The conclusion of insurance contracts is performed for the period of one season (cycle) in growing a crop; the policy period cannot be longer than the period for gathering the future (expected) harvest, determined due to agricultural requirements for a certain region.
Voluntary future crop insurance may be performed against all or separately chosen risks:
frosts, ice-crusted ground, freezing;
hail or stroke of lightning;
avalanche, landslide, earth or earth-water flow;
fire, except forest fires;
storm, hurricane, blizzard;
heavy showers, flood;
drought or dewatering on the lands, which are to forced watering or flooding;
epiphytotic development of plant diseases;
epiphytotic reproduction of plants’ vermin;
secondary plant diseases, as a result of occurring the above-mentioned risks;
illegal activities of parties, such as thefts, rowdy actions as to vegetable plantations, destruction of coverings (bearing constructions) of greenhouses, seedbeds, glasshouses.
Sum insured is determined as a cost of future harvest, calculated through multiplication of the average crop capacity in the farm (district) for the previous 5 (five) years by acreage under crops and the cost of harvest metric unit for the proper agricultural output.
Insurance tariff is determined taking into consideration chosen risks, region, kind of crop, crop condition, which is accepted for insurance, the amount of franchise and is within 0,3% to 10,76% of Sum insured.
Payment of insurance indemnity is performed taking into consideration the amount of the direct loss, caused to planting of insured crops. Direct loss is determined for the whole the farm as a part of the planned harvests that has been lost as a result of influence of insurance risks, mentioned in the insurance contract.