FIN AGRICULTURAL

INSURANCE PRODUCTS

Ayuba John
Agric Insurance Desk
07064402274
INTRODUCTION
AGRICULTURE

Agricultural producers have series of risk affecting

their harvest or productions, this are mainly natural
disasters such as weather condition, pests,
diseases and accident

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INTRODUCTION

AGRICULTURAL INSURANCE
Is the application of the basic insurance principle and
practice to agriculture i.e. insurable interest, utmost
good faith, indemnity, contribution and proximate cause

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 AGRICULTURAL VALUE CHAIN.

This could be defined as the link which Agricultural

Products/Produce takes from production (farmers) to
consumption (consumers)

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 CLASSIFICATION OF AGRIC INS

INDEMNITY (CONVENTIONAL) BASED

Payout is based on the degree of loss assessed by an

adjuster

-Multi-peril Crop Ins.

-Named Peril Ins.
-Livestock Ins.
-Poultry Ins.
-Fishery Ins.
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CLASSIFICATION OF AGRIC INS

• PARAMETRIC (INDEX) BASED INSURANCE

Payout is based on a measured index that is assumed to
proxy the actual loss

-Area Yield Index Insurance

-Weather Index Insurance

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CLASSIFICATION OF AGRIC INS

HYBRID INSURANCE

A combination of indemnity and index

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APPROVED AGRIC INS. PRODUCTS

1. Multi-Perils Crop Insurance

2. Fishery Insurance
3. Poultry Insurance
4. Livestock Insurance
5. Area Yield Index Insurance

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 CROP INSURANCE.

Crop insurance can be classified into two major headings viz:

1. Basic food crops: This are crops that are cultivated mainly
for consumption. Examples: Beans, Yam, Cassava, Maize,
Vegetables etc.
2. Commercial crops: this are plantation or industrial crops
majorly use for export/business such as cocoa, rubber,
cashew etc. usually solely planted. H

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 CROP INSURANCE

BASIC CROPS: Maize. Rice, Cassava, Yam, Vegetable, Wheat,

Sorghum, Millet, Groundnut etc.

PERILS COVERED

Fire Flood
Lightning Drought
Windstorm Pests & Diseases

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 CROP INSURANCE

COMMERCIAL CROP: Cocoa, Citrus, Oil palm,

Rubber, Cashew, Sugarcane, Cotton, etc

PERILS COVERED:
Fire
Drought
Flood
Lightning
windstorm
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 DIFFERENCE BETWEEN COMMERCIAL & BASIC CROP
RISK

• Commercial crops are basically covered under the usual

fire & special perils cover while basic food crops include
paste and diseases. However, Commercial crop or
plantation insurance can be extended to cover paste and
diseases with additional premium

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 CROP PROPOSAL FORM

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CROP PROPOSAL FORM

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 CROP PRE-INSURANCE INSPECTION
• Introduction • Management/Agronomic/Cultural practices
• Date of Planting
• Name & Address of Insured • Conformity with Calendar of Operations for the
• Contact Person (Name, Tel Nos., email) zone
• Farm Location • Method of Planting
• Spacing/Plant Population
• Date of Inspection • Fertilizer Application:
• Inspection Team/Contact • Type
• Sum Insured/Premium • Quantity
• Date of Application
• Limit of Liability • Source of water for irrigation
• Adequacy of Sum Insured • Weeding
• • Hand Weeding
Period of Cover
• Herbicide
• Agency • Effectiveness
•  
• Situation & Description of the Farm • Personnel/Staffing
• Accessibility •  
• Topography • Previous Loss History
• Boundaries – river, roads • Date of loss
• Soil/weather condition • Nature of Loss Suffered
• Extent of Value of Loss
• Farming practices
•  
• Farm Size • Moral Harzard
• Total area of Farm •  
• Number of hectares cultivated • Observation Opinion & Recommendations
• Number of hectares planted for each • Condition of the Farm
crop • Observed Lapses
• Risk Preventive Recommendations
• Crops Planted
• Insurability or Otherwise of the Farm
• Hectares planted for each Crop
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• Source of Planting materials
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 AREA YIEL INDEX INSURANCE

Area yield index insurance is an insurance where

the indemnity or payout is based on the realized
(harvested) average yield of an area such as a
ward, district or Local Government Area.

