OREANDA-NEWS. November 27, 2009. Volgograd branch of Ingosstrakh IJSC paid RUB12.7mln to Masoud Khanbakhadov’s farm holding, covering partial loss of crop.

Future winter wheat crops ( "Don-93" wheat ) in Nikolayevsky district of Volgograd region, covering the total area of 5 489 hectares, and also agricultural products’ stock were insured by Ingosstrakh IJSC in April 2009 for the complete fire risks package, including risks of crop shortfall and complete harvest failure. The total coverage amounted to over RUB 23mln.

Losses occurred due to soil draught, resulting in partial or complete harvest failure (spring and a part of winter wheat crops) on the territory of Volgograd in the summer of 2009. The holding of Mr. Khanbakhadov was one of the many to sustain losses in Nikolayevsky district failing to receive the planned yield.

Several insurance examinations were performed to estimate the amount of losses that in the end confirmed that the insured event had taken place and Ingosstrakh paid the insurance compensation to the holding.

“My experience of managing an agricultural enterprise taught me that insurance as an absolute prerequisite”, said the head of the farm Masoud Khanbakhadov. “And my previous experience of working with Ingosstrakh determined my choice in favor of the company. The plans offered by the insurance company were completely efficient for me; a contract was signed in a very short period of time; and once the draught struck, the payments were made in full”.

Yelena Tatokhina, Director of the Volgograd branch of the Russian Agricultural Bank, said that accurate and timely action of the insurance company to pay compensations due enabled the holding to meet all of its obligations to the Bank.