S/1) What is TARSİM?

TARSİM, or the Agricultural Insurance Pool, is a pool established for the management of state-supported agricultural insurance policies, the execution of production and damage processes, risk sharing, and reinsurance protection in Turkey.

In simple terms, it is a system where farmers who purchase insurance receive premium support, and in case of damage due to a risk covered by the policy, a compensation payment is made according to the principles and techniques of insurance.

With the 5363 numbered Agricultural Insurance Law, “Risk Management in Agriculture” gained a new dimension and momentum, and principles for agricultural insurance practices were defined to ensure that producers are compensated for damages caused by specified risks and to provide premium support.

S/2) What are the Duties of TARSİM?

According to the 5363 numbered “Agricultural Insurance Law” dated June 14, 2005, the duties of TARSİM include:

• Premium collection,
• Damage assessment,
• Compensation payment,
• Finding reinsurance coverage and conducting statistical studies,
• Advertising and fund management.

To implement these operations, the Agricultural Insurance Pool Operating Company was established under the pool. The Management Board of the Pool consists of seven members: two from the Ministry of Agriculture and Forestry and two from the Treasury Undersecretariat, and one from the Turkey Insurance and Reinsurance Companies Association, one from the Union of Turkish Agricultural Chambers, and one from the Agricultural Insurance Pool Operating Company.

In fact, with the modern risk management system provided by the Agricultural Insurance Pool, producers’ products exposed to risks are insured, ensuring the sustainability of production and reducing the uncertain burden on public budgets due to risks. The aim is to provide long-term income stability to producers.

S/3) What Types of Insurance are Available?

There are seven different types of insurance:

1. Crop Insurance,
2. Greenhouse Insurance,
3. Large Livestock Insurance,
4. Small Livestock Insurance,
5. Poultry Insurance,
6. Beekeeping Insurance,
7. Aquaculture Life Insurance.

S/4) Is there Government Support for Premium Payments?

The amounts of premium support provided by the government, based on products, risks, regions, and farm scales, are determined each year by the Council of Ministers based on the proposal of the Pool’s Management Board and approval by the Ministry.

Since 2016, the government covers 50% of the insurance premium (2/3 in case of frost coverage) for producers who insure their crops, greenhouses, large and small livestock, poultry, and aquaculture products. The goal is to encourage producers to take out insurance.

S/5) What Risks does TARSİM Cover?

The system insures crop products and large/small livestock.

• Crop Insurance covers damage from hail, storms, tornadoes, fire, landslides, earthquakes, floods, and water damage. For fresh fruits, vegetables, and cut flowers, it also covers quality loss from hail. For fruit crops in open fields, it additionally covers frost risk.
• Greenhouses are also insured against damage caused by storms, tornadoes, fire, landslides, earthquakes, vehicle collisions, snow and hail weight, and floods.
• For large and small livestock, TARSİM covers losses due to various animal diseases (except for mandatory reporting diseases), death from pregnancy, birth, or surgery, abortion and death of offspring, accidents, snake and insect bites, poisoning from toxic pasture plants, natural disasters, sunstroke, and death caused by fire or explosion. Poultry and aquaculture are covered under life insurance against death risk.

S/6) When Can Damage Claims be Made?

For crop insurance, claims can be made within one month after the harvest date declared by the producer in the policy or after the completion of the file. For Livestock Life Insurance, claims can be made within one month after the completion of the file.

S/7) What are the Legal Regulations Regarding TARSİM?

Legal regulations regarding TARSİM include:

• 5363 Agricultural Insurance Law,
• Regulations on the Operation Procedures and Principles of the Agricultural Insurance Pool,
• Agricultural Insurance Implementation Regulations,
• The Cabinet decision regarding “Risks, Products, and Regions to be Covered by the Agricultural Insurance Pool and Premium Support Rates”,
• Contracts made under this framework.

In the system implemented through commercial and private insurance companies, the role of the authorized commercial insurance companies is to provide intermediary services in return for a commission fee. When arranging policies, they are obligated to explain this state-supported insurance system to farmers/producers accurately and comprehensively. These insurance companies are responsible for preparing standard policies on behalf of TARSİM, providing a copy of the policy to the producer/farmer/insured, collecting premiums from the insured, transferring them to the pool account within the legal time frame, and reporting damage notifications to TARSİM’s headquarters in Istanbul. These companies have no other authority or responsibility beyond this.

S/8) What is the Level of Public Interest in TARSİM?

With the government’s contribution, interest in the TARSİM system has been increasing. Looking at the statistical data for 2015, it can be observed that approximately 1,375,300 policies were issued, 19,250,000 decares of land were insured, and around 960,000,000 TL in premiums were paid (an estimated 35% increase compared to the previous year). Additionally, approximately 720,000,000 TL in damage/compensation payments were made to insured producers (an estimated 42% increase compared to the previous year).

Av. Şefik ZİROĞLU
www.sefikziroglu.av.tr