crop insurance questionnaire€¦ · crop facilities in order that underwriters can asses the...

CROP INSURANCE

QUESTIONNAIRE

by

Ghana Agricultural Insurance Programme

(GAIP)

Crop Insurance Questionnaire Page 1

CROP INSURANCE

QUESTIONNAIRE

ABOUT THIS QUESTIONNAIRE The accuracy and extent of the information provided is important in helping insurers to

appraise the risk and to provide cover at a reasonable cost. Without such information underwriters may be unable to provide the cover you require, or may need to add weighting to the premium to account for the remaining uncertainties.

Whilst taking account of standard insurance principles and policy forms in providing

cover, this questionnaire helps us to provide you with a tailor-made policy specifically adapted to meet your requirements.

Underwriters need to be satisfied that steps have been taken to ensure that any claim

covered under this policy can be accurately measured in the field. It is important that you and the underwriter are in agreement about the valuation of the

crop and the basis on which a claim may be made. A well-answered questionnaire will help achieve this aim.

ANSWERING THIS QUESTIONNAIRE

This questionnaire covers four topics of concern to underwriters. These topics are;

General Information Management & Husbandry Financial Information and Valuation Loss Records & Weather data

Please fill in the boxes in this questionnaire. If there is not enough space, then please provide your answer on a separate sheet, referring to the question number. Where required, we have provided explanatory notes to help you answer the questions. Remember that the accuracy of the information you provide is vital in helping brokers to negotiate the insurance cover you require and in keeping the cost of your insurance cover to a minimum.


GENERAL

1. Name of Assured:

2. Contact Name:

3. Position in company or organisation:

4. Postal address: Country:

Telephone: Fax:

5. Please provide the following crop information for each main growing location this season.

GROWING

LOCATION

(STATE WHERE)

CROP TYPE/

VARIETY

EXPECTED TOTAL

PRODUCTION

(tonnes)

AREA

(ha)

IRRIGATED

(yes/no)

EXPORT / DOMESTIC

1

2

3

4

5

6

7

8

9

10


6. Where are these crops located?

Site 1 Site 6

Site 2 Site 7

Site 3 Site 8

Site 4 Site 9

Site 5 Site 10

Note; It is essential that you provide maps (1:25000 or bigger ) to show the location of each and every crop site for which you require cover (we can provide a map if required)

7. What other crops do you grow commercially for which you do NOT require cover?.

CROP

AREA (ha)

CROP

AREA (ha)

PERILS REQUIRED

Underwriters prefer to provide cover for specific weather perils beyond the normal control of management. Damage from specified perils can normally be measured immediately after the specified loss event has occurred. In contrast, all risks insurance (multiperil) is more difficult to assess and usually requires monitoring of the damage until harvest before the extent of the loss can be measured and the claim met. Selecting perils; You should normally select perils to which your crops are primarily exposed and exclude additional perils which may make the task of designing your policy more complicated and increase the cost without significant benefit to you.

8. State which perils you require (tick the box )

Fire Flood & excess rainfall

Lightning Explosion

Windstorm Earthquake & earth tremor

Drought Pests & Diseases

Hail Other (specify)

(Other perils are those hazards to which your enterprise is exposed over which you have no management control).


9. State the date from which insurance is required.

10. Past & present insurance a) Please indicate if there has been, or there is in existence, crop insurance (tick the box )

Yes No

If yes;

b) For which perils did such insurance provide?

c) What deductibles or excess applied to the policies?

d) Has any insurer declined to renew your cover (give details)?

e) If you have had insurance in the past for the perils requested, please provide a copy of the

policy wording.

HUSBANDRY & MANAGEMENT

This section gathers information about the growth of the crop in your area, and way the crop is managed. It is important that complete details are given of all crop husbandry operations and crop facilities in order that underwriters can asses the extent to which potential risks are minimised.

1. For each of the locations requiring insurance cover, please give the average dates (day/month) for ;

Crop Stage Crop 1 Crop 2 Crop 3 Crop 4 Crop 4

Crop name

Planting

Germination

Flowering

Harvesting

2. Describe the equipment used for; a) Cultivation b) Spraying


c) Harvesting d) Irrigation

3. Describe any special husbandry techniques and the crop on which they are used. Of special interest are those techniques which reduce the crop exposure to an insured peril (wind, frost, excess rain etc.) and may include details such as root stocks & budding techniques, varietal choice, planting methods, plant supports etc.

4. Give total area under cultivation for each crop (ha) and estimated production (tonnes / ha) and comparable figures for at least the past six years.

YEAR

CROP PRODUCTION

(tonnes)

AREA GROWN

(ha)

IRRIGATED

(yes/no)

MARKET

EXPORT / DOMESTIC

2005

2006

2007

2008

2009

2010

2011

YEAR

CROP PRODUCTION

(tonnes)

AREA GROWN

(ha)

IRRIGATED

(yes/no)

MARKET

EXPORT / DOMESTIC

2005

2006

2007

2008

2009

2010

2011

5. Describe the measures which exist for hail prevention and control N.a.


6. Describe the measure which exist for flood prevention and control

7. Describe the special measures you have taken to ensure adequate drainage of your growing areas.

8. Describe the measures which exist for frost control (this may include the topography and location of areas to be insured.

N.a.

9. Describe the measures which exist for reduction and prevention of wind damage which may include planted wind breaks, nature of the surrounding environment and other features which may reduce the impact of wind on the crop.

