Yields and/or Loan amounts exceeding UGX 30 million are covered under Multi-peril crop insurance and will be handled case by case with premium rates advised depending on the insurance risk assessment of the client.

What is covered?

The insurance cover pays for the yield shortfall below guaranteed level resulting from physical loss or damage of growing crops directly by listed perils.

Indemnity against physical loss or damage to growing crops directly by drought, excessive rainfall, uncontrollable pests and diseases, Fire, Lightning, Malicious damage, Earthquake, Riot and strikes, Explosion and Windstorms

The cover can also be extended to cover harvested yield being stored at the farm or any other place of temporary storage or to apply when the crop is in transit to any recognized destination within the country.

Basis of cover

The client has the option to insure;

• 100% of the input loan facility obtained for crop production
• Production costs that is costs incurred in running that enterprise e.g. cost of inputs, seeds, fertilizer, ploughing, weeding, agrochemicals etc.
• Expected yield by the farmer, where the value for insurance is calculated as:

Sum Insured = Planted Area (Acre) x Long Term Average Yield (kg/acre) x Pre-Agreed Value (UGX/kg) x 75% of Guaranteed Yield

Premium rates

•  3.5% of the expected yield/loan/amount insured in non-high risk areas (Net of the 30% Government premium subsidy).
• 2.00% of the expected yield/loan/amount insured for disaster prone areas (Net of the 80% Government premium subsidy).

This means the unsubsidised premium rate is 10% for high risk areas, and 5.0% for all the other districts.

Cover under Multi-Peril Crop Insurance will be subject to 5% Deductible which is the Insured’s contribution towards the claim/loss suffered.