MOSCOW, February 22 - RAPSI, Sergei Feklyunin. A regional commercial court will hear on February 27 the Russian Dairy Company's lawsuit against the MAKS insurance company for $430,000 in indemnity for the crops lost due to a drought in 2010.

Earlier the proceedings were suspended to allow experts time for appraisal "in terms of compliance with the land treatment rules in growing crops and the impact of the rules' violation on crop capacity considering weather conditions in summer 2010."

As soon as the court-ordered appraisal was completed the proceedings resumed.

The company insured almost 3,000 hectares of winter wheat in late 2009.

In the plaintiff's opinion the drought inflicted 17.5 million rubles ($588,000) losses on the insured fields. The insurer acknowledged the insured event and paid 4.7 million rubles ($158,000) in January 2011, but refused to pay the rest, so the plaintiff seeks the remaining indemnity amount.

MAKS is the second insurer involved in litigation with Russian Diary Company. It filed a similar lawsuit against Military Insurance Company (VSK) in March and in August they entered into a settlement agreement, whereby the diary company received 10 million rubles ($335,800) while the indemnity allegedly totaled 11.8 million rubles ($396,200).

Russian Diary Company was established in 2007. It is engaged in diary stock farming and crops growing. It also renovates old milk farms and builds new ones.