Government loses patience with voluntary agricultural scheme

The scheme will be mandatory from 2009 after the voluntary arrangement failed to attract enough custom

The Hungarian government has confirmed that a new compulsory regime for the insurance of agricultural risks will replace the current voluntary scheme from the beginning of 2009. The scheme is expected to collect HUF2.5bn (US$12mn) in premiums and the government has pledged to match this amount in the event that claims exceed premium income. The cost of insurance has also been reduced to attract a wider range of crops to be insured.