Assured Products - Hail Risk in Pomaceous Fruit
Pomaceous fruit belongs to cultivations, which are extremely sensitive for hail. On about 35.800 ha, cultivation area there are harvested about 1 million tons of apples yearly – always depending on the weather. Regarding the pears, the cultivation area is about 2.500 ha and the crop yield at about 55.000 t.
- The production value amounts to approximately 248 million EUR;
- More than 40 % of the pomaceous fruit crop are insured against hail;
- Every year about 5 % to 20 % of the insured pomes area is damaged by hail. Claims of up to 20 million EUR arise.
Hail damage in pomaceous fruit
From the fructification to the maturation, the pomaceous fruit is particularly exposed to hail. There is basically to distinguish between damages at an early stage and those ones at a late stage.
- Damages at an early stage after fructification: depending on the intensity of the hailstorm, fruits will be cut off completely or partially. Stalk damages usually lead to drop offs of the fruits. Caused by hits and small lesions, the fruit is extremely deformed.
- Damages at a late stage: with increasing maturation, the fruits offer more contact surfaces for hailstones. Even a slight hailstorm at the maturation of the fruits may cause significant loss of quality. A corking of the damaged bark does not occur anymore or is only possible in an incompletely way.
- Consequence: the fruits are going to waste rapidly. A pomaceous fruit stock, which is hit strongly by hailstones at the moment of maturation, so that apples will have open lesions, is no more harvestable and will be considered as lost.
Vereinigte Hagel has developed three models of compensation – each determined to the individual structure of fruit-growing companies.
- The must fruit insurance (Type M) covers the quantitative crop loss. There will be evaluated fruits cut off, the weight loss caused by hail as well as fruit lesions, that do not allow maceration anymore;
- Insurance for direct selling with extended quality guarantee (Type S) includes also the coverage quality loss to the amount of 100 % for fruits, that are no more to macerate as well as 70 % respectively 30 % for fruits that do not comply anymore with product quality class 2 respectively to product quality class 1;
- Insurance for direct selling with total quality guarantee (type G) includes additionally to Type S coverage for quality losses to the amount of 50 % (instead of 30 %) for fruits, which don’t comply anymore to product quality class 1;
- Franchise regulation for type S and G: Both types have a flexible franchise regulation, which descends progressively with increasing claims amount from 20 % to 0 %. Important is: the higher the damage, the greater the benefit;
- A low cost co-insurance of fruit ligneous with a separate contract (coverage of secondary damages);
- Separate contracts according to the boundaries, where in case of a damage event the increased contributions only apply to the affected boundary and not the total area;
- Discounts will be allowed for multi-annual contracts as well as for no-claims years;
- Hail insurance for fruit under hail nets.
Dessert fruit type S
The insurer pays indemnity for damages, which occur to the insured pomaceous fruit as a quantitative but also a qualitative damage, which is demonstrably caused by hail. The quality loss is estimated all-inclusively according to fixed percentages of the crop yield.The valuation is based on defined quality levels, excluding the proof of higher damage. After the hail event and based on representative samples (each sample of 100 fruits) the classification of the fruits was done in 5 damage degree classes.
- Damage class 1a) fruits without hail damages respectively with repaired pericarp defects up to a total of 1 cm2 so that the fruits still meet the requirements of the product quality class I (see No. 5). Valuation of quality loss: 0 %.
- Damage class 1b) lesions of the pericarp, a few or more minimal lesions, signs of undulation, so that the fruits still meet the requirements of the product quality class I (see No. 5). Valuation of quality loss: 5 %.
- Damage class 2) Fruits with pericarp defects without perforations. The hail damages are well repaired and without scarring. The suitability for storage is not affected, pericarp defects by hail are allowed up to a total of 2,5 cm ², so that the fruits still meet the requirements of the product quality class II. Valuation of quality loss: 30 %.
- Damage class 3) fruits, which don’t belong no more to the product quality classes I and II, but objectively may be supplied for utilization as dessert fruit or other commercialisation.
- Valuation of quality loss: 70 %.
- Damage class 4) fruits with clearly visible unscarred hail damages with beginning rottenness. The suitability for storage and utilization (maceration) of the fruits is lost and they may no longer be supplied for any other commercialisation. Valuation of quality loss: 100 %.
- Total damages (after the fruit fall in June) are compensated in proportion of the total crop yield.
Hail damaged fruits, which previous to hail are not corresponding to the product quality classes II and I (e.g. by scurf, pest infestation etc.) are not considered as damaged and are assigned to the damage class I.
The loss of the suitability for maceration will be compensated. The total loss ratio is calculated by summing the partial rates of quality loss in the damage classes 2 to 4 and the quantitative crop loss.
Dessert fruit type G
The insurer pays indemnity for damages, which occur to the insured pomaceous fruit as a quantitative but also as a qualitative damage, which is demonstrably caused by hail. The quality loss is estimated all-inclusively according to fixed percentages of the crop yield.The valuation is based on defined quality levels, excluding the proof of higher damage. After the hail event and based on representative samples (each sample of 100 fruits) the classification of the fruits was done in 4 damage degree classes.
- damage class 1a + 1b: as type S
- damage class 2: as type S, but valuation of quality loss of 50 %
- damage class 3: as type S
- damage class 4: as type S
- Same as type S applies for hail damaged fruits, which did not correspond to the product quality classes I and II previous to hail; also the regulations for formation of the total loss ratio.