Agriculture insurance underwriting and claims

Underwriting

Before the cover can be provided, the operations of the firm and farmer experience have to be analyzed. A proposal form is required. The proposal will give the personal details of the farmer, the period of cover, type of crop, average yield to be insured and the expected selling price. It will also provide a sketch map of the area under cultivation to be insured.

The farmer will also be required to state;

• Whether they have suffered any loss or damage to their crop or damage to their crop for the last, say five years.
• If they have their proposal for insurance declined before
• If any special conditions have been imposed on the proposal in the past.

In case of crops such as wheat, barley, tobacco, the average yield per acre or hectare for the last say 5 years is required. The insurer will also need to know the costs per hectare to produce the crop in question. The farmer will be covered up to 80 percent of the losses. It also possible to issue the policy based on price of output at the expected long term average yields.

In the final analysis, however, the amount of premium will depend on number of factors like, size of land of the farmer, their financial standing, number of crop being insured and the sum insured.

Claims

A farmer will forward the claim to the insurance company or their nearest representative. The claim representative will analyses   the extent of damage caused to the crop. based to the report of the surveyor, the claim is paid to the farmers.