid to:

• what needs to be provided in the event of an insured event;
• how the amount of compensation will be calculated;
• what is the cost of insurance (low cost is often associated with incomplete coverage of risks, with a high deductible);
• What is the procedure for paying compensation?

To pay compensation, the insured must fulfill a number of requirements stipulated by the relevant contracts:

• promptly report the fact of an insured event;
• provide statistical documentation confirming the shortage of products;
• promptly notify insurance organizations about conducting control checks and inspections of insured objects;
• provide a certificate from Roshydrometcenter about the occurrence of a dangerous natural phenomenon during the production of the insured product.

At present, insurance, although absolutely necessary, has not yet received proper distribution. Only about fifteen percent of agricultural producers insure their risks in crop production.

Problems of agricultural insurance and methods for solving them

The weakness of the agricultural insurance system is as follows:

For the widespread distribution of agricultural insurance and the reduction of risks in farming by farmers, it is necessary to develop its various competing forms.

A good solution to this problem is agricultural insurance cooperatives (AIC). These structures form reserve (guarantee) fund, helping to ensure the solvency of cooperatives.

In case of major damage and insufficiency of such funds state replenishes them through budget subsidies or allocation preferential loans.

An effective lever for increasing the buoyancy of such organizations is investment activities, the income from which is used to reduce insurance rates or completely exempt individual farms from regular contributions.

Such SSCs already exist in the Samara and Astrakhan regions, as well as in Yakutia. They unite a few more farms and are only gaining experience in this area. However, they are the future.

The success of farm production depends to a large extent on the surprises of nature. Insurance of buildings, crops, equipment, livestock, equipment, etc. helps reduce their risks.

In case of significant damage, great assistance is provided state programs to support farmers.

Agricultural insurance cooperatives (AICs) are also a viable form of non-profit insurance and a means to increase the availability of such protection.

Types of farming insurance are constantly increasing and improving.

Video about state support for insurance in agriculture

In 1993, a system of state support was introduced in Russia in the form of compensation for part of the costs of agricultural producers when insuring crops. The model of the state support system for agricultural insurance in Russia is based on the principle of co-financing, which provides for the allocation of funds from the federal and regional budgets to compensate for part of the costs of paying insurance premiums by agricultural producers when concluding insurance contracts. In subsequent years, changes were constantly made to this system aimed at improving it.

From January 1, 2012, agricultural insurance with state support began to be carried out in accordance with the Federal Law of July 25, 2011 N 260-FZ “On state support in the field of agricultural insurance and on amendments to the Federal Law “On the Development of Agriculture”.

