The Agricultural Insurance Fund was established by a decree to organize, develop, and ensure the sustainability of the agricultural insurance system.

According to the Law of the Republic of Azerbaijan "On Agricultural Insurance," the agricultural insurance system in the country is built on public-private partnership principles. The Agricultural Insurance Fund is a non-commercial legal entity established by the state, which assumes risks and provides insurance payments. The Managing Company, on the other hand, is a co-insurer established by non-life insurance companies with a valid license, responsible for organizing the conclusion of insurance contracts.

The Charter of the Agricultural Insurance Fund was approved by the Resolution No. 472 of the Cabinet of Ministers of the Republic of Azerbaijan dated December 11, 2019, based on Subparagraph 2.1.6 of the Decree No. 809 of the President of the Republic of Azerbaijan dated August 19, 2019, on the application of the Law No. 1617-VQ of the Republic of Azerbaijan dated June 27, 2019, "On Agricultural Insurance" and on the establishment of the Agricultural Insurance Fund.

An agricultural insurance contract is concluded between the insured and the Managing Company. The Managing Company acts as a co-insurer on behalf of the Agricultural Insurance Fund and is responsible for managing the agricultural insurance system. The Managing Company is established and operates as an open joint-stock company, with equal shares owned by legal entities licensed to conduct non-life insurance activities within the territory of the Republic of Azerbaijan.

The Agricultural Insurance Fund applies advanced corporate governance standards in its operations and management. By utilizing co-insurance, the Fund reduces investment risks, increases farm security, and facilitates the expansion of production.

The agricultural insurance system is organized on the principles of voluntary insurance.

More details: Aqrar Sığorta Fondu