Livestock insurance protects farmers from unexpected financial losses
Cattle farmers can insure their livestock through the Agricultural Insurance Fund on favorable terms. Under the state-supported agricultural insurance mechanism, sheep and goats can also be insured alongside cows and buffalo.
Abdulrahman Sadikhli2 min read
Cattle farmers can insure their livestock through the Agricultural Insurance Fund on favorable terms. Under the state-supported agricultural insurance mechanism, sheep and goats can also be insured alongside cows and buffalo.
In the Goygol district, insuring 1 head of cattle for 1 year costs the farmer 24 manat. The total insurance premium is 48 manat. Since the state pays 50 percent of the insurance premium, the amount payable by the farmer is 24 manat.
According to the calculations, the insurance value of 1 head of cattle is set at 1000 manat, while the deductible is 10 percent. In this case, the total insurance value of 5 head of cattle is 5000 manat, and insuring them for 1 year costs the farmer a total of 120 manat.
Under the agricultural insurance framework, cattle can be insured against natural disasters, infectious diseases, poisoning from grass and feed, snake and insect bites, fire, attacks by wild animals, actions by third parties and other risks.
When an insured event occurs, the 10 percent deductible specified in the contract is taken into account when calculating the payment. If cattle with an insurance value of 1000 manat are lost, a deductible of 100 manat is deducted and the farmer receives an insurance payment of 900 manat.
By paying just 24 manat for one year's insurance of an animal with an insurance value of 1000 manat, the farmer can receive an insurance payment of up to 900 manat if an insured event occurs. For 5 head of livestock, the total insurance coverage is 5000 manat in return for the 120 manat insurance premium paid by the farmer.
It should be noted that the agricultural insurance mechanism helps protect farmers from financial losses that may arise as a result of natural disasters, diseases and other risks, ensure the continuity of agricultural activity, and maintain stable production in livestock farms. The state's coverage of 50 percent of the insurance premium also enables farmers to insure their livestock on more favorable terms.
