The draft Law No. 5104 “On Amending the Tax Code of Ukraine to Improve the Legal Regulation of Insurance of Agricultural Products with State Support” changes the model of state support for insurance of agricultural products – it abolishes the obligation of insurers insuring agricultural products with state support to form and maintain the Agrarian Insurance Pool, through which state support was provided (joint and several liability of insurance companies was provided for – and now only 4 companies are included in the Pool).
The draft Law No. 5104 “On Amending the Tax Code of Ukraine to Improve the Legal Regulation of Insurance of Agricultural Products with State Support”:
- increases the income tax rate under insurance contracts for agricultural products by 0.5% – the extra funds will be used to support insurance of agricultural products;
- private entrepreneurs will be added to the list of insured persons;
- the competence to determine the conditions for ensuring the solvency of the insurer is transferred from the Cabinet of Ministers of Ukraine to the NBU;
- increased requirements regarding the formation of insurance reserves will be applied in the sphere of insurance of agricultural products with state support;
- the definition of insurance contract is changed: the norm regarding the use of standard insurance contracts to be approved by the Ministry of Agrarian Policy together with the NBU is abolished;
- a list of insurance risks for crops, loss of livestock, fish, aquatic bioresources, bee families in hives, including their productivity, shortfall in expected profits is established;
- the norm regarding determination of the unit price of grown products is abolished.