In case of an event year, and on obtention of returns (canes supplied on behalf of planters) by millers, brokers, middlemen and co-operative credit societies together with extraction rates issued by the Cane Planters and Millers Arbitration and Control Board the sugar accrued to each insured is determined. The sugar accrued is then compared to the total insurable sugar (TIS) to assess any compensable loss payable around the end of February.
DETERMINATION OF COMPENSATION
Based on compensable loss varying from 55% to 80% (depending on the ranking of the insured) and the value of sugar of the insured, compensation is payable after the deduction of the first loss and sugar accruing.
WHEN PREMIUM IS CLAIMABLE?
Premium is claimable at the end of the harvest, i.e, on or before the 31st of December of any year after the period of Insurance Cover.
DETERMINATION OF PREMIUM
Based on the ranking of the insured, premium payable is equivalent to a percentage (varying between 2.75% and 4.4%) of the value of the total insurable sugar of that insured.
The determination of sugar price for insurance purposes by December of any year enables the Fund to pay any compensable loss to insured during the following year as early as possible (usually by the end February/early March). Thus the final sugar price which is determined by the end of May of the following year may slightly differ with the sugar price for insurance.