This law provides for a significant number of innovations:
1) the problem of reducing the financial burden on agricultural producers has been solved. According to the new mechanism of agricultural insurance with state support, agricultural producers pay only 50% of the accrued insurance premium under the insurance contract (previously they made an insurance contribution in the amount of 100% of the premium and waited for a long time for a 50% subsidy). The remaining part of the insurance premium, payable on the basis of the application of the agricultural producer, is deposited by the governing body of the agro-industrial complex (AIC) of the constituent entity of the Russian Federation into the insurer's bank account;
2) an agricultural insurance plan with state support has been introduced, which annually determines the list of agricultural insurance objects with state support, as well as the maximum rates for calculating the amount of subsidies;
3) agricultural insurance with state support began to be carried out only against the risk of loss (destruction) of agricultural crops and perennial plantings. In this case, the loss (death) of the crop is understood as a decrease in the actual yield by 30% or more compared to the planned one, and of perennial plantings - the loss of viability of perennial plantings on more than 40% of the planting area;
4) the list of agricultural insurance objects for which state support is provided has been expanded. Since 2013, state support has been extended to insurance of farm animals;
5) the list of events that caused the occurrence of an insured event has been expanded. The list of natural phenomena dangerous for the production of agricultural products additionally included such phenomena as dry winds, strong winds, natural fires, etc. Along with dangerous natural phenomena, the list of risks, insurance of which is carried out with state support, also included disruption of the supply of electrical, thermal energy, and water as a result of natural disasters when insuring agricultural crops grown in protected soil or on reclaimed land; the insured amount is set at no less than 80% of the insured value of agricultural crops, perennial plantings, as well as farm animals;
6) the use of an unconditional franchise mechanism (the insurer's participation in the risk) is provided in the amount of 0 to 40% of the insured amount, which further reduces the financial burden on agricultural producers;
7) insurance of agricultural risks with state support is carried out by insurance organizations that are members of the association of insurers. The association of insurers performs the functions of maintaining the solvency of the entire system in the event of bankruptcy of one of the insurers by forming a fund of compensation payments by transferring a part (at least 5%) of the received insurance premium under agricultural insurance contracts;
If there are disagreements between the parties to an agricultural insurance contract, the insurer must conduct an examination with the involvement of independent experts in order to confirm the fact of the occurrence of an insured event and determine the amount of damage caused to the policyholder. Requirements for conducting agro-expertise and for the qualifications of experts are established by the Government of Russia. According to available data, 189 independent experts were certified in 2012.
In terms of their significance, these changes are an important step in the development of an agricultural insurance system with state support. It has been suggested that new legal mechanisms make it possible to modernize this insurance in Russia and build an effective, transparent, workable system in the interests of ensuring the economic sustainability of national agriculture and greater availability of insurance for Russian agricultural producers.
Not much time has passed since the law came into force and it is still too early to draw deep conclusions about the effectiveness of the new insurance system. However, some trends have already emerged, as have the shortcomings of the law itself in its implementation in practice.
First of all, let’s look at how the introduction of the new law affected the indicators of agricultural insurance with state support (Table 1).

Indicators of agricultural insurance with state support in the Russian Federation

Indicators
Number of agricultural organizations insuring crops
Number of regions where crop insurance is provided
Amount of paid insurance premiums, million rubles.
Number of farms that received insurance compensation
Amount of insurance compensation paid, million rubles.
Number of insurance organizations providing agricultural insurance with state support

As can be seen from the table, the indicators for 2012-2013. in general, differ little from similar data in previous years, when a different insurance system was in effect. In particular, the number of agricultural organizations insuring crops in 2013 remained at the level of 2011. The same can be said about the amounts of insurance premiums paid, insurance compensation paid and the number of farms that received insurance compensation. At the same time, it is important to note two negative trends: a reduction in the number of regions where crop insurance is provided and the number of insurance organizations providing agricultural insurance with state support.
Despite the generally positive assessment of the new insurance system, some provisions of the law continue to cause heated controversy. Thus, agricultural producers criticize the current definition of an insured event “loss (destruction) of an agricultural crop.” Let us recall that the latter in the law means a decrease in the actual harvest of an agricultural crop by 30 percent or more as a result of specified events that occurred during the period of validity of the agricultural insurance contract compared to the planned harvest. Farmers consider this formulation unfavorable for themselves, since it significantly limits the possibility of an insured event occurring and receiving compensation from the insurer. In particular, agricultural producers from the Southern Federal District are confident that, according to their information, such cases (reduction in yield by 30% or more) are extremely rare and, therefore, there is little point in concluding an insurance contract on such conditions. Many legislators, officials and some insurers share a similar point of view. Therefore, a proposal is currently being developed to reduce the threshold value from 30% to 25% (unified throughout the country) or to differentiate this indicator by region of Russia (30, 25, 15%).
The set of insurance risks against which insurance is carried out also requires taking into account regional specifics. The flood in the Far East in 2013 showed that the loss of crops as a result of flooding is not an insured event (the law only provides for the risk of “waterlogging of the soil”). At the same time, the risk of “flood” is included in the list of events when insuring farm animals. Therefore, the formulation of the criteria for particularly dangerous weather phenomena should be more clearly spelled out in the law, taking into account the natural and climatic characteristics of individual regions of the country.
Also, in order to reduce the cost of insurance, it would be necessary to provide the opportunity to conclude an agreement not only against the entire set of risks, but also against individual dangerous natural phenomena: drought, hail, etc.
State participation in agricultural insurance with state support is realized through the provision of subsidies to reimburse part of the costs of agricultural producers to pay insurance premiums under concluded insurance contracts (Table 2).

table 2

Amount of subsidies to reimburse part of the costs of agricultural producers for the payment of insurance premiums under concluded insurance contracts, million rubles.

