Aid for the payment of insurance premiums and for financial contributions to mutual funds
Article 28
1. Aid for the payment of insurance premiums and for financial contributions to mutual funds shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation. 2. Aid for the payment of insurance premiums shall not: (a) constitute a barrier to the operation of the internal market for insurance services; (b) be limited to insurance provided by a single insurance company or group of companies; (c) be made subject to the condition that the insurance contract be taken out with a company established in the Member State concerned. 3. The insurance shall be intended to cover losses caused by any of the following: (a) natural disasters; (b) an adverse climatic event which can be assimilated to a natural disaster and other adverse climatic events; (c) animal diseases or plant pest or protected animals; (d) compensate for the insurance premiums for insurance covering the costs of the removal and destruction of fallen stock. 4. The insurance shall: (a) compensate only the cost of making good the losses referred to in paragraph 3; (b) not require or specify the type or quantity of future agricultural production. 5. Member States may limit the amount of the insurance premium that is eligible for aid by applying appropriate ceilings. 6. The mutual fund concerned shall fulfil the following cumulative conditions: (a) be accredited by the competent authority of the Member State in accordance with national law; (b) have a transparent policy towards payments into and withdrawals from the fund; (c) have clear rules attributing responsibilities for any debts incurred. 7. Member States shall define the rules for the constitution and management of the mutual funds, in particular for the granting of compensation payments, as well as for the administration and monitoring of compliance with those rules. Member States shall ensure that the fund arrangements provide for penalties in case of negligence on the part of the beneficiary. 8. The aid intensity shall be limited to 70 % of the costs of the insurance premium or of the financial contribution to a mutual fund.