Subject of insurance

Insurance coverage may include: crops (including stubble crops, minor crops and intercrops), fruit, meadow herbs, medicinal herbs, decorative plants, orchards and vineyards, young orchards and vineyards before yielding, fruit, grape and forest seedlings, young forest cultures up to six years of age, wickerwork willow and reed.

The insurance covers the loss of yield due to a damage to or destruction of a culture by an insured risk occurrence. The insurance covers that very part of a plant for which the plant is cultivated.

Only if specially contracted and specified on the insurance policy, the coverage shall include stubble crops, minor crops and intercrops.
The insurance may also cover crops and fruit cultivated in a covered area (glass houses and plastic greenhouses).
The insurance may not cover crops and fruit already damaged by the occurrence of the risk against which the client wishes to be insured as well as infertile orchards and vineyards.

The coverage includes:

  • the very seed of grains, oil bearing plants and other seed bearing cultures – if specially contracted, the insurance may also cover the stalk (straw, maize stalks) of grains and panicle of sugar sorghum;
  • root and tuber of root and tuber crops;
  • parts of vegetables, medicinal herbs and decorative plants, serving their cultivation purpose;
  • hemp stem, and where the seeds are produced, the insurance covers only the seeds; if specially contracted, the insurance can cover the stem of a seed hemp;
  • flax stem and seeds;
  • hop fruit;
  • cotton fruit (boll);
  • poppy seed and opium;
  • tobacco leaf; if specially contracted, the coverage may include the seed too (when produced);
  • forage mass of forage plants and meadow herbs; when produced for seed, the coverage includes only the seed;
  • nursery plants;
  • yield/fruit of orchards and vineyards; if specially contracted, the coverage may include the stem and/or stock;
  • stem and/or stock of young orchards and vineyards;
  • trees of young forest cultures;
  • stocks, grafts, cuttings and seedlings of fruit, grape and forest seeding material and grafting branches in orchards and canes in vineyards (stock nurseries only);
  • wickerwork willow brushwood;
  • reed stems.

Standard and additional perils

This insurance applies to the loss of crops and fruit yield due to the following perils:

Standard risks – hail, fire and lightning.

Additional risks – flood, storm, autumn frost, winter freezing, spring frost.

Additional risks are contracted only as a rider to the standard risks.

In addition the loss of yield (quantity), the loss of quality can be specially contracted with:

  •       crops and fruit for seed production,
  •      fruit and table grapes.

Insured value

Crops and fruit are insured to the value determined by the client, on the basis of actual value of the expected yield of a given culture. The actual value of the expected yield is determined by the expected yield (kg/ha) and the wholesale market price formed in the harvesting/cropping season. Agreed values of yield and prices can be adjusted in line with their actual value fluctuations in the insurance period/vegetation season.

Insured's rights and obligations

By stipulating crops and fruit insurance, the Insured becomes entitled to indemnification against losses caused by damage to or destruction of crops and fruit due to the insured risks occurrence. To realize his right to indemnification to the agreed amount and scope, the Insured has to fulfil the following obligations:

  • take out the insurance coverage for all the areas planted with the crops and fruit of the same kind, that he owns,
  • pay the insurance premium within the agreed deadlines during the insurance period
  • in case of occurrence of the risk insured against, promptly notify the Insurer thereof and submit all details and pieces of evidence at his disposal for determining the cause and amount of loss; conduct the additional agrotechnical measures on damaged crops and fruit (in addition to the regular measures) to mitigate the adverse effects.

Insurance premium payment

The insurance premium can be paid in full when signing the insurance contract (for which a discount is granted) or by instalments (the payment schedule is harmonized with the schedule of revenues from agriculture). The client can be granted a discount on the insurance premium depending on the contract period, type of insurance (group option), etc.

Premium calculation example

The premium amount depends on the biological susceptibility of a culture to the insured risk and the size of hail risk in the area where crops and fruit are cultivated.

The insurance covers 1 ha of wheat against standard risks (hail, fire and lightning).

The expected yield of 4,000 kg/ha, at the price of 25 RSD/kg, gives the value (sum insured) of 100,000 RSD/ha. For this value, the client needs to pay the insurance premium of 2,000 RSD/ha.