10. Describe the harvesting methods including the harvesting facilities available in the event of a loss out of season.

11

a) Is the crop irrigated?.

Yes No

If the crop is irrigated, then;


b) Type of equipment used

c) Method of application

d) Water source and availability

e) Power source

f) Contingency arrangements for power failures or breakdowns

12 Provide a summary of the qualifications and years of experience of crop managers and foremen

13. How many people work on this/these crops as; a) foremen or section leaders No. = b) full time manual employees - excluding managers? No. = c) part time or casual workers ? No. =

14. If you make use of any crop specialist on a consultancy basis, please give details of their expertise.

15. Describe any special features of the management and organisation which you feel may be relevant to insurers.


FINANCIAL INFORMATION & CROP VALUATION

This section provides information which is used: a) to develop the basis of valuation of your crop to be insured and b) to ensure that in the event of a claim the amount of loss can be measured and the claim

adjusted fairly.

1. Please provide for all the locations the total yield obtained, total crop sales value and where relevant the proportion of total yield in any specific quality grade for your crop since 2001. Please enter this information in the schedule below;

Year

Area

Total yield

Value of

% within quality grades

(ha) (kg) Crop (US$) premium Standard

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

It is normal practice for the insurer to indemnify the grower for the costs of establishment and maintenance of the crop up to the point of any loss event rather than the expected yield or profits. These questions aim to identify these establishment and maintenance costs.

2. What are the typical costs associated with the establishment and maintenance of the crops to be insured ? Please provide the total costs for the following items:-

Annual variable costs

Premium grade

Amount/ha

Standard grade

Amount/ha

i) Fertiliser

ii) Weed control

iii) Pest control

iv) Seedlings

Other variable costs


(state in GHC)

TOTAL VARIABLE COSTS

Allocation of Fixed Costs - specify major costs:

Annual fixed costs

Premium grade

Amount/ha

Standard grade

Amount/ha

i) Regular labour

ii) Machinery depreciation

iii) Rent

iv) Interest of credit

v) Fuel and power

TOTAL COSTS

Total costs - state as % of your total fixed and overhead costs

vi) Gross profit

viii) Net profit as % of Gross profit

3. What is your expected sales value of the crop; a) Production / hectare

b) Value per tonne

c) Sale value per hectare

4. State what percentage of your produce is normally sold: a) on the open market % = b) under contract to a processor % = - please state the buyer, grades, age and amounts contracted, and the price: c) for export - % = state age, quality and quantity requirements and price: d) other - please specify? % =

5. What is your preferred crop value to be insured per hectare? (e.g. do you have specific finance charges you wish to cover?)

6. In the year of a loss, what is the expected increase in value of your remaining crop(s) over their normal sale value?

7. Please comment on the varieties of each crop that you grow:


LOSS RECORDS & WEATHER DATA

The purpose of this section is to obtain information about losses which you have experienced on your property and losses which have occurred in your farming district. The questions below ask you about the loss events caused by the perils and related perils for which you are requiring cover. Leave blank those questions not related to your requested perils.

1. Fire and lightning a) Please give details of fires in the last 10 years on your land.

Year Actual production loss (ha)

Loss as % of total expected crop

2. Hail a) Please give details of ALL hail losses by event in the last 10 years on your land.

Year Date of Event

Actual production loss (ha)



3. Windstorm Insurers may wish to restrict wind damage cover to major wind events depending on

susceptibility of your crops to minor winds. For example, in areas exposed to cyclones, cover may be restricted to named hurricanes and / or tropical storms. Alternatively, the insurers may impose an excess within the policy to exclude frequently occurring minor wind damage.

2 a) Please give details of any windstorms in the last 10 years on your land:

Year Value per hectare (US$)

Actual production loss (ha)


2b) Please give details of major windstorm damage which has occurred over the last twenty years in your farming district.

Year Loss as % of total expected crop

4. Flood & excessive rain The damage caused by flood can include direct and indirect effects. These include in the

case of crops; a) Damage from overflow of fast moving watercourses b) Damage from backing up of standing water c) Damage from water-logging of soils and the death of plants d) Inability to cultivate or harvest with mechanical equipment e) Effects of disease caused by humidity f) loss of blossom or fruit due to excessive rainfall The definition of damage covered will be specified by insurers.


5. Flood Please specify which of the effects from flood listed below is of major concern to you; (TICK those of major concern ) a) overflow of fast moving watercourses : b) backing up of standing water : c) water-logging of soils and the death of plants : d) Inability to cultivate or harvest with mechanical equipment : e) Effects of disease caused by humidity : f) loss of blossom or fruit due to excessive rainfall : g) Is your area within a river valley and exposed to flood or on a flood plain?

Yes No (Tick one)

If you are exposed to flood, please mark on a map those parts of your farm so effected. h) Please give details of any flood damage in the last 10 years on your farm. Also state the

cause of the damage (a to e above).

Year Actual production loss (ha)

Cause of damage ('a' to e' above)

Please give details of major flood damage which has occurred over the last twenty years in your farming district. Also state the cause of the damage reported (a to e above)

Year Loss as % of total expected crop

Cause of damage ('a' to c' above)


6. Meteorological data. Please supply daily, weekly or monthly average temperature and precipitation data (daily preferred) which may be viewed as typical of the climate in the location of your crop. Please give the source of the data used.

Mean Monthly Precipitation (mm).

Mth/Yr Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mean Monthly Temperature (degrees Celsius)

Mth/Yr Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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