cropINSURE Example Policy Wordings
Introduction
The following sample policy wordings illustrate how Riskwolf's parametric insurance solutions can be structured for different agricultural risk scenarios. These examples demonstrate how the weather indices are incorporated into formal insurance contracts.
Basic Policy Template
| Policy Item | Description |
|---|---|
| Peril | This parametric insurance Policy will cover the Insured against Low total cumulative rainfall during a specified time period, as detailed hereinbelow. |
| Policy Period | As per schedule attached to the policy. |
| Policy Term | As per schedule attached to the policy. This contract shall expire at the end of the Risk Coverage Period unless specified otherwise in the policy schedule. |
| Reference Area | The Area of the grid box of 0.25 degrees x 0.25 degrees based on longitude and latitude as specified in the policy schedule. All claims will be settled basis the readings observed over the reference area, irrespective of actual rainfall experienced by the policyholder. |
| Reference Weather Data Source | CHIRPS, ERA5, or other source as specified in the policy schedule. |
| Loss Notification | The Calculation Agent will be responsible for notifying the insurer about a payout due under this contract within 15 days after the Risk Coverage End Date. |
| Risk Coverage Start Date | As per schedule attached to the policy. |
| Risk Coverage End Date | As per schedule attached to the policy. |
| Sum Insured | As per schedule attached to the policy. |
| Insured | As per schedule attached to the policy. |
| Premium | As per schedule attached to the policy. |
| Coverage Details | This parametric insurance policy covers the insured against the risk of low total cumulative rainfall during the risk coverage period. In case the total cumulative rainfall is equal to or less than the trigger or strike, the insured is eligible for a claim under this insurance policy. |
| Index | Total Cumulative Rainfall (TCR) refers to the sum of daily rainfall amounts from the Risk Coverage Start Date to the Risk Coverage End Date during the Risk Coverage Period. |
| Trigger | If the Total Cumulative Rainfall (TCR) measured over the Reference Area for the Risk Coverage Period is less than or equal to the 'Strike' level as per the schedule, the policy is triggered. |
| Strike | The level of TCR below which a payout is triggered is specified in the schedule attached to the policy. |
| Exit | The TCR level at or below which the maximum payout is made, as specified in the schedule attached to the policy. |
| Payout Structure | This Policy provides for payment of claim if the Index value as observed during the risk coverage period falls below the Strike value. The claim amount will be linearly interpolated from zero, when the observed index equals the Strike value, to the Maximum Claim Amount when the observed index equals the Exit value. |
| Payout Formula | If TCR >= Strike, Payout = 0 If TCR < Strike and TCR > Exit, Payout = [(Strike - TCR) / (Strike - Exit)] * Sum Insured If TCR <= Exit, Payout = Sum Insured |
| Claim Settlement | The claim if any would be settled within 15 working days of receipt of notification from the Calculation Agent. |
| Claim Documentation | At the time of settling claims the insured shall be required to furnish one or more of the following documents to Insurer: 1. Copy of Cover Note / Policy 2. Proof of insurable interest: Land ownership or lease documents |
| Contact | 1. Calculation Agent - Riskwolf AG 2. Claims Intimation / Redressal - Insurer |
Example 1: Drought Protection for Sugarcane
PARAMETRIC WEATHER INSURANCE POLICY
SCHEDULE
| Item | Details |
|---|---|
| Policy Number | RW-CROP-SG-2025-0421 |
| Insured | Kumar Sugarcane Cooperative |
| Risk Location | Solapur District, Maharashtra (17.6599° N, 75.9064° E) |
| Covered Area | 50 hectares of sugarcane cultivation |
| Sum Insured | ₹60,000 per hectare |
| Premium | ₹4,200 per hectare |
| Policy Period | 01 January 2025 to 31 December 2025 |
| Risk Coverage Period | 01 June 2025 to 30 September 2025 (Monsoon Growth Phase) |
| Reference Weather Data | CHIRPS Gridded Rainfall Data (0.05° resolution) |
| Weather Index | Aggregate of rainfall over respective phases |
| Strike (Trigger) | 600 mm of total rainfall during Risk Coverage Period |
| Exit | 400 mm of total rainfall during Risk Coverage Period |
| Payout Structure | Linear between Strike and Exit |
COVERAGE TERMS
This parametric insurance policy covers the Insured against the financial impact of insufficient rainfall during the critical monsoon growth phase for sugarcane cultivation.
