BAKU, Azerbaijan, July 3. Agricultural insurance supported by the state in Azerbaijan covers crop production, livestock, and fishery farms, the Agricultural Insurance Fund (AIF) told Trend.
The livestock insurance includes both large and small cattle, covering dairy and meat cattle (cows and buffaloes), as well as goat and sheep farms.
Farmers can use agricultural insurance to protect their animals against a wide range of risks.
These risks include infectious diseases, snake and insect bites, poisoning from grass or feed, chemical poisoning, fire, wild animal attacks, and natural disasters such as earthquakes, landslides, hurricanes, storms and hail, floods or waterlogging, heavy rains, lightning, frostbite, and excessive snowfall.
Thanks to state support, farmers and farm owners can insure their animals against these numerous risks with minimal payments. Livestock insurance in Azerbaijan is very affordable. The base insurance premium rate is 4.89 percent for cows and buffaloes, and 4.6 percent for small livestock (goats and sheep).
Premiums are calculated based on the animal’s value, and fifty percent of the total is covered by the government as support to farmers.
For example, the insurance premium for a sheep worth 300 manat ($176) is 13.8 manat ($8.12). For a cow worth 1,000 manat ($588), the premium is 48.9 manat ($28.80). Since the state covers half the premium, the farmer pays only 6.9 manat ($4.06) for the sheep and 24.5 manat ($14.44) for the cow. This amount may increase or decrease depending on the value of the animal.
Farmers and livestock owners can also insure their animals against additional risks related to third-party actions. These include incidents like the animal being hit by a car, death during transportation accidents, electric shock, poisoning from chemicals during care, as well as theft, robbery, and more.
Including these additional risks, the insurance premium rates are 7.8 percent for large cattle and 7.37 percent for sheep and goats. In other words, with additional coverage, insuring a sheep or goat worth 300 manat ($176) will cost the farmer 11 manat ($6.47), and insuring a cow worth 1,000 manat ($588) will cost 39 manat ($23).
According to estimates, these premiums are significantly lower than the cost of maintaining the animals.
To note, the premium payment process has been greatly simplified. As part of efforts to improve farmers’ access to agricultural insurance, they can now insure their animals through the AsanPay payment system without leaving their home or workplace, using a mobile phone.
Insurance contracts can be signed for one-year, two-year, or three-year periods, with lower premium rates offered for longer durations.
Dairy cattle can be insured up to seven years of age, meat cattle up to three years, and small livestock up to five years. According to agricultural insurance rules, animals must be registered in the Electronic Agricultural Information System to be eligible for insurance.
Detailed terms and insurance rates for agricultural products covered by agricultural insurance can be found on the official website of the AIF. Additional information is available by following ASF’s social media accounts.
