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Crop Insurance Claims

Does crop insurance cover drought?

Standard state agro-insurance policies do not cover drought. They typically cover hail, storm, flood, and autumn frost (for citrus).

How soon must I report damage?

Usually, you must notify the insurer within 24 hours of the event via their hotline to ensure your claim is valid.

What is a deductible (franchise)?

It is the portion of the loss (e.g., 10%) that you must cover yourself. The insurer pays only for damages exceeding this threshold.

Is crop insurance mandatory?

No, it is voluntary, but highly recommended as the state subsidizes a significant part of the premium (50-70%) to make it affordable.

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Crop Insurance Claims and Compensation: Agro-Insurance Disputes

Agro-insurance is a crucial financial instrument for farmers, protecting crops from natural disasters (hail, storm, flood, autumn frost). Georgia operates a State Agro-Insurance Program covering a significant portion of the insurance premium. However, when an insured event occurs, farmers often face problems with claim reimbursement. Insurance companies frequently try to reduce payouts by undervaluing the damage or interpreting contract terms in their favor. For example, they may dispute whether the crop was destroyed by hail or disease. Lawyer assistance is essential for correctly assessing damages, negotiating with the insurer, and preparing a lawsuit if necessary.

What Does This Service Cover?

Specialists on Legal.ge offer full legal support in agro-insurance disputes:

  • Contract Analysis: Detailed study of the insurance policy and contract terms (deductibles, covered risks, exclusions).
  • Damage Assessment: Engaging independent agro-experts to determine the real amount of damage and preparing an alternative conclusion.
  • Negotiation with Insurer: Communicating with the insurance company, preparing claim letters, and demanding compensation.
  • Evidence Collection: Gathering meteorological reports, photo/video materials, and documents proving adherence to agro-deadlines.
  • Litigation: Preparing lawsuits and defending the farmer's interests in court to receive insurance compensation.
  • Complaint to Supervisor: Filing a complaint with the Insurance State Supervision Service regarding the company's unfair practices.

Common Situations When You Need a Lawyer

Agro-insurance disputes often arise in the following cases:

  • Damage Undervaluation: The insurer assessed the damage at 10%, while 80% of the crop is destroyed, and refuses payout citing the deductible.
  • Late Notification: The company refuses payout claiming the farmer delayed notification by 24 hours, even if there was an objective reason.
  • Causal Link: The company argues the crop was spoiled by drought or disease (not covered) rather than hail.
  • Payout Delay: The company acknowledges the loss but delays payment for months, hindering the farmer's preparation for the next season.
  • Land Registration: The company refuses to activate the policy due to inaccuracies in the plot's cadastral data.

Georgian Legal Framework

The field is regulated by the Civil Code of Georgia (insurance section) and the Law "On Insurance." Policies issued under the State Agro-Insurance Program are regulated by conditions approved by the Rural Development Agency.

Process: How Collaboration with a Specialist Works

The process includes:

  1. Event Occurrence: The farmer contacts the lawyer immediately for proper response.
  2. Documentation: Recording the fact (photo/video) and sending notification to the insurer.
  3. Assessment: Attending the insurer's representative visit and checking the protocol.
  4. Claim: Sending a substantiated claim in case of disagreement.
  5. Dispute: Starting litigation if payment is not received.

Why Choose Legal.ge?

A crop represents a farmer's entire year of work, and its loss is catastrophic. Legal.ge connects you with lawyers experienced in disputes with insurance companies. We will help you receive full and timely compensation. Protect your crop legally with Legal.ge.

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