The farmer from Yershov city (Saratov oblast) applied for the government subsidy insuring non-existing crops. He (Yershov-Agro) submitted false documents about insuring winter crops at the area of 300 ha and signed insurance contract with regional office of insurance company “Podderzhka” (“Support”).
Comments by www.agroinsurance.com: The similar cases happen often with the programs of subsidized crop insurance. The basic instrument to prevent crop insurance fraud should be fields survey by the representatives of insurance companies. The subsidized program designed – Ministry of Agriculture (Federal agency for subsidized crop insurance) – should allocate subsidies only if the application papers include field survey reports. In such a case the insured and the authorized insurance company, member of the subsidized crop insurance program, will be liable for submitting fause information. Besides, the farmers signing the crop insurance contracts should be informed about their liability on fraudulent actions.