PLANTERS / METAYERS
The Fund undertakes an annual exercise of registration of cane plantations starting by mid April of any year to end on 31st May of that year. During the period mid February to end of March, only planters and metayers who have received an invitation should call at any office of the SIFB to register their holdings. As from the beginning of the month of April up to end of the month of May of any year, irrespective of an invitation received, Planters / Metayers may register their holdings at any office of the SIFB during working hours on any week day.
This exercise formalizes the insurance policy for the ensuing crop provided for in Section 40 of the Act. Registration after 31st May is effected on payment of late registration fee. The main objective of this exercise is to confirm the data (holdings) of an insured. The registered data is thereafter used by the insured to enter into a contract for the supply of his canes for milling.
On and above, this exercise permits an interaction between the Fund and its insureds. The Insureds have the opportunity to enquire about their holdings, cane weight, Insurable Sugar, compensation, etc.
NON INSURABLE RISKS
Staff of the Fund (inspectorate division) undertakes periodical inspections (a minimum of three annually) to take note of the state of cane cultivation. Competitive weeds, gaps between stools, bad fertilisation, diseases, pest (except yellow spot) etc are classified as adverse items. Planters are advised of the condition of their cane plantations in case of existence of any adverse item. In case of disagreement the planter can request for a reinspection of his fields. The adverse item thus recorded reduces compensation payable in case of event years.
The ranking system was introduced in 1965 under the Cyclone and Drought Fund Ordinance. Every insured has a ranking which is his classification as an insured. Each ranking value corresponds to a premium percentage, a first loss percentage and value shortfall percentage as tabulated in the Ranking Table.
Ranking correlates negatively with the premium percentage and the first loss percentage, and positively with the value shortfall percentage. In other words, an insured having a higher ranking will receive more compensation, in case of an event, and pay less premium compared to another insured with a lower ranking having the same Total Insurable Sugar and shortfall.
The ranking formula was last amended by regulation Government Notice No. 94 of 2007.
TOTAL INSURABLE SUGAR (TIS)
The product of the insured’s ISH and the extent in hectares on which canes have been cut down and sent to mill gives his Insurable Sugar, commonly termed Total Insurable Sugar (TIS), which may be adjusted for uninsured risks.
ISH = Sum of sugar produced at 78% for insured’s 3 best years
Sum of harvested hectares for insured’s 3 best years
The insured’s “best” years are also known as his “normal” years.