Real Estate Investor Magazine South Africa September/ October 2019 | Page 41

W
ith limited areas of arable land available for crop
production, limited water resources and the con-
stant risk of drought looming over the horizon,
farmers have had to take more notice of the various types
of risk that they face than ever before, says Phillip du Preez,
Head of Agriculture at Old Mutual Insure.
“Crop insurance, very much a ‘grudge purchase’ a few years
ago, is now being regarded as one of the primary ways of
reducing agricultural risk in a business where climate change
is having a dramatic impact on the environment. Farmers are
also conscious that although the drought that gripped the
Western Cape recently has loosened its hold the possibility of
future droughts and other weather-related damage to crops is
always a reality,” du Preez explains.
Du Preez adds that there are a range of risks which local
farmers must face every day.
“The risk for farmers also does not end once a crop has
been harvested. Many farmers assume responsibility for
moving crops from their farms and on to receiving depots.
The possibility of losses occurring through vehicle accidents
has encouraged many to cover themselves for this additional
contingency by insuring crops that are in transit. With insurance
cover in place, they can concentrate on their prime objective of
ensuring food security for South Africans.”
TECHNOLOGICAL ADVANCES
As with other spheres of commercial activity, technology has
brought changes to agricultural insurance. The primary benefit
for farmers is that the claims process has been simplified and
sped up, a boon for farmers who need capital available to keep
operating effectively.
Assessors now routinely visit farms and digitally capture
claims data on their electronic tablets. Information is then
submitted instantly to the claims department for settlement.
The claims process is quicker, capturing errors are minimised,
and the process between claims submission and payment
becomes painless.
AGRICROP
AgriCrop, Old Mutual Insure’s primary agricultural offering can
be adapted to fit the requirements of most crop farmers.
OFFERS COVERAGE FOR
Hail – the visible, taxable damage to plants caused
by the direct mechanical action of hail.
Fire and Lightning – the visible damage caused by
fire or lightning while the crop is on the insured
land.
Transit – the loss, destruction or damage to the
current season's insured crop caused by fire,
lightning, reversal, and collision by vehicles within
a radius of 100 km of the farm, within 30 days after
the harvest has been collected.
Frost damage – the visible, taxable damage
caused by frost to the plant or parts of the plant.
“South African agriculture is a major contributor to the
economy as it employs about 6.5% of the labour force and
contributes about 2.5% to national GDP. As a leading provider
of comprehensive crop insurance in the South African market,
Old Mutual Insure is committed to supporting the farming
community and assisting them to continue farming by
minimising the risks associated with agriculture,” says Du Preez.
SOURCE Old Mutual Insure
South African agriculture is
a major contributor to the
economy as it employs about
6.5% of the labour force and
contributes about 2.5% to
national GDP.
SA Real Estate Investor Magazine SEPTEMBER/OCTOBER 2019
39