Indicators
Subsidies transferred from the federal budget
Subsidies transferred from the budgets of constituent entities of the Russian Federation
Total subsidies transferred

The state program for the development of agriculture and regulation of markets for agricultural products, raw materials and food for 2008-2012, approved by Decree of the Government of the Russian Federation dated July 14, 2007 N 446, stipulated that the volume of subsidies from the federal budget to compensate for part of the costs for the implementation of agricultural insurance with state support in 2008-2012. will amount to 26.6 billion rubles, including 6 billion in 2012. The actual amount of funds allocated by the federal budget of the Russian Federation to compensate for part of the costs of agricultural insurance with state support in 2008-2012. amounted to 18.8 billion rubles, including 4.4 billion in 2012.
The allocation of subsidies in accordance with the new law revealed a number of significant problems that agricultural producers faced in practice. There have been numerous examples of unlawful demands of the governing bodies of the agro-industrial complex of the constituent entities of the Russian Federation when providing subsidies. Thus, in a number of regions, local authorities made illegal demands to change the Insurance Rules (standard) and the insurance contract as allegedly contradicting Russian legislation; dates were also unlawfully set before or after which documents for receiving subsidies were not accepted; Documents for subsidies were not accepted if the insurance tariff exceeded the maximum subsidy rate.
To eliminate the above and other negative aspects, on December 22, 2012, the Government of the Russian Federation adopted Resolution No. 1371 “On approval of the Rules for the provision and distribution of subsidies from the federal budget to the budgets of constituent entities of the Russian Federation to reimburse part of the costs of agricultural producers for the payment of insurance premiums under agricultural insurance contracts.”

In it, in particular:
– provides an exhaustive (closed) list of documents provided by agricultural producers to the authorized body, necessary to receive a subsidy to reimburse part of the costs of agricultural producers to pay an insurance premium under an agricultural insurance contract;
– the period during which the authorized body is obliged to transfer subsidies in the amount of 50% of the insurance premium to reimburse part of the costs of agricultural producers to pay the insurance premium under an agricultural insurance agreement to the settlement account of the insurance organization based on the application of the agricultural producer is indicated;
– the obligation of the authorized body, after refusing to provide an agricultural producer with targeted funds, has been established to re-consider the documents submitted by him, necessary to receive targeted funds, after bringing them into compliance with the requirements established for receiving targeted funds.

