Crop Insurance

Crop Insurance

Category:Non Motor

Description:

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.

 

  1. Hail and Frost Damage

 

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.

 

  1. Fire

 

  1. Windstorm

 

An event where mechanical damage is evident to such an extent that the plant is permanently damaged or the harvest severely lodged.

 

  1. Excessive Rainfall

 

Any event where above normal rainfall occurs to such an extent that irreversible damage is caused to crop irrespective of its growth stage.

  1. Uncontrollable Pests and Diseases. This will include uncontrollable birds and wild animals. However there should be sufficient proof that the insured tried by all means to keep the wildlife and birds at bay, for example, through perimeter fencing, regular patrols, bird scaring and traps.

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.

 

HARVESTING

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.

 

BASIS OF

INDEMNITY:                            In the event of a valid claim in terms of the policy the payment will be on the following basis:

                                               

YIELD SHORTFALL

  1. The Assessor will verify the Actual Yield Harvested on all lands planted with the insured crop. Any planted areas already harvested prior to the Assessor’s consent will be considered to have achieved the Long Term Average Yield.

 

  1. If in the opinion of the Assessor, the Potential Yield is less than the Insured Yield, then the Potential Yield will be used in place of the Insured Yield.

 

  1. The claim payable will be calculated as follows:

 

  1. Cover (Kshs) = Yield Guarantee (bags/ha) x Pre-agreed Value (Kshs/90kg bag) x Insured Area (acres)

 

  1. Value Harvested (Kshs) = Actual Harvested Yield (bags/acre) x Insured Area (acres) x Pre-agreed Value (Kshs/bag)

Claim Payable (Kshs) = Cover – Value Harvested