Crop Insurance Claims — the Legal Foundations
The legal basis of a crop insurance claim is the law on insurance. The state-subsidized agricultural insurance programme is a separate matter and is not the subject of this page: what is described here are the general norms on which every insurance claim rests — the figures of the insured and the beneficiary, the protection of consumer rights in the insurance sphere, and the sanctions with which the state answers violations of those rights.
The Insured and the Policyholder
The insured is the person with respect to whom insurance is carried out. The policyholder may at the same time be the insured, unless the insurance contract provides otherwise. In crop insurance this means that the farmer who concludes the contract is usually both the policyholder and the insured at once.
Legislation on compulsory insurance may oblige the policyholder to insure a third person. In voluntary insurance the policyholder may designate a third person as the insured; in that case the object of insurance is the property of the insured and the interests connected with it. In property insurance, the insured who is not the policyholder must have an interest in the preservation of that property.
In compulsory insurance the consent of the third person is not needed for concluding the contract in which they will be designated as insured; in voluntary insurance that person’s refusal makes the contract impossible to conclude, and if it was already concluded — leads to its modification or termination. In property insurance the policyholder is obliged to notify the third person of the intention to insure their property, with an exact definition of the objects.
The Beneficiary — Who Receives the Compensation
The beneficiary is a natural or legal person who receives insurance compensation according to the insurance contract or the legislation on insurance. A beneficiary may be determined both in personal and in property insurance. In compulsory insurance the beneficiary is determined by the legislation regulating the given type of insurance, while in voluntary insurance the beneficiary is determined by the policyholder. The insured is himself the beneficiary, unless legislation or the contract provides otherwise; and conversely — if no beneficiary is determined by the contract, the insured is deemed the beneficiary.
A contract of insurance of ownership for the benefit of a beneficiary may be concluded even without indicating the beneficiary’s name; on conclusion the policyholder is given an insurance certificate to bearer, and in that case the recipient of the benefit is the person who presents that document to the insurer. In crop insurance this determines who, and on the basis of which document, receives the compensation.
Consumer Protection and Sanctions
The insurer and the insurance intermediary are obliged to secure the protection of consumer rights at every stage — pre-contractual relations, the operation of the contract, and the full performance of the obligations under it. A consumer may apply to the insurer’s relevant structural unit, the court or any other authorized institution where the obligations of the insurer or the insurance agent are improperly performed; in case of violation of rights — also to the supervision service.
The supervision service may apply sanctions to the insurer if the insurer violated a provision of the law, a norm or instruction of the service, violated reporting deadlines or submitted incorrect information, or violated the requirements of the law on consumer protection. The system of sanctions is gradual: a written warning; special measures or an instruction demanding cessation of the violation; a monetary fine; suspension of an administrator’s signing authority; suspension or restriction of profit distribution; suspension of specific operations and, in a special case, compulsory administration; and finally — cancellation of the insurance license. Sanctions are also provided for the insurance broker and the administrator.
Building the Claim and Its Stages
In preparing the claim, three questions decide everything: who you are in this relationship — policyholder, insured, or beneficiary; what the object of insurance is and what event occurred; and by which mechanism you protect your right — through the insurer’s internal structure, the supervision service, or the court. The exact answers to these three questions give the claim its foundation.
The first stage is the study of the insurance contract: the object of insurance, the insured and the beneficiary, the covered events, and the obligations. The second stage is the fixing and documentation of the insurance event. The third is the submission of the demand and, if necessary, the transfer of the dispute to the supervisory or court level. At every stage keep in mind the norm on consumer protection: it extends from pre-contractual relations to full performance of obligations, and the sanctions system turns a precisely documented violation into a real lever of the case.
Frequently Asked Questions
Below are the answers to the questions most frequently asked about crop insurance claims.
Who is the insured in crop insurance?
The person with respect to whom insurance is carried out; the policyholder may himself be the insured — for the farmer this is typical.
Who receives the insurance compensation?
The beneficiary — the person who receives compensation under the contract or legislation; if no beneficiary is determined, the insured is deemed the beneficiary.
Where to complain against the insurer?
To the insurer’s relevant structural unit, the court, or any authorized institution; in case of violation of rights — also to the supervision service.
What sanctions does the service have?
Warning, instruction, monetary fine, suspension of administrators, restriction of profit distribution, suspension of operations, and cancellation of the license.
How We Help on Legal.ge
The specialists of Legal.ge help prepare crop insurance claims: we explain the figures of the insured and the beneficiary, document the insurance event and select the mechanism of protection — from the insurer’s internal structure to the supervision service and the court. Contact us — a claim begins with the right figures and sequence.