An indemnity is paid if the realized yield for the

area is less than the insured yield, regardless of the
actual yield on a policy holders’ farm

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 KEY FEATURES OF AYII

The indemnity is based on the realized (harvested) average yield of

an area such as a ward or LGA.
Yield loss is established as a percentage of the average yield for the
area.
An indemnity is paid if the actual average yield for the area is less
than the insured yield, regardless of the actual yield on a policy
holder’s farm.
This type of index insurance requires historical area yield data on
which the normal average yield and insured yield can be established

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 POST-HARVEST RISK
FARM PROPERTY AND PRODUCE INSURANCE

Storage Risk & Transit Risk: Combined Fire,

Burglary and Goods in transit for farm produce in transit
and while in warehouse or stores

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FISHERY INSURANCE

FISH IN PONDS/TANKS:

PERILS COVERED:
Loss of fish by death resulting from Accident or Diseases or
collapsed of fishpond resulting from fire, flood, windstorm or
lightning


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FISHERY INSURANCE PROPOSAL FORM

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FISHERY INSURANCE PROPOSAL FORM

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 POULTRY INSURANCE

Poultry birds (Broilers, Breeders, Layers,

Cockerels), Turkey, duck etc.

PERILS COVERED: Loss of birds by death

resulting from accident or diseases

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 POULTRY INSURANCE PROPOSAL FORM

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 POULTRY INSURANCE PROPOSAL FORM

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 DOMESTIC ANIMALS

Cattle, Goat, Sheep, Pig, Rabbit, Grasscutter,

Snail etc.

PERILS COVERED: Death (Mortality) or injury

due to accident, diseases/illness, fire, storm and
flood
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 LIVESTOCKS PRE-INSURANCE SURVEY
1. Hatchery (Poultry)
1. Introduction
2. Date of Stocking
2. Name & Address of Insured 3. Source of Feed
3. Farm Location 4. Management/Husbandry Practices
4. Date of Inspection 5. Feeding Regime
5. Inspection Team/Contact 6. Sanitary Conditions
6. Sum Insured/Premium 7. Disposal of Waste/Dead Animals
8. Identification of Animals
7. Limit of Liability per bird/animal
9. Health State/Status of the Animals
8. Adequacy of Sum Insured
10. Medication and Disease Control
9. Agency 11. Record Keeping
10. Situation & Description of the Farm
 Accessibility 12. Personnel
 Drainage 13. Number of Attendants
 Description & The Orientation of Livestock Buildings 14. Number of Management Staff
 Distance from Human Dwellings 15. Veterinary Personnel (Arrangements)
 Source of Water & Light 16. Previous Loss History
 System of Rearing 17. Date of loss
1. Type/Class of Livestock 18. Nature of Loss suffered and Cause
2. Stock Population 19. Frequency/Occurrence
 Total No. of Animals on the Farm 20. Estimate value of the Loss
 Total No. of Pens/Size 21. Effort to prevent or reduce the loss
 Number of Animals Proposed for Insurance 22.  
1. Information on Animals 23. Observation and Recommendations
 Breed 24. Condition of the Project
 Ages of Animals/Sex 25. Observed Lapses
 Source of Animals 26. Improvement/Preventive
recommendations
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 SUM INSUERD

CROP: State 2
Weed control
Estimated cost of inputs:
Pest control
State 1 Transportation
Land clearing and Interest on loan
stumping State 3
Seeding/planning Harvesting
Fertilizer application (maturity)
Miscellaneous
27Irrigation
 SUM INSUERD

POULTRY/FISHERY
Estimated production cost:
 Cost of chick/Fingerlings/Juvenile
 Feeds
 Vaccinations
 Medications
 Labor (poultry Attendant)
 Utilities and Miscellaneous items

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 SUM INSUERD

LIVESTOCKs: Estimated production cost

• Value of animal
• Feeds
• Vaccinations
• Medication
• Labor
• Utilities
• Interest on loan (if any)

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PERIOD OF COVER

• Domestic animals: 1 year renewable annually

• Poultry(Layers): 1 year cover could be extended on payment of
additional premium

• Poultry(broilers): 10 week and not renewable

• Poultry(parent stock):1 year and renewable annually
• Poultry(cockerel):16 weeks could be extended
• Fishery: 6 months-1year
• Other commercial livestock: 1 year and renewable annually

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PERIOD OF COVER (CROP)

1. For basic food crops, cover is from germination to

physiological maturity.

2 Cover for commercial crops is usually for one year

and renewable thereafter

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COVER ACROSS THE AGRIC VALUE CHAIN

 GPA: Farm workers/supervisors and managers

 Fire & Special perils: Farm buildings and
contents
 Plant All Risk: For machineries and processing
plant
 Plant All Risk: For tractors and other movable
farm equipment
 Motor and other movable items
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THANK YOU