In 2013, 4,167 million rubles were allocated from the federal budget for subsidies, whereas previously the amount of 5 billion rubles was provided. Agrarians of the Volga Federal District received almost 1.1 billion rubles. (26% of the total amount), almost a billion rubles were sent to the Central and Southern Federal Districts. Smaller amounts were received by farms in the Northwestern and Siberian federal districts (22.2 million rubles and 17.2 million rubles, respectively). For 2014, subsidies from the federal budget are planned in the amount of 5947 million rubles, including 4997 million rubles for insurance of agricultural crops. (instead of the previously established figure of 5260 million rubles), for animal insurance - 950 million rubles.
Along with the ongoing reduction in funds actually allocated from the budget compared to the planned amounts, there is a problem of untimely receipt of state support funds and underpayment of subsidies under concluded agreements. As a result, agricultural producers suffer, since all the risks of untimely receipt of state support funds under the current system lie with them. The fact is that the payment of insurance compensation today is tied to the full payment of the insurance premium, and if government bodies refuse to issue the subsidized part, the amount of payment to the agricultural producer upon the occurrence of an insured event is reduced in proportion to the unpaid part of the premium.
Unfortunately, very often delays and refusals to pay subsidies are associated with unlawful actions of regional officials.
Along with funds from the federal budget, subsidies are also provided from the budgets of the constituent entities of the Russian Federation. However, the latter account for no more than 10-15% of their total amount. However, after a major dangerous natural event that causes great damage, local authorities one way or another think about the need for subsidies and funds are eventually found.
As already noted, since 2013, along with subsidizing crop insurance, state support for insurance of farm animals has been introduced. However, the list of diseases that are covered by insurance with state support was not approved in a timely manner, which explains the small number of insurance contracts concluded; by November 1, 2013, only a few dozen of them had been fully issued throughout Russia.
In accordance with the State Program for the Development of Agriculture and Regulation of Markets for Agricultural Products, Raw Materials and Food for 2013-2020, budget funds are allocated for state support of agricultural insurance in 2013-2020. in the amount of 56.9 billion rubles, of which 46 billion rubles for state support for insurance of agricultural crops and planting of perennial plantings, 10.9 billion rubles for state support for insurance of farm animals. In order to effectively use planned resources, it is necessary to constantly improve both the conditions of agricultural insurance and the procedure for state support. This will contribute to the expansion of agricultural insurance operations and more complete compensation of farmers' losses through the insurance mechanism.
It is important to pay attention to the following aspect. Upon joining the WTO, Russia managed to agree on a high level of support for its agricultural sector - $9 billion. in year. Some experts expressed the opinion that the Russian budget is unlikely to be able to allocate the amount allowed by the WTO to support the domestic agricultural sector. But no matter how the situation with state support develops, its level, due to the signed agreement, will be constantly reduced until 2018. Under such circumstances, the allocation of subsidies for agricultural insurance becomes not only a source for its expansion (WTO rules do not contain any restrictions on subsidies for insurance) , but also an important contribution of the state to the development of the village as a whole.

Literature:

1. Report on the state of the agricultural insurance market, carried out with state support in the Russian Federation in 2012: M.: Ministry of Agriculture of Russia, Federal State Budgetary Institution "FAGPSSAP", 2013.
2. Chuvakhina L.G. Customs Union and WTO: Russian realities. Financial magazine. 2013, N 1(15), p. 39-50.
3. Agricultural insurance: movement towards an optimal model. Review of the results of the conference on agricultural insurance. Finance, N 1-2014.

E.F. Dyuzhikov,
Leading Researcher at the Scientific Research Institute
Institute of Finance, Associate Professor at the Financial University
under the Government of the Russian Federation, Candidate of Economic Sciences

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Entrepreneurial activity in the field of agriculture is quite high-risk. The main risks are the possibility of a decrease in the quantity and quality of the harvest due to unfavorable weather conditions. In other areas, it is possible to calculate risks using modern analytical tools. But it is never possible to predict, even with approximate accuracy, the onset of severe frosts, hail, or the uncontrolled spread of fire in agricultural land. Therefore, today the insurance industry such as agricultural insurance is quite developed. Its types will be discussed below.

What is insured

Agricultural insurance does not mean only crop insurance for agricultural structures. It is also possible in relation to:

1. large and small cattle, pigs, horses, camels, other farm animals, poultry, rabbits, farms for breeding fur animals, fish farms, apiaries;
2. sowing of agricultural crops;
3. perennial plantings;
4. agricultural buildings, agricultural and livestock equipment, vehicles, fishing vessels, fishing gear, equipment, materials, raw materials and finished products.

Insurance events

An insured event is an event for which the corresponding object was insured and therefore insurance compensation is payable in connection with it.

The policyholder himself chooses from which events he is ready to insure each object. The more possible events the policyholder chooses, the greater the sum insured.

