UNDERSTAND CROP INSURANCE

And what is crop insurance?

Crop insurance is a contract under which one of the parties (insurance company) pays an indemnity to the other party (insured) in case of the occurrence of a specific event covered by the contract.

  • Cost of the Insurance: the contract is effective after the payment of the cost of the insurance, which is named “insurance premium”.
  • Adverse climatic event: if a climatic event that is covered in the insurance contract occurs, we name it “claim”.  This claim must be assessed in the presence of the insured and/or another nominated party.
  • Indemnity: after the assessment of the claim in the field is confirmedby the loss adjusters, and the insured and/or nominated representative, the indemnity will be calculated and paid.

As a reliable, predictable risk management tool, the crop insurance policy protects the rural producer from losses resulting from adverse climatic events, and also promotes the protection of the investments.

For which types of cultures is it possible to contract crop insurance?

AgroBrasil offers insurance for several types of crops, for grains, fruits and vegetables. It is possible to contract insurance per crop and per purpose;  for example, there is insurance for table grapes, or for grapes for wine production.

Click here to learn more about the crops that can be insured, and which are the best coverages.

How to contract crop insurance?

Crop insurance can be contracted through specialized insurance brokers partnerships. For additional information, and in case of any doubts, please contact us through phone 0800 979 2476.

Can the contract terms be amended after the policy is issued?

The insureds can, at any time, request an amendment, however, the insurance company has to check if it is feasible.  For example, if a claim had been previously reported, the insured area will have to be inspected.

What is covered by crop insurance?

Crop insurance covers from yield losses up to the devaluation of the product (loss of quality), caused by insured climatic events.  The insurance company also offers other types of coverages, like re-sowing of grains, grapevine collapse, protected cultures and phytosanitary protection for fruits.  To verify the possible combinations of coverages and products, please click here.

Is it possible to contract crop insurance in any phase of the culture?

It is recommended to buy the insurance before the crop is exposed, however, it is possible to request a quote for crop insurance in any stage of the crop, but the confirmation of the insurance will depend on the result of a previous inspection.  Therefore, the best time to contract crop insurance is before the crop season, which means, to guarantee that the investment will be safe all the time, at all times.

Can the age of the applicant influence the cost of the crop insurance?

Differently from car or life insurance, the age of the applicant does not influence the price of  crop insurance.  The only requirement is that the applicant must be older than 18.

Is it possible to insure rented areas?

Yes, no restriction.

What are the procedures in case of claims?

The insured must communicate the claim immediately to the broker, informing the date and the climatic event, as long as they are covered by the insurance. The broker will then proceed with the insurance protocols.

In case of indemnity, how long does it take for the insurance company to pay it?

The insurance company will have a maximum of 30 days to pay the indemnity, counted as from the receipt of the basic documentation described in the insurance General Terms.

Is it possible to buy crop insurance for more than one crop in the same property?

Yes, no restrictions.

Is there a deferred period for crop insurance?

Yes.  But the deferred period varies depending on the culture and risk covered.  It normally ranges from 2 to 15 days, also depending on the size of the plants or of the fruits.

Are franchises applied in case of claims?

It will depend on the insured coverage, which can be a franchise deductible or an ordinary deductible.   A franchise deductible differs from an ordinary deductible in that, once it is met, the entire amount of the loss is paid, while in the ordinary deductible it will be deducted from the loss before paying up to the policy limits.

Is it possible to buy more than one type of insurance for the same area?

For the same culture, it is not allowed to contract more than one insurance policy for the same area.

Is it possible to pay the insurance premium in installments?

It will depend on the type of the crop and when it is contracted.  The payment is always made through bank slips.  In case the payment is divided in installments, the first payment (down payment) should be made 10 days after the date of the contract, and the remaining installments in the subsequent months.

Is there any type of premium subsidy available for crop insurance?

Yes, there is a federal subsidy, and also some states and municipalities offer premium  subsidies.

– Through the “PSR” – Program for Subsidy of the Rural Insurance Premium, the rural producer might obtain help from the Federal Government to pay for the premium of crop insurance.  The Federal Government subsidizes part of the premium paid by the insured, which can vary between 35% an 45% of the premium, depending on the modality of the insurance and the culture.

– There are a few states and municipalities that help the rural producer with part of the premium amount paid by the insured.

An applicant with credit restrictions can contract crop insurance?

Yes, it is possible to contract, but it will be necessary to pay the premium in full, because, in case there are any outstanding debts at CADIN (Informative Register of Unpaid Debts of the Federal Public Sector), the rural producer will lose the right to participate in the PSR (Program for Subsidy for Rural Insurance Premium).

How to access the subsidy programs?

For more detailed information, please access the specific sites of the programs:

*Federal Government:

http://www.agricultura.gov.br/assuntos/riscos-seguro/seguro-rural/limites-percentuais-de-subvencao

*São Paulo State Government

http://www.agricultura.sp.gov.br/quem-somos/feap-credito-e-seguro-rural/feap-seguro-rural/

*Paraná State Government

https://www.legisweb.com.br/legislacao/?id=257074

*Jundiaí – SP

https://leismunicipais.com.br/SP/JUNDIAI/LEI-8739-2016-JUNDIAI-SP.pdf

* Itupeva – SP

https://leismunicipais.com.br/a/sp/i/itupeva/lei-ordinaria/2017/211/2111/lei-ordinaria-n-2111-2017-autoriza-o-poder-executivo-a-conceder-subvencao-do-seguro-rural-a-ser-rateado-entre-os-produtores-rurais-de-uva-estabelecidos-no-municipio-de-itupeva-estado-de-sao-paulo

* Itatiba – SP

https://leismunicipais.com.br/SP/ITATIBA/LEI-4489-2012-ITATIBA-SP.pdf

* Louveira – SP

http://www.louveira.sp.gov.br/transparencia/administracao/leis/Lei%202354%20-%20Produtores%20rurais.pdf