Are you interested to learn about the Absa Agri insurance in South Africa? Then check out this guide.
Absa has partnered with farmers to boost South Africa’s agricultural sector.
The bank offers agribusiness banking products and services that are instrumental to efficient agriculture business.
We will first show you what Agri insurance is.
What Is An Agriculture Insurance
This valuable business risk management tool provides farmers with financial protection against production losses.
The losses might be caused by natural perils such as floods, hail, drought, wind, frost, and wildlife destruction.
These losses lead to a reduction of a farmer’s yield, thus affecting the general income of the farmer.
This insurance cover is available for all farmers in South Africa who grow an eligible crop.
Now that you understand what Agri insurance is, we will show you how the Absa Agri insurance works.
Absa Agri Insurance
The insurance covers damage due to local calamities like landslides and hailstorms.
There is also a cover for risk related to crops’ sowing, planting, and germination.
You are also covered in case of loss of standing crops and damage to the post-harvest crop.
You can ensure your crops are against damage at the stores before selling them against events like spillage.
Most post-harvest insurance covers losses for up to two weeks after crop harvesting.
In case of crop loss, you need to intimate the Absa insurance company or local agriculture department within 72 hours of the calamity.
The payout of the insurance will be calculated taking into account factors like weather and yield per hectare.
This is how the Absa Agri insurance works in South Africa.
Now that you know how this cover works, we will show you how to apply for the policy.
How To Apply Or Register For Absa Agri Insurance
You can visit any Absa branch near you and apply for this cover.
You must attach all the required documents like your national ID, proof of registration to a crop Sacco and proof of address to your application form.
Compare the crop policies, evaluate the risks and choose a policy that best suits your needs.
You then need to start paying your premiums and sign a commitment form indicating how you will be paying your premiums.
The premium depends on the type of Agri insurance you choose, crop type, location, historical yield data, and the calamity years.
This is how to apply for the Absa Agri insurance in South Africa.