December 20, 2011

Russian insurance firm pays nearly US$265,000 for crop damage

Russia's Ingosstrakh Insurance Company has paid RUB8.5 million (US$264,727) to Gigant LLC, in the Kireevskiy district of Tula oblast, for winter wheat and winter rye crop damages.

Winter wheat and winter rye crop on the total area of 4,085 ha were insured against loss or partial loss for the total amount of RUB39.2 million (US$1.22 million).

Insured events were damping-off and soil drought. In order to ascertain the damage, an investigation was carried out, following the results of which the event was considered as insured, and Ingosstrakh Insurance Company has paid to commercial farm indemnification in accordance with the terms of insurance agreement.

The insured crop was the subject of pledge of Tula regional branch of Rosselkhozbank OJSC as the part of the loan.

Ingosstrakh Insurance Company and Gigant LLC have been cooperating in the sphere of agroindustrial insurance since 2010.