Agricultural Insurance
Agricultural Insurance
Agricultural Insurance
Agricultural Insurance is a product designed to protect farmers’ agricultural efforts under policy-based coverage. The products, risks, regions, and enterprise scales to be covered by the Agricultural Insurance Pool (TARSİM), as well as the amount of state premium support, are determined annually by Presidential Decree. This system aims to provide state support for insurance premiums paid by farmers, to gradually expand and diversify the scope of coverage, to make compensation payments in the shortest time possible, and to develop and promote agricultural insurance across the country.
What Does Agricultural Insurance Cover?
Agricultural Insurance covers crops, animals, greenhouses, agricultural tools and machinery, and agricultural structures. Damages resulting from drought, hail, frost, floods, groundwater rise, storms, tornadoes, earthquakes, landslides, fires, accidents, and animal diseases are included in the insurance coverage for livestock, buildings, tools, and machinery. The 2019 Agricultural Insurance practices and the Presidential Decree No. 380 dated 26/11/2018, which includes the risks, products, regions, and premium support ratios to be covered in 2019, was published in the Official Gazette on 27/11/2018 and came into effect. According to this decree: - For crops, the hail main risk and additional risks such as storm, tornado, fire, landslide, earthquake, flood, and inundation are offered as a hail package. - Optional risks include: • Frost risk for fruits grown in open fields, • Hail net systems and the structures underneath for orchards and vineyards, • Rain damage for cherry, fig, and grape crops, • Wild boar damage to field crops, vegetables, and strawberries, • Full damage caused by various risks to fruit trees, vines, and saplings, • District-based drought yield insurance for cereals and legumes in dry farming areas, • Greenhouse insurance including storm, tornado, fire, landslide, earthquake, flood, car crash, snow, and hail load, • Livestock death risk, with optional theft and terrorism risks, • Poultry death risk depending on the production system, • Aquaculture mortality risks in seas and inland waters, • Risks for active and registered beehives including wild animal attacks and transportation. Farmers registered in the Farmer Registration System or other Ministry databases are eligible for coverage under general conditions and tariffs provided by TARSİM.
Who Can Benefit from Agricultural Insurance Premium Support?
Producers must be registered in the databases of the Ministry of Agriculture and Forestry, as stipulated by Article 20 (d) and Provisional Article 2 of Law No. 5488, and Article 13 of Law No. 5363, in order to benefit from premium support. For this: - Crop producers must register or update their records in the Farmer Registration System (ÇKS), - Greenhouse operators must be in the Greenhouse Registration System (ÖKS), - Livestock owners must register in the Livestock Information System (HAYBİS), - Aquaculture producers must register in the Aquaculture Registration System (SKS), - Beekeepers must register in HAYBİS and the Beekeeping Registration System (AKS). Furthermore, producers who do not obtain agricultural insurance for risks in the application year cannot benefit from Law No. 2090 dated 20/06/1977.
Coverage and Insured Perils
For all crops: - Losses in quantity caused by hail, storm, tornado, fire, earthquake, landslide, flood, and inundation, - Quality losses caused by hail in fresh fruits, vegetables, and cut flowers. Optional coverage includes: - Frost-induced losses in fresh fruits, - Damages to hail net and support systems and the products beneath them from various risks, - Wild boar damage to crops, vegetables, saplings, and strawberries, - Rain damage to cherries and grapes during ripening and harvest; quality losses in figs produced for fresh consumption or drying, - Losses in cereal straw due to various risks, - Damage to vine leaves produced for pickling. Optional additional coverages cannot be purchased alone. For economically productive fruit trees and saplings, full losses from various risks can be insured independently or alongside the crop. Policy Process: The farmer must update their ÇKS records with current land and crop details. Then, they apply to a TARSİM-affiliated insurance company or agency. The agency checks the data in the TARSİM system and creates the policy under the relevant terms. A copy of the info form and the policy is given to the insured. Premium Payment: - 50% of the crop insurance premium is state-supported. - If frost coverage is included in fruit insurance, 2/3 of the frost premium is state-supported. - 15% of the remaining premium is paid upfront; the rest must be paid within one month of the policy's end date. - For tree/sapling policies, the remaining premium can be paid in up to five installments.
Claim Notification / Expert Assessment / Payment Process
In the event of a covered risk, the insured must notify TARSİM via the insurer or agent within 10 days for frost damage, and within 15 days for other damages. Damage assessment is conducted by experts appointed by TARSİM. Final compensation is paid within 30 days via bank, following file completion. Compensation is not paid before harvest unless the product is completely lost, in which case payment can be made earlier per insurance principles. If damage occurs early in the season and replanting is possible, compensation is paid for incurred costs based on general conditions and tariffs.
