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Agro-insurance Rates to be Revised

Agro-insurance tariffs will be revised. It will happen as soon asthe government installs anti-hail nets  in the region of Kakheti.

At this stage, the Ministry of Agriculture does not specifywhether the price of agro-insurance will hike or drop after tariffs are reviewed.

Agriculture Minister Otar  Danelia only says  that the newequipment  will be installed in the spring that means that the rates are to be revised.

“Commersant” was told at the Ministry that  the current datawere being  processed, in particular, the results of the insuranceas well as gaps were being  analyzed. Further details are not known.

President of the Georgian Insurance Association Devi Khechinashvili suggests  that agro- insurance will become  cheaper, because  the installation of anti-hail nets will decrease the risk of rainfall, for this reason the insurance rate should be reduced.

In his words, after the analysis is completed,  it will be possible to say  how agro- insurance  rates will be  adjusted.Khechinashvili estimates, if the anti-hail equipment is commissioned   in spring, next year there will be already enough data to develop a new tariff.
Places to install anti-hail equipment have already been selected in Kakheti. Delta Company worked on the choice of locationsalong with the security services.

According to  the company, in total  84 locations were selected in  the Kakheti region, where the equipment  will be installed. Delta”representatives report that they are mostly the places where the same equipment was installed during the Soviet Union.
According to their information, construction of greenhouses has already begin  and if the force majeure does not prevent, anti-hail nets will be  installed in the late spring.

The government has allocated GEL 22 million for anti-hail equipment. The pilot project was launched on 1 September 2014 .
70% -95% of the cost of agro insurance is covered   by the state.

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