New insurance scheme for farmers and fishers |03 February 2014

Farmers and boat owners can now register for an insurance policy under the Agriculture Disaster and Fisheries Insurance Scheme (Adfis) to help them during natural disasters or should the unthinkable happen to fishermen at sea.

It was the Minister of the Natural Resources (MNR) Peter Sinon who officially launched the Adfis with the collaboration of the Seychelles Fishing Authority (SFA) and Seychelles Agriculture Agency (SAA).

The ceremony took place at the SFA’s training room on Friday in the presence of the MNR principal secretary Michael Nalletamby, SFA’s chief executive Finley Racombo, SAA’s chief executive Marc Naiken, representatives of farmers and fishermen associations and of the insurance company affiliated with the Adfis.

The scheme is designed to provide fishermen with the necessary insurance protection they will need should the unthinkable happen to the fishermen and to provide farmers necessary insurance protection following an official declared disaster due to natural hazards.  

The voluntary scheme approved by the government is available for all full time farmers and boat owners registered with the SAA and the SFA. It is a condition however that boat owners and farmers who do not take part in the scheme will have no recourse or expect any support from the government and or scheme following any loss or natural disaster.

The agriculture disaster insurance scheme

The SAA’s role in the agriculture insurance scheme is to be the master policy holder, be the central agency for contact to farmers, be the centre of agriculture information to collect farm registration and farm survey data. SAA should have an annual update on the types of crop, value and livestock being produced by farmers. SAA should be the interface to the insurance sector. Create insurance file and provide insurance relevant information to the insurer and organising loss adjustment services for crops and livestock.

There are three different sections that are applicable to the farmer, who is considered the “beneficiary “ in insurance terms:

• Crop cover, which covers large losses due to natural catastrophes, such as excessive rain, flood, windstorm, drought and diseases/ pests if declared national disasters by the government. Insurance is paid for losses exceeding 20% of total crop values at risk at time of loss per event;

• Livestock cover covers large losses due to natural catastrophes and diseases, including excessive rain, flood, windstorm and drought. Indemnity is paid for losses exceeding 10% of total livestock values risk at time of loss per event;
 
• Personal accident sum insured limit is R100,000 per insured person. The farm owner and immediate family members are covered while working on the farm. Permanent or seasonal employed farm workers are insured, but only pre-advised. The cover is on occupational basis only.

The insurance cost 4% of the total sum insured of crop/ livestock value of which 50% paid is by the Seychelles government, therefore the net premium rate will be 2%.

Beneficiary must bear in mind that claims will be only eligible upon declaration of disaster by the government. The farmer must advise the SAA of the claim to be forwarded to the insurance company within 48hrs.

The insurance exclude intentional slaughter of livestock, failure to follow good farming/ harvesting practice, malicious wilful intentional acts by insured and employees, death caused by failure to provide care and attention, loss resulting from non-define acreage, where the farming is not in compliance with the acreage report, controllable diseases, weeds and/or controllable insect infestations. Personal accident excludes death or injury seasonal workers who have not been previously advised to the SAA, as well as excludes illnesses.

Farmers can also insure their infrastructure, machinery and equipment under the addition cover. These will be covered against fire and special hazards that is storm, heavy rains and floods.
All items must be of insurance standard.

This insurance cost a minimum of 0.25% of the total sum insured of infrastructure, machinery and equipment.

The fisheries insurance scheme

The role of the SFA in this scheme is to be the master policy holder, collect boat and owners’ information.

Like the agriculture insurance scheme the fisheries insurance scheme has three different sections applicable to the fisherman who is considered as the beneficiary:

• Marine hull covers the entire vessel and its machinery from damage sustained from perils of the sea, tsunami, fire, piracy, volcanic eruption and lighting. The sum insured will be calculated based on the valuation performed by a licensed and approved surveyor. The survey report must not be older than three months. The maximum sum insured eligible under the scheme is R2 million per vessel, and subject to an excess of R5,000 or 10% of the claim value, to be retained by the insured;

• Third party liability covers any loss or damage or injury caused by the insured to a third party, such as to any other vessel or property, accidental loss of life or bodily injury. The third party liability covers an annual limit of R500, 000. It is subject to an excess of R5,000 or 10% of the claim value, to be retained by the insured for the property damage. There is no excess for personal injury;

• Personal accident covers a combination of accidents which may result in bodily injury, accidental death, permanent total disablement, and permanent/partial disablement sustained by the insured. Illnesses are excluded. The maximum personal accident limit amounts to R100, 000 for any one fisherman. The compensation will be calculated as per the standard scale of compensation under the personal accident policy.

Each boat type has its number of maximum fishermen insured per boat. Mini Mahe up to three fishermen, Lekonomi up to four fishermen, Lavenir up to five fishermen, Whaler up to six fishermen, schooner up to seven fishermen, semi- industrial up to 10 fishermen.

The boat owner must advise the SFA of the claim to be forwarded to the insurance company within 48hrs. The insurer instructs the marine surveyor who provides an assessment report. The insurer verifies the loss report and calculates the indemnity payable. The insurer pays the insured/boat owner directly, witnessed by the SFA.

Premium for the comprehensive package is 4% of the insured boat value of which 50% will be subsidised by the Seychelles government, therefore the net premium rate to be paid by the beneficiary is 2%.

Main exclusion of the fisheries insurance scheme is motor falling overboard, fault in design or construction, negligence / lack of maintenance, loss of revenue/catch, latent/manufacturers defects, theft of outboard engines.

Both scheme leave out war strike riot and nuclear reaction.