Recently, a type of agricultural insurance called multi-risk has emerged. This means that the policyholder insures objects against almost all risks (events). However, it is very expensive, and, as a rule, is carried out only with special subsidies from the state.

Let's consider the types of insurance events for various insurance objects.

Agricultural crops

For crops, the most common insured events are their damage or complete loss as a result of:

• natural events (freezing, soaking, drought, overheating, hail, rain, hurricane, storm, mudflow, flood);
• diseases;
• fire;
• pests

Harvest

When insuring a crop, the insured event will be its destruction as a result of various factors, as well as non-receipt of income from its sale.

Agricultural property

For various agricultural property, insured events are its damage or destruction as a result of:

• lightning strike;
• natural Disasters;
• fire, explosion, accidents;
• soil subsidence and the action of groundwater.

Perennial plantings, in addition to the above, can die as a result of frost, drought, pests and diseases.

For insured events in relation to fishing and other transport vessels, as well as fishing gear, insured events will be their damage or loss as a result of:

• natural events (collapse, flood, storm, fog, thunderstorm, hurricane, storm, downpour, hail);
• fire, accident, explosion;
• groundings;
• missing.

Farm animals

In relation to animals, the insured events will be their death as a result of:

• natural events (collapse, flood, thunderstorm, avalanche, mudflow, earthquake, hurricane, blizzard, storm, downpours, hail, snowfall);
• fire;
• diseases;
• freezing;
• sunstroke;
• drowning, falling into a gorge, suffocation;
• attacks by wild animals, bites of poisonous insects or snakes;
• being hit by a vehicle;
• accidental poisoning.

It is also possible to insure animals against such an event as forced slaughter as a result of:

• orders of the veterinary service;
• accident with the threat of imminent death.

Quite often, animals are insured against theft of any kind.

Farms and peasant farms, agricultural cooperatives and other organizational entities for the production, processing and sale of products occupy a significant sector in business activity. Agriculture includes not only production, but increasingly processes agricultural products through the creation of processing industries (mills, butter churns, meat processing shops, cereal mills, bakeries and other industries). Agriculture is constantly exposed to the elements of nature. Crop loss or damage occurs as a result of drought, lack of heat, excessive moisture, soaking, damping off, freezing, freezing, hail, rain, storm, hurricane, flood, mudflow, lack of water or low water in irrigation sources and as a result of other unusual conditions for the area meteorological or other natural conditions, as well as from diseases, plant pests and fire. The death of animals (mortality, forced slaughter or destruction) occurs mainly as a result of natural disasters, infectious diseases and fire, accidents. Death and damage to fixed and working capital for agricultural purposes is death or damage as a result of flood, storm, hurricane, rain, hail, collapse, landslide, groundwater, mudflow, lightning strike, earthquake, subsidence, fire, explosion and accidents, and long-term plantings - in case of their death as a result of the disasters listed above, as well as drought, frost, diseases and plant pests.

The listed reasons leading to significant damage in agriculture require certain protection and its replenishment, therefore agricultural insurance is quite common. It includes insurance of agricultural crops, perennial plantings, livestock insurance, insurance of machinery, implements and equipment of agricultural enterprises and farms, crop insurance and much more. Among the contracts, insurance contracts for fixed and working capital for agricultural purposes predominate, and animal insurance is somewhat less common. Agricultural insurance has its own specific features, both in terms of the set of objects insured, the calculation of insurance amounts and accepted insurance liability, and the variety of probable risks.

Settlement of losses under crop insurance:

· going to the fields to inspect insured crops with drawing up inspection reports;

Certificate of insured event (insurance act) - a document drawn up by the insurer (insurers) and containing information about the consideration of the claim for payment of insurance compensation, the presence or absence of an insured event, the amount of insurance compensation due to the insured or the grounds for refusal of insurance compensation and other necessary intelligence.

