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Agroinsurance Protects Farmers from Natural Disasters

TBC Insurance offers farmers to ensure harvest. Agroinsurance program is co-financed by the Agriculture Projects Management Agency, covering 50% of the cost of insurance in case of vine culture and co-financing of other cultures is 70%.

Agrinsurance farmers protect farmers from unexpected expenses that may result in terms of natural disasters. Agroinsurance insures them from the following risks: hail, flood, storm, autumn frost. The insured cultures are: cereals, legumes, vegetables, parsley, fruit trees, sludge, and vines.

The value of the Agroinsurance will vary according to cultures and the farmers’ payments on 1-hectare start from 25 GEL. The farmer can pay the insurance cost gradually as well as the loan.

Sergi Khizanishvili, TBC Insurance Banking Manager:

“Unfortunately, natural disasters such as hail, storm or flood are frequent events in Georgia. All this leads to a partial or complete destruction of the harvest and farmers can not earn the income they expect to receive after harvesting. The best way to avoid this is to protect the farmer from financial losses caused by unforeseen events. Unfortunately, there is no possibility to control natural disasters, so there is a cheap and simple agro-insurance that is beneficial for all farmers. “

In 2018 the amount paid by the insurance sector in Agro-sector was 6 million GEL.

Malkhaz Lekiashvili, a resident of Bodbe village of Sighnaghi municipality is one of those who insured the vine in TBC last year. 40% of Rkatsiteli’s hail on 4 hectares was damaged in September.

Malkhaz Lekiashvili, resident of Sighnaghi:

“A week earlier than the harvest began, hail came to the village and grapes were destroyed. I addressed TBC Insurance. The next morning, two young men came to check and found that 40% of products had been damaged. I was told to wait for the vintage, because hail was not excluded. When the harvest ended, the damage was recovered, which amounted to 4700 GEL. The loss was compensated by a kilogram of grapes market price – 80 tetri, “says the farmer.

Malkhaz Lekiashvili has already planted vineyards on 14 hectares and is still going to ensure grapes. This year he will ensure it at the cost of Rkatsiteli- 80 tetri and Saperavi -1,5 lari.

Agroinsurance became available as a result of co-financing of the Ministry of Agriculture, thus ensuring that farmers have access to small farms. The insurance can be purchased by any person who cultivates land and harvests the crop. It is mandatory that land should be registered in the public registry and the insured area does not exceed 5 hectares or 30 hectares in the case of grain culture. If the customer fails to meet any criteria of this state program, one can also ensure the land without co-financing. The difference is that 100% of the insurance premium will be paid by the farmer.

Agro insurance can be purchased at TBC Bank’s regional branches throughout Georgia.