Harvest protection comes in the form of multi-risk insurance policies and hail insurance policies.
Harvest insurance agents act and advise in the interest of the farmer during the entire planting, growing and harvest season, to help intercept any losses that might occur. Platinum Agri Brokers have all the expertise to provide full specialist cover against hail and multi-risk factors. Harvest insurance can never cover profit, but it can limit loss to such an extent that the farmer will be able to plant the next season without having to resort to debt.
Hail insurance can be taken out at any point during the season and cover will be activated 7 days after signing the necessary documentation.
Applications have to be submitted for multi-peril insurance, which is only available for clients that already had multi-peril insurance in the previous season. Insurers and reinsurers are currently creating new products to replace multi-peril insurance when it is no longer possible for them to provide it, due to the high Claim/Premium ratio.
It is very important to insure while planning the upcoming season, instead of insuring during your very busy planting season. Your planned hectares could still be corrected after you’ve planted your last crops. If you insure every hectare upfront, you eliminate the problem of waiting seven days for your cover to be activated. Special payment options are available if you insure early in the season. You receive much more value for your money if you insure before you plant any of your crops.
Hail insurance cover includes:
- The physical damage of hail to the plant at the time of hail
- Fire damage
- Transit cover
- Chemical spray damage (planes not covered)
- Costs for picking up maize after wind damage when they are physiologically mature.
Frost is covered until 31 March for some types of crop.
* Make sure a sliding scale is included in your policy for your type of crop, this effects the amount of damage that is calculated. The sliding scale progressively increases your damage so that 85% damage = 100% damage.
Multi-Peril insurance covers all those risks that you cannot control, like drought, excess rain, transit, hail, frost, SASRIA, wind, cold, uncontrollable pests and diseases. It is very important that theft is not covered.
Herewith a short practical explanation of what the terms ‘franchise’ and ‘excess’ entail:
|5% Franchise||5% hail damage = no claim,
as soon as hail damage is more than 5%, everything is paid out:
6% damage = 6% hail claim
|10% Franchise||10% hail damage = no claim,
if hail damage is more than 10%, everything is paid out:
11% damage = 11% hail claim
|5% Excess||5% hail damage = no claim,
first 5% damage for own expense:
6% damage = 1% hail claim
|10% Excess||10% hail damage = no claim,
first 10% damage for own expense:
11% damage = 1% hail claim