Number of companies involved in agricultural insurance will not be limited
All the interested insurance companies will be able to become involved in the subsidized insurance by the state of production risks in agriculture. Relevant amendments to the legislation were approved by the Government, Info-Prim Neo reports.
Minister of Agriculture and Food Industry Vasile Bumacov said the subsidized insurance of agricultural production risks is currently performed only by the insurers that obtained accreditation by taking part in the contest. But this provision limits the number of insurance companies involved in this process and contributes to the appearance of disloyal competition. Thus, it is not possible to engage more companies in the process so as to reduce the insurance premiums.
In 2005-2006, only two of the 25 insurance companies working in Moldova - Moldasig and Moldcargo - dealt with subsidized crop insurance.
Under the amendments, the Agency for Payments and Intervention in Agriculture will be responsible for managing the sums for subsidized crop insurance.