WHAT IS COVERED
Drought and excessive rainfall.
HOW IT WORKS
In the past, drought insurance has been based on precipitation. Indemnification of farmers would then take place if precipitation during the growing season would not meet certain pre-defined levels. However, there are few rainfall stations. A very dense and costly network would be required to adequately represent the spatial variability. Moreover, adding rain gauges would not provide for a long precipitation history that is required to assess the drought.
Another limitation is that rainfall is not a good measure of actual crop water use. A considerable part may run-off or may percolate into the subsoil. It is also possible that rainwater is stored in the soil for considerable time and used by the crop with months of delay.
The timing, not just the amount of rainfall during the various growth phases of a plant, is very important for satisfying the soil water balance and therefore the ultimate yield. Dry spells, or deficits over the main phases of crop growth, can cause yield loss, even if cumulative season rainfall is adequate.
Drought index insurance monitors crop water availability to determine drought and has a linear correlation with crop yield. It is therefore a much more suitable indicator of agricultural drought than rainfall.
The product’s Drought index insurance is based on innovative satellite technology and provides an affordable alternative to expensive traditional loss based crop insurance.
Using 33 years of Meteosat data and near real-time data reception we use drought insurance indices to determine drought payouts per season and continuously monitor drought across Uganda. When there is a drop in the expected average yield of the district due to drought or excessive rainfall, a linear payout is triggered to the extent of the loss experienced due to the drought as monitored by the drought index.
Harvested Crops and Crops in transit; Any Crop which has been harvested prior to inspection by our loss assessor; A result of consequential loss whether or not caused by a defined peril. Where recognized good farming and harvesting practices have not been followed; Controllable diseases, weeds and/or controllable insect infestations
5.5% with yield guarantee of 90%
Rates applicable except in Kasese, Arua, Isingiro, Ngora were Premium rates of 10% would be applicable
Crops covered under the National Agriculture Insurance Scheme