Whereby The Agricultural Insurance Established In Colombia, The National Agricultural Risk Fund Is Created And Other Provisions On Agricultural Credit

Original Language Title: Por la cual se establece el Seguro Agropecuario en Colombia, se crea el Fondo Nacional de Riesgos Agropecuarios y se dictan otras disposiciones en materia de crédito agropecuario

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LAW 69 OF 1993
(August 24)
Official Gazette No. 41,003, of 24 August 1993
Whereby the Agricultural Insurance established in Colombia, the National Agricultural Risk Fund is created and dictate other provisions on agricultural credit. Summary

Term Notes
CONGRESS OF COLOMBIA DECREES
:
ARTICLE 1o. ESTABLISHMENT OF AGRICULTURAL INSURANCE. Establécese agricultural insurance in Colombia as an instrument to promote and protect food production, seek economic improvement of the rural sector, promoting economic system of the agricultural sector and as a strategy to contribute to global development.
The object of insurance is the protection of agricultural investments financed with credit from the national system of agricultural credit or equity producer, anticipating the needs of production and domestic and international marketing and the development of the economic sector primary.
Article 2.
. Entities empowered to issue policies.
1. Public insurers and private entities and other entities supervised by the Banking Superintendency, authorized by law to exercise insurance activities may assume insurance risks under the conditions established by the National Government, through the issuance direct policies or through agreements reinsurance or coinsurance.
2. Box Industrial Agricultural Credit and Mining, the mixed economy companies and industrial and commercial enterprises that have as their object insurance operations, may issue at any time policies of agricultural insurance, but especially be obliged to do when no private entities issuing such policies are, as long as the risks covered do not exceed the scope of this Act.
3. Insurance companies from abroad directly or through authorized intermediaries. The Financial Superintendence of Colombia may establish the compulsory registration of these companies or their intermediaries. Effective Notes

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PARÁGRAFO. Rates policies issued in the development of the provisions of this Article shall comply with the technical requirements set out in Article 3.1.3.0.3. the Organic Statute of the Financial System or rules that substitute or add.

ARTICLE 3. AGRICULTURAL INSURANCE COVERAGE. The agricultural insurance covers the damage caused by natural and biological hazards beyond the control of the policyholder, insured or beneficiary affecting agricultural activities. The Ministry of Agriculture and Rural Development shall regulate the application of this standard. Effective Notes

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ARTICLE 4. AGRICULTURAL INSURANCE. The National Government, through the National Commission on Agricultural Credit, established agricultural insurance in accordance with the following guidelines:
a) The calculation of the agricultural insurance premium will take into account the agricultural risk maps (probability occurrence or recurrence of events and crop vulnerability), actuarial calculations and technical studies prepared for the purpose;
B) Insurance will be implemented progressively, according productions, regions and risks;
C) Agricultural insurance will cover deductible depending on the type of insurance, the kind of production and the risks insured, which will be made mandatory by the insured;
D) National Agricultural Credit Commission may bring the events in which credits to the agricultural sector should consider the coverage of agricultural insurance;
E) The insurance will cover the total investments per production unit financed with credit or equity producer in agricultural activities. This is without prejudice to the deductible that the law supports and endorses the Financial Supervisory Authority.
PARÁGRAFO. The National Government will establish the rules for insurance companies underwriting perform the functions and coverage of the risks listed in the law within six months. Effective Notes

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The 5th ITEM. REINSURANCE PROGRAMS. Box Industrial Agricultural Credit and Mining, the mixed economy companies and industrial and commercial enterprises that have as their object insurance operations and reinsurance may provide reinsurance programs exist to provide agricultural insurance according to the guidelines determined by the Government for national development.


ARTICLE 6o. NATIONAL AGRICULTURAL FUND RISK. Create the National Agricultural Risk Fund which will treat Fund-Account administered by the Fund for Financing the Agricultural Sector, Finagro, or his substitute, without legal or plant personnel. Effective Notes

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ARTICLE 7. OBJECT OF THE FUND. Effective Notes

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Article 8. NATIONAL RESOURCES AGRICULTURAL FUND RISK.
1. Contributions from the National Budget.
2. A percentage of the proceeds of premiums paid in agricultural insurance referred to in this Act, periodically determined by the national government, and not exceeding 20% ​​of the net value thereof.
3. A percentage of the profits of the national government in mixed economy companies and industrial and commercial enterprises of the State, in accordance with the regulations issued by the National Government.
4. Profits of the National Agricultural Risk Fund.

