CROP INSURANCE POLICY
DEFINED EVENTS: Physical loss of or damage to growing Crop (wheat/maize/rice/barley) directly caused by:
1. Drought (excluded under irrigation)
A deficiency in soil moisture content as required to sustain optimal crop growth in all developmental stages. Trigger point is when precipitation for the whole growing season falls below 50% of long term average precipitation in as far as this trigger affects the final yield. This measure of precipitation will be obtained from a Kenyan Class A Weather Station closest to the area affected. Crop inspections (Emergence, Mid Season and Pre-harvest) reports will complement and track the extent of drought and other conditions on the insured crop.
Manifestation of damage resulting in a loss of yield indirectly caused as a result of a hail strike and frost. The incident of frost has to be verified by the nearest Class A Weather Station.
An event where mechanical damage is evident to such an extent that the plant is permanently damaged or the harvest severely lodged.
Any event where above normal rainfall occurs to such an extent that irreversible damage is caused to crop irrespective of its growth stage.
LAND LIMIT: It is hereby warranted that any one continuous block of the Crop (wheat/maize/wheat/Barley) shall not exceed 200 hectares and such blocks of the plant shall be surrounded by at least 8 metre fire guards cleared of all combustible material except growing vegetation up to a height of 150mm.
DEADLINE: It is agreed that the period of insurance shall expire at midnight as specified in schedule. Any extension of this period will require the prior consent of the Insurers and any additional premium payable for such extension will become immediately due and payable by the Insured.
SUM INSURED: Cover for Yield Guarantee
Calculated as follows:
Planted Area (acre) x Yield Guarantee (bags/acre) x Pre-Agreed Value (Kshs/ 90kg bag)
PREMIUM: A total premium rate of 5.5% shall be applied to the Sum Insured and will form part of the input costs. Total premium will be paid upfront.
INDEMNITY: In the event of a valid claim in terms of the policy the payment will be on the following basis:
Claim Payable (Kshs) = Cover – Value Harvested