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Whether Pilot Agro-insurance Project Justified itself ?

In total 20 thousand policies were  sold within a pilot agro- insurance  program. Amounts to be paid out by the insurance companies make more than half a million.

4 companies were involved in the project, such as “GPI Holding”, “Aldagi BCI”, “IRAO” and “IC Group”. It turns out that some of the beneficiaries have not received any compensation, while the other part of insurers will have to pay thousands of GEL.

The reason is that “Aldagi” and “IC Group” insured beneficiaries in eastern Georgia, while “Irao” and “GPI Holding” are operating in Adjara and Guria regions suffered the losses in this period.

The  insurance company “IRAO”  says that a total of 10 thousand beneficiaries are insured in the regions of Adjara and Guria  where damage  was mostly caused  in December. The company notes that in December  4 200 applications for compensation for   damages were submitted, the total damage  amounted to one million 200 thousand.

“GPI Holding”  will pay out  GEL 400 000 in the frames of the pilot agro-insurance project.  More than 1 500 applications for compensation for   damages  were submitted from Adjara and Guria farmers.  The process of issuing compensations  began in December and will be completed by the end of February.

“This year  “GPI Holding” issued more than 5 000 policies within the  agro- insurance program. Loss was quite large. As you know, there was hail and heavy rain in the fall causing too much damage to the farmers”, – Paata Lomadze”, GPI Holding” Director General, says.
At this stage, “Aldagi” has sold 4 thousand policies.

The insurance company says it has the great experience on the  agro-insurance market, in the  last 3 years the company paid out  2 million, the company plans to participate  in the agro-insurance  project in future as well.

“IC Group” company sold 800 policies at this stage, however, the damage is not yet recorded here. The company expects risks to be occurred in spring- summer period.

In a few weeks after the launch of the  project,  “Cartu” company withdrew from the program without  explaining the reasons.

The pilot project will last until  1 September 2015.

A total of 70%-90% or, in some cases, even 95% of the insurance package will be covered by the state whilst the farmer, user or any other person using the insurance will pay, according to certain scales, over 0,5% of the insurance.

Within the project, all types of agricultural crops are insured from hail, excessive rainfall, storm, autumn frost.