Law 69 1993 by which Agricultural Insurance is established in Colombia

The Law establishes Agricultural Insurance in Colombia as an instrument to encourage and protect agricultural, forestry, fishing and aquaculture production. Its objective is to economically improve these sectors, promote their economic order and contribute to the overall development of the country. The insurance protects agricultural, forestry, fishing and aquaculture investments financed with credit resources from the National Agricultural Credit System or with the producer's own resources. Public and private insurance entities, as well as other entities supervised by the Banking Superintendency, are authorized to issue policies directly or through reinsurance or coinsurance agreements. The Agricultural Industrial and Mining Credit Fund and other state entities must issue policies, especially when there are no private entities that do so. The insurance coverage includes damages caused by natural risks (meteorological, geological, biological), anthropic, market and commercialization, transportation, among others. Agricultural insurance is gradually implemented by region and crop, and the contracting of technical assistance is required. The National Agricultural Risk Fund (FNRA) is created, administered by FINAGRO, with the objective of subsidizing insurance premiums, financing the technical strengthening of insurance, providing subsidies for risk management instruments and obtaining relevant information. The FNRA's resources come from items from the General Budget of the Nation, insurance premiums, credits, donations, contributions from public or private entities and FNRA profits.