29.07.2010 Drought will force more conscious approach to crop insurance in Russia

The 2010 drought will make farm producers review their attitude to crop insurance issues,head of the expert council for the advanceman of farming and related industries in the Volga federal district Alexei Kubrin believes.
"At the conference today we were told that only 17% of crops in Russia are insured which is an extremely low future," he told Interfax in the wings of a session of an Agriculture Ministry commission in Penza.
"I would not speak for mandatory crop insurance. That would require a significant review of legislation but it is apparent that crop insurance should become a conscious choice," he said.
"The drought this summer shows the need for insurance in farming as a strategic branch of the economy," Kubrin said.
He spoke of the need for better control and selection of companies in farming insurance.
"Many insurance companies are striving for profit without guaranteeing their obligations. A list of truly responsible insurers must be made," he said.
Meanwhile,Penza region governor Vasili Bochkaryov told Interfax that his region has already come across unscrupulous insurers.
"We have come across cases when branches of several insurance companies tried to evade payouts to farmers. They collected the money but when serious problems arose because of the drought they went into hiding," he said.
"We have involved the prosecutor's office in resolving the issues," he added.
Source - Interfax |