What is Crop Insurance?
- It covers all commercial field crops including wheat, maize, barley, rice, tea crop, coffee, sugar cane, tobacco, all horticultural crops, and floriculture and tree crops.
- Also covers farm assets and equipment including greenhouses and irrigation facilities.
- The insured farm will have greater access to agriculture credit since the policy document will be accepted by financing institutions as an alternative form of security.
- Multi-Peril Policy - Which covers the crop against various perils except those specifically excluded.
- Index-Based (Kilimo Salama) - is a microinsurance product that covers crops against identified weather perils that can be measured using a computerized weather station.
This cover protects your farm crops against various perils such as losses due to adverse weather conditions such as floods, hailstorms, drought, barn fire, uncontrollable pests, theft etc. The sum insured can be the farmer's input costs, output (expected yield) or both.
The two policies available under crop insurance are:
- Deterioration of crop and product quality due to interruption of work or any process accidents.
- Consequential loss due to delay in harvesting, detention or confiscation of produce or equipment
- Error in pesticide application and failure to adhere to recommendation on application procedures.
- Theft, mysterious disappearances and unaccountable losses.
- Completed application form and payment of premium
- Crop emergence/establishment report conducted by the insurer
All crop losses as a result of non-insured perils:
The premium rate depends on crop type and the number of insured perils. This rate ranges between 4.5 and 15% on the sum insured.
Yield shortfall and downgrading. Payment of all claims is due at the end of a crop season, however, in case of a total loss necessitating replanting, payments are made to facilitate replanting.