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.