Article 9. CREDIT LINES. The National Government and FINAGRO facilitate access of smallholder agricultural insurance users to special credit lines for reforestation and land improvement in soft conditions, according to regulations issued to effect the National Agricultural Credit Commission.
ARTICLE 10.
AGRICULTURAL FUND OBJECT OF WARRANTIES. Without prejudice to the provisions of Article 28 of Law 16 of 1990, the Agricultural Guarantee Fund may support the claims of medium and long term for large and medium producers, for regions, products and economic conditions for such purpose determined by the National Agricultural Credit Commission, as stipulated by article 1. Law 34 of 1993.

ARTICLE 11. ADDITIONAL RESOURCES FOR AGRICULTURAL GUARANTEE FUND. In addition to the sources of funds provided for in Article 30 of Law 16 of 1990, the Agricultural Guarantee Fund will have funds from donations and public and private, national or international contribution, in order to ensure compliance with the purposes indicated in the law of its creation and in this Act.
PARÁGRAFO. The numeral 3o. Article 30 of Law 16 of 1990 will read:
"3 No less than 25% of gross profit in each year then settled Finagro The percentage will be defined annually by the board of Finagro...".

ARTICLE 12. CAPITAL FUND TO FINANCE THE AGRICULTURAL SECTOR. Article 9o., Paragraph 1o. of Law 16 of 1990 will read:
"PARAGRAPH 1. The contributions of the Nation shall not be less than fifty one percent (51%) of the paid capital Finagro.."

ARTICLE 13. NATIONAL COMMISSION FOR AGRICULTURAL CREDIT. 5th hereby added article. of Law 16 of 1990, as follows:..
"PARAGRAPH 3. Only the Director of the National Planning Department may delegate its assistance to the National Agricultural Credit Commission Such delegation may only be made in the Head of Unit for Agrarian Studies . "

ARTICLE 14. RESOURCES FUND TECHNICAL ASSISTANCE TO SMALL FARMERS. Repealed Article 21, paragraph b) of the 5th Law. 1973.

CONTROL ARTICLE 15. INVESTMENT IN AGRICULTURAL CREDITS. Article 37 of Law 16 of 1990 will read:
"control investments in agricultural credits, is subject to the regulations for that purpose by the National Agricultural Credit Commission, likewise, the latter shall regulate a line special credit to finance the provision of technical assistance in agricultural credits. "

ARTICLE 16. "For the effective conduct of its operations and strengthen its capacity to service the agricultural sector, the Agrarian, Industrial and Mining Credit, will be sufficiently capitalized by the Government. For this purpose and development of the provided for in Article 17 of Law 51 of 1990, the capitalization ordered by the Nation in the Fund may be met by providing shares owned by the Nation in other financial institutions, valued for its intrinsic value.
around case and in order to facilitate early restoration of heritage institution, the nation can bear all or part pension liabilities by the Fund as the financial rehabilitation process develops.
PARÁGRAFO. the obligations assumes the National government in implementing this Article may consist in securities issued in favor of the Fund, the terms and conditions indicate the national government.


Article 17. This Law governs from the date of its publication and repeals provisions that are contrary.
The President of the Senate of the Republic,
TITO EDMUND WHEEL GUARÍN.
The Secretary General of the Senate of the Republic,
PUMAREJO PEDRO VEGA.
The President of the Chamber of Representatives,
CÉSAR PÉREZ GARCÍA.
The Secretary of the Chamber of Representatives, DIEGO VIVAS
TAFUR.
Republic of Colombia - National Government
published and execute.
Given in Bogota, DC, on the twenty-four (24) days of August
in 1993 (1993).

César Gaviria Trujillo Minister of Finance and Public Credit, RUDOLF HOMMES
RODRÍGUEZ.
The Minister of Agriculture, JOSÉ ANTONIO OCAMPO
Gaviria.



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