Area Yield Insurance
Our Area Yield Index Insurance is a comprehensive agricultural insurance product designed to protect farmers from financial losses due to adverse events that impact crop yields. This insurance helps farmers secure their income and encourages investment in their farms.
Key Features:
Protection Against Multiple Risks: Covers losses caused by a range of natural events that might affect your harvest. Specifically, as detailed in our materials, this includes:
- Floods
- Drought
- Windstorms
- Frost
- Excessive Rainfall
- Heatwaves
- Pests & Plant Diseases
- Hail
Area-Based Payouts: Payouts are triggered when your area qualifies for a payout, ensuring that farmers in the affected region receive compensation.
What is Area Yield Index Insurance?
Area Yield Index Insurance is a type of insurance that doesn’t indemnify individual farm losses. Instead, it uses the average yield of a defined area (e.g., a district or region) to determine payouts. Here’s a more detailed explanation for your site visitors:
- How it Works: A historical yield average is calculated for a specific area. This becomes the "index." If the actual average yield for that area in a given season falls below a certain trigger level (the index), all insured farmers in that area receive a payout, regardless of their individual farm's output.
- Benefits of Area Yield Index Insurance:
- Reduced Administrative Costs: It's often cheaper to administer than traditional farm insurance because it doesn't require individual farm assessments for losses.
- Quicker Payouts: Payouts can be faster since they're based on an area index, not on individual claims adjustments.
- Transparency: The index is usually based on publicly available data, making the process transparent.
- Income Security: Provides a safety net, allowing farmers to recover financially after a poor harvest and maintain income stability, helping you bounce back to your original income state.
- Encourages Investment: By mitigating risk, the insurance encourages farmers to invest more in inputs and improved farming practices, potentially increasing productivity.
- Support for Best Practices: Being under this insurance cover will give you tips on how to increase and protect your yields.
- Subsidized Options: Subsidized agriculture insurance options are available, potentially making this crucial coverage more accessible.
What is Not Covered:
- It's important to note that our Area Yield Index Insurance does not cover losses resulting from:
- Poor farm management
- Theft
- Wars
- Terrorism
Call expert
+256 (200915815 / 0800-300021)
Write email
info@aic.ug
Visit office
Plot 1, Vale Road, Kampala, Uganda