Charter of Azerbaijan’s Agricultural Insurance Fund approved

  14 December 2019    Read: 1179
Charter of Azerbaijan’s Agricultural Insurance Fund approved

Azerbaijan’s Cabinet of Ministers has approved the Charter of the Agricultural Insurance Fund.

The decree on the charter’s approval was signed by Azerbaijani Prime Minister Ali Asadov.

The charter of the Fund consists of 11 points. The document reflects goals of the activity, commitments and rights of the Fund, the basics of its management, authorized capital, property and financial activities, the procedure for compiling and submitting audit and accounting reports, as well as other issues.

According to the charter, the Agricultural Insurance Fund is a non-profit legal entity created with the aim of ensuring the organization, development and sustainability of the agricultural insurance system in Azerbaijan, as well as the formation of a governing structure and monitoring of its activities.

In order to ensure the management of insurance commitments, the Fund uses the power to determine the policy of insurance and re-insurance, adopt an investment policy regarding the allocation of assets to investments to ensure efficient operations, conclude contracts with intermediary agricultural insurers for intermediary insurance activities, including adopting policies and rules in the direction of sustainability of agricultural insurance system.

One million manat ($588,238) will be allocated from the state budget for 2019 to form the charter capital of the Fund, 5 million manat ($2.9 million) - from the state budget for 2020, and 3 million manat ($1.7 million) from the state budget for 2021.

According to the charter, the Board of Trustees is created in the Fund, acting on a voluntary basis and consisting of five members. The Board is formed by two representatives of Azerbaijan’s Agriculture Ministry, one representative of Azerbaijan’s Finance Ministry, one representative of the Central Bank of Azerbaijan (CBA) and one representative of the Association of Farmers.

The chairman of the Board of Trustees is a representative of the Agriculture Ministry.

The Law “On Agricultural Insurance” will come into force Jan. 1, 2020.

The Fund was established in accordance with the decree by Azerbaijani president “On the application of the law “On Agricultural Insurance” and the establishment of the Agricultural Insurance Fund” dated Aug. 19, 2019.

 

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