In respect of any factory area, a crop year may be declared by the Board not later than 31st January of any crop year to be an “Event Year” on account of the occurrence of all or any of the following causes: cyclones, drought or excessive rainfall having caused losses in sugar production.
In case of non declaration of an “Event Year” in respect of any factory area, Insureds may not later than 30th April request the Board in writing to make the declaration.
The potential amount of sugar one hectare of your plantation can produce; basically it is the weighted average sugar yield per hectare of your 3 best years (for which reliable data exists) out of the 8 preceding years;
ISH = Sum of sugar produced up to 78% for your 3 best years
Sum of harvested hectares for your 3 best years
Includes cyclones, drought and excessive rainfall with or without the yellow spot disease; any shortfall due to an insured risk is compensate, provided a declaration for an Event Year has been made.
An Uninsured Risk is any cause other than cyclone, drought or excessive rainfall resulting in a loss in sugar yield; such cause is usually due to bad husbandry (weeds in the cane plantation, improper fertilisation, gaps, etc.)
The product of your Insurable Sugar per Hectare and the extent in hectares on which canes have been cut down and sent to mill; it may be adjusted for Uninsured Risks, in which case it is termed “Adjusted Total Insurable Sugar”.
Your Total Insurable Sugar adjusted for Uninsured Risks or for unreliable
The Sugar Accrued to a planter is the product of his caneweight sent to mill multiplied by the extraction rate at planter’s share.
First Loss is analogous to “Excess” in car insurance. First Loss is the amount retained from the insured’s Total Insurable Sugar and borne by the insured himself before the computation of his Sugar Shortfall in an Event Year.
Your Total Insurable Sugar in an Event Year less your First Loss less your Sugar Accrued in that year; the General Compensation payable to you is based on your Sugar Shortfall.
Your classification as an insured; the higher your ranking, the lower your premium and first loss percentages, and the higher your shortfall percentage. (i.e. a planter having a higher ranking will receive more compensation, in case of any event, and pay less premium compared to another planter with a lower ranking having the same TIS and shortfall)
The ranking formula was last amended by regulation Government Notice No. 94 of 2007.
