Crop Insurance
Crop insurance deals with the financial protection against natural disasters, fire & lightening and insect / pets attack on standing crop. According to the survey, Pakistani economy is based on agricultural production so that’s why for the safety of farmer’s investment agriculture insurance become essential. Here for your help the UNITED INSURANCE provides you the best services for Crop Insurance.
What we are Giving
53246
Total No. of Policies
1,369 Million+
Premium
1,957 Million+
Total Claims
The care of human life is our first priority. Life is more worth than anything. From this point of view farmer insurance become equivalent important. The UIC offers you affordable farmer insurance packages with great benefits.
The crop insurance details are given below:
Farmer
Protected against default when crops fail.
Insurer
Selling and administration cost is greatly reduced due to larger business volume / turnover.
Farmer
Mandatory for all borrower farmers.
Farmer
- Project his source of credit and debit carrying capacity.
- Low premium rates.
Protected against default when crops fail.
Insurer
Selling and administration cost is greatly reduced due to larger business volume / turnover.
Farmer
Mandatory for all borrower farmers.
All field Crops.
Types of Cover
Perils Covered
Excessive rain, floods, drought, hailstorm, cyclones, insect/pest attack, Frost, wind storm and fire & lightening.
Period Covered
From sowing/transplanting till harvest i.e. standing crop.
Sum Insured
Amount of inputs or the outstanding amount of loan including mark-up. (Up to the amount shown on the Crop Policy).
Types of Cover
- Catastrophe Area Loss Cover (CALC)
- Catastrophe Individual Loss Cover (CILC)
Perils Covered
Excessive rain, floods, drought, hailstorm, cyclones, insect/pest attack, Frost, wind storm and fire & lightening.
Period Covered
From sowing/transplanting till harvest i.e. standing crop.
Sum Insured
Amount of inputs or the outstanding amount of loan including mark-up. (Up to the amount shown on the Crop Policy).
The Indemnity shall become payable provided:
- The insured crops situated in an area declared as “Calamity affected” by the government and the damage to the crop was due to any of the insured perils.
- The declaration is notified in the Gazette.
- The Insured farmer is exempted from the ushr / land revenue, etc as a result of such declaration.
- The name of the farmer and the insured crop has been entered in the USHR / LAND REVENUE Khasra Gardawari
What’s Covered
Compensation
Reference Yield
Reference Yield means the average yield (kg/Acer or kg/hectare) of the insured crop of same variety for the last three years (excluding any abnormal year) for the smallest of union council, tehsil or district for which the official yield records are available with Agri / Revenue Department.
Procedure of Payment of Premium
- Number(s) and date(s) of the Pay Order, Demand Draft(s).
- Branch Name & Code.
- Name(s) of the Borrower(s).
- Father’s Name of the Borrower(s).
- Complete Address.
- Photocopies of the CNIC(s) or CNIC Number.
- Loan Account Number & Financed Amount.
- Date when loan Granted.
- Previous Policy Number.
- Original Date when Loan Granted.
- Change in address of the Borrower / Bank, if any.
Click on the Link below to download Crop Insurance Proposal Form.
- Intimation letter within 72 hours.
- Attested copy the Gazette notification by the Government.
- The Ushr/Land revenue Jamabandi / Girdawari at the village/teh/chak level showing the Farmer’s name & Crop.
- Copy of field map (Shajra Kishtwari / Aks Shajra).
- Copy of Insurance Policy and CNIC.
- Attested computerized Loan statement.
- Attested copy of the application &/or agreement between the borrower & the Bank.
- Outstanding Bank Balance certificate at the time of calamity.
- Any other documents to establish the incident attracting the loss.
- Surveyor’s assessment report.
All payments of claims will be made to THE BANK on the basis of final assessment and as per the terms and conditions of the Policy.
Insurance Company will pay to the Bank outstanding loan including upto date accrued mark-up (up to the amount shown on the Insurance Certificate).
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Frequently Asked Questions
What is crop insurance and why is it important for farmers in Pakistan?
