OREANDA-NEWS. August 27, 2008. ROSNO’s Nizhny Novgorod branch has completed payment of insurance compensations to 6 agricultural farms of the region in connection with the repeated reseeding of winter grains in spring of this year. The insurance compensations totaled 1,137,129 roubles, reported the press-centre of ROSNO.

Natural anomalies have already produced negative effect on the future spring grain crops. Rain showers and strong winds observed in the Nizhny Novgorod in the first decade of August caused destruction of crops in the fields. ROSNO has already been told about the possible losses by 6 corporate insurants from the Diveevsky, Pavlovsky, and Gorodetsky districts of the region. ROSNO experts forecast increase in the number of applications, since the insurance protection of the spring grain crops has been provided to 15 Nizhny Novgorod farms.

"It is no secret that the success of any agricultural operation directly depends on the climatic factors. Farming in Russia’s Central Area has always been risky, and even more so in recent years, when the nature became even less predictable. Apparently, the agricultural producers are showing an increasing interest towards agricultural insurance as a tool protecting farms against financial losses, and this insurance sector is rapidly growing", noted the director of the Nizhny Novgorod branch of the Privolzhskaya Directorate Ms. Vera Yemelina. "Indeed, there is a risk not only for the farms, but for the insurers themselves. The reason is that insured accidents (for example, draught) usually occur in a vast area and simultaneously affect many of our insurants. Therefore, the amount of payments may be quite significant. Each year, ROSNO insures and makes insurance payments to the agricultural enterprises".