· determination of the reasons for the lag in the growth and development of agricultural crops;

· determination of the cause-and-effect relationship between the crop shortage and the stated events;

· calculation of quantitative crop losses from natural phenomena and from violations of agricultural technology;

· analysis of payment case documents and decision-making on losses;

· interaction with expert organizations;

Basic principles of agricultural insurance:

The basic principles of agricultural insurance are:

– unity of the insurance risk management system;

– ensuring financial stability and integrity of the agricultural insurance system;

– effective management of state support funds for the development of a risk insurance system in agriculture;

– voluntariness of concluding an agricultural insurance contract;

– provision of state support funds for the development of a risk insurance system in agriculture in relation to agricultural insurance contracts concluded in accordance with the requirements of this federal law;

– equal access of agricultural producers to the agricultural insurance system.

Determining the amount of insurance value:

1. When insuring agricultural crops, the insured value of the crop of agricultural crops and the harvest of perennial plantings is determined according to the methodology approved by the authorized body in agreement with the insurance regulatory body.

2. When insuring perennial plantings, the insured value is determined at the time of concluding the agricultural insurance contract:

– in relation to perennial plantings in fruit-bearing age at the book value of perennial plantings (according to accounting data);

– in relation to perennial plantings at a non-bearing age, according to the amount of cultivation costs (according to accounting data).

3. When insuring farm animals, the insured value is determined by the book value (if absent, by the average market value in the constituent entity of the Russian Federation according to official statistical information) of farm animals at the time of concluding the agricultural insurance contract.

Damage, its assessment:

1. When carrying out agricultural insurance (agricultural crops, perennial crops), damage from the risk of loss (destruction) of agricultural crops and perennial crops is defined as quantitative losses of agricultural products on the sown (planted) area, calculated as the difference between the value of the crop, accepted when concluding an agricultural insurance contract, and the value of the actual harvest received (harvest of agricultural crops and perennial plantings from the sown (planting) area received by the insured in the current year).

2. When carrying out agricultural insurance (planting perennial plantings), damage from the risk of loss (destruction) of plantings of perennial plantings is determined in the amount of the cost of the lost plantings.

3. When implementing agricultural insurance (farm animals): in the event of death (mortality), in case of forced slaughter of insured farm animals, the damage is determined as the difference between the insured value of the animal and the value of the sold usable residues (at the market selling price prevailing in the constituent entity of the Russian Federation according to the official statistical information).

General conditions for making insurance payments:

1. In agricultural insurance, payment of insurance compensation is made by the insurer in the manner established in accordance with standard insurance rules, based on the insured amount established at one hundred percent or eighty percent of the insured value, depending on the terms of the specific agricultural insurance contract for these types of insured property.

2. If the actual amount of damage caused to him, declared by the insured, exceeds the amount of the insured amount established by the agricultural insurance contract, then the difference between the insurance compensation and the actual amount of damage is not compensated by the insurer.

3. To receive insurance compensation, the policyholder is obliged to submit an application for payment of insurance compensation to the insurer. The application must be accompanied by an agricultural insurance contract (insurance policy), as well as other documents provided for by standard insurance rules.

4. The calculation of insurance compensation is carried out by the insurer on the basis of documents submitted to it by the policyholder, as well as received by the insurer from the competent authorities, other organizations and persons.

List of used literature

1. Semenova T.V., Agricultural insurance at the present stage, - M., 2007, 347 pp.

2. On the organization of insurance business in the Russian Federation: Federal Law of the Russian Federation of November 27, 1992, No. 4015-1.

3. Resolution No. 758 of November 1, 2001 “On state support for insurance in the field of agricultural production” (as amended by Decree of the Government of the Russian Federation of February 28, 2002 No. 137).

5.http://www.rg.ru/

6. Bill No. 436233-5 “Insurance of agricultural risks”

Type of law: Federal law

Task:

There is data on one of the risk types of insurance:

Average insured amount under one contract S = 43,000 rubles,

Average compensation under one contract SB = 32,400 rubles,

Number of contracts n = 12000,