Crop insurance provides financial protection against losses due to natural disasters like floods, excessive rain, drought, and insect/pest attacks. In Pakistan, where agriculture is a significant part of the economy, crop insurance helps safeguard farmers' investments.
What crops are covered under crop insurance by The United Insurance?
The insurance covers all field crops grown by farmers, ensuring that various agricultural products are protected against multiple perils.
Who is eligible for crop insurance?
All farmers who have taken loans from banks for agricultural activities are eligible for crop insurance. This insurance is mandatory for borrower farmers.
What are the benefits of crop insurance for farmers, lenders, and insurers?
o Farmers: Protection against credit/debit issues and low premium rates.
o Lenders (Banks): Protection against loan defaults if crops fail.
o Insurers: Reduced administration costs due to higher business volumes.
o Lenders (Banks): Protection against loan defaults if crops fail.
o Insurers: Reduced administration costs due to higher business volumes.
What is the period covered under crop insurance?
The insurance covers the period from sowing or transplanting until harvest, meaning that it applies to standing crops during the growing season.
How can a farmer file a crop insurance claim?
To file a claim, the farmer must submit an intimation letter within 72 hours of the incident. The process also requires the Gazette notification by the government and relevant crop documentation like land revenue records (Jamabandi/Girdawari).
What conditions must be met for the indemnity to become payable?
The insured crops must be located in an area declared as "calamity-affected" by the government, and the crop damage should be caused by an insured peril, such as drought or flood.
How are crop losses compensated under the policy?
o Losses up to 25% are not claimed.
o Losses between 25% and 50% result in 50% compensation of the outstanding loan.
o Losses greater than 50% lead to full compensation of the outstanding loan.
o Losses between 25% and 50% result in 50% compensation of the outstanding loan.
o Losses greater than 50% lead to full compensation of the outstanding loan.
What documents are required for claim settlement?
Documents include the insurance policy, field map, crop documentation (Ushr/Land Revenue Jamabandi), outstanding bank balance certificate, and surveyor's report.
Who receives the claim payment after assessment?
The bank receives the claim payment based on the final assessment. The payment includes the outstanding loan amount and accrued mark-up, as per the terms of the insurance policy.
What types of coverage are available under the crop insurance policy?
There are two types of coverage:
-
- Catastrophe Area Loss Cover (CALC)
- Catastrophe Individual Loss Cover (CILC)
- CILC is determined in conjunction with CALC.
What perils are covered under crop insurance?
The policy covers natural disasters such as excessive rain, floods, drought, hailstorms, cyclones, insect/pest attacks, frost, windstorms, and fire/lightning.
What is the sum insured under crop insurance?
The sum insured includes the amount of inputs or the outstanding loan amount (including mark-up), as per the Crop Policy details.
What is the "Reference Yield" used for claims?
The reference yield is the average yield of the same crop variety over the past three years in the smallest geographic area (union council, tehsil, or district) for which official records are available.
Is crop insurance mandatory for all farmers?
Crop insurance is mandatory for all farmers who have borrowed loans from banks, ensuring they are protected against potential crop losses.
How can a crop insurance policy be renewed?
Renewal requires submission of the previous policy number, original loan grant date, and any updates to the borrower's or bank's address. A premium payment must also be made.
What information is needed to issue or renew a crop insurance policy?
Information such as loan details, borrower’s name, father’s name, CNIC, loan account number, and branch details must be provided to issue or renew the policy.
What happens if there is a delay in premium payment for renewal?
The bank manager must issue an undertaking in case of a delay in premium payment. The borrower's signature on an Iqrar Nama is required when the loan is disbursed.
Is crop insurance renewal compulsory for all borrowers?
Yes, crop insurance renewal is compulsory for all borrowers to ensure continued protection against crop losses and financial risk.
How long is the crop insurance policy valid after renewal?
The crop insurance policy is valid from the sowing or transplanting stage until the crop is harvested, ensuring protection throughout the crop's growth cycle.
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