OREANDA-NEWS. November 06, 2009. The branch of Ingosstrakh IJSC in Volgograd paid RUB 7.5mln to ZAO Progress based in Nikolaevsky district of Volgograd region for the partial loss of winter crop.

The future winter crop (the Saratovskaya 7 rye and DON 93 wheat) on the total area of 4320 hectares, as well as the trade stock of agricultural products   were insured by Ingosstrakh IJSC in April 2009. Total insured amount was about RUB 15mln.

The insured event was the soil drought in all the districts of Volgograd region in summer 2009.  This caused loss of crop in different district on the total area of 400 thousand hectares. In Nikolaevsky district alone the lost profit totaled almost RUB 280mln because of the loss of all winter crop, runch and part of winter gore. ZAO Progress was among the farms in Nikolaevsky district that failed to get the planned yield.

To identify the damage, several examinations were performed. As a result, the event was recognized as an insured one, and Ingosstrakh IJSC paid compensation to the farm.

“The management of the farm has been contemplating getting insurance for a long time, since the farm is located behind the Volga river in a very arid area”, - said Masud Khanbakhadov, General Director of ZAO Progress. – “We chose Ingosstrakh because the insurance program they offered matched our requirements, and the terms were simple and transparent. When the insured event happened, it was settled within the period stipulated in the insurance contract, which enabled us to timely meet our obligations to the pledge holder – the Russian Agricultural Bank”.

ZAO Progress is the client of the Russian Agricultural Bank since 2006. Early this year the farm was extended another loan on pledge of the future wheat crop. Elena Tatokhina, the Director of the Volgograd regional branch of the Russian Agricultural Bank, said that the compensation paid by Ingosstrakh IJSC allowed the farm to meet its obligations to the Bank in financially difficult times.