Applicability:

This insurance scheme is applicable to Pulpwood tree growers and producers, whose produce/yields are likely to be affected by the specified perils. The product shall be offered for Pulpwood trees in specific geographic locations with adequate infrastructure and facilities to grow the crop. The trees covered under the policy are:

1. Eucalyptus
2. Poplar
3. Subabul
4. Casuarina

Scope of Cover

The policy shall cover and indemnify the insured against pecuniary loss suffered by the insured in respect of cost of inputs (agreed value) on account of the total loss or damage to the trees occasioned by specified perils/risks like Fire, Flood, Cyclone, storm, Frost and Pest & diseases etc., either in isolation or concurrently. Total loss shall mean loss or damage to individual Pulpwood plant or entire plantation or part thereof leading to death of the plant or making the plant economically unproductive.

Sum Insured

Sum Insured is based on cost of inputs (agreed value) per unit area of insurance covered which will depend on nature of tree, age of tree. Sum Insured is broadly equivalent to input cost, and can extend up to 125% / 150% of the input cost at the discretion of the insurer.

Premium

The premium rate has been arrived at on the basis of

(a) risk profile of the tree / crop;
(b) nature of risks covered; 
(c) geographical location; 
(d) rate charged by other insurers for similar risks;
(e) deductibles, and
(f) loading for various costs and expenses of the insurer.

Period of insurance:

The Policy period is annual, with a provision to go for policy of up to 5 years duration.