The policy shall
cover and indemnify the insured against financial loss suffered by the insured in
respect of cost of inputs on account of the total loss or damage to the trees/ plants
occasioned by natural calamities like Flood, Cyclone, storm, Frost and Pest & diseases
etc.. either in isolation or concurrently.
Coverage in Plantation insurance Policy is provided for :-
(1) Provides for optional cover against drought risk.
(2) Maximum Liability is linked to cost of cultivation & age of trees/plants and
varies from species to species.
(3) The policy period is annual, with a provision to go for policy of 3 or 5 years..
(4) The Premium is arrived at on the basis of (a) risk profile of the tree/crop.(b)
nature of risk covered,(c) Geographical location,(d) Rate charged by other insurers
for similar risks.(e) loading for various costs and expenses of the insurer.