INDEX DEFINITION
The index "Aggregate of rainfall over respective phases" measures the total accumulated rainfall (in millimeters) recorded at the Reference Weather Station during the Risk Coverage Period.
PAYOUT CALCULATION
- If Total Rainfall ≥ 600mm: No payout
- If Total Rainfall < 600mm and > 400mm: Proportional payout based on formula below
- If Total Rainfall ≤ 400mm: 100% payout (₹60,000 per hectare)
Payout Formula: [(Strike - Recorded Rainfall) / (Strike - Exit)] × Sum Insured
Example calculation: If total rainfall recorded is 420mm: [(600 - 420) / (600 - 400)] × ₹60,000 = (180/200) × ₹60,000 = 0.9 × ₹60,000 = ₹54,000 per hectare
Example 2: Excess Rainfall Protection for Citrus
PARAMETRIC WEATHER INSURANCE POLICY
SCHEDULE
| Item | Details |
|---|---|
| Policy Number | RW-CROP-OR-2025-1672 |
| Insured | Nagpur Citrus Growers Association |
| Risk Location | Nagpur District, Maharashtra (21.1458° N, 79.0882° E) |
| Covered Area | 25 hectares of orange orchards |
| Sum Insured | ₹13,000 per hectare |
| Premium | ₹1,040 per hectare |
| Policy Period | 01 January 2025 to 31 December 2025 |
| Risk Coverage Period | 01 August 2025 to 31 August 2025 (Fruit Development Phase) |
| Reference Weather Data | IMD Gridded Rainfall Data (0.25° resolution) |
| Weather Index | Highest of 4 consecutive days cumulative rainfall |
| Strike (Trigger) | 150 mm of rainfall over any 4 consecutive days during Risk Coverage Period |
| Exit | 200 mm of rainfall over any 4 consecutive days during Risk Coverage Period |
| Payout Structure | Linear between Strike and Exit |
COVERAGE TERMS
This parametric insurance policy covers the Insured against the financial impact of excessive rainfall during the critical fruit development phase for orange cultivation, which can lead to fruit rot, delayed coloring, and quality issues.
INDEX DEFINITION
The index "Highest of 4 consecutive days cumulative rainfall" measures the maximum total rainfall recorded over any 4 consecutive days within the Risk Coverage Period.
PAYOUT CALCULATION
- If Maximum 4-day Rainfall ≤ 150mm: No payout
- If Maximum 4-day Rainfall > 150mm and < 200mm: Proportional payout based on formula below
- If Maximum 4-day Rainfall ≥ 200mm: 100% payout (₹13,000 per hectare)
Payout Formula: [(Recorded Maximum 4-day Rainfall - Strike) / (Exit - Strike)] × Sum Insured
Example calculation: If maximum 4-day rainfall recorded is 160mm: [(160 - 150) / (200 - 150)] × ₹13,000 = (10/50) × ₹13,000 = 0.2 × ₹13,000 = ₹2,600 per hectare
Example 3: Temperature Stress Protection for Apples
PARAMETRIC WEATHER INSURANCE POLICY
SCHEDULE
| Item | Details |
|---|---|
| Policy Number | RW-CROP-AP-2025-8901 |
| Insured | Kashmir Valley Apple Producers |
| Risk Location | Shopian District, Kashmir (33.7198° N, 74.8304° E) |
| Covered Area | 15 hectares of apple orchards |
| Sum Insured | ₹6,400 per hectare |
| Premium | ₹512 per hectare |
| Policy Period | 01 January 2025 to 31 December 2025 |
| Risk Coverage Period | 01 March 2025 to 31 March 2025 (Flowering Phase) |
| Reference Weather Data | ECMWF ERA5 Land (0.1° resolution) |
| Weather Index | Sum of upward deviation of daily Max. Temperature and downward deviation of daily Min. Temperature |
| Strike (Trigger) | 5°C cumulative temperature deviation during Risk Coverage Period |
| Exit | 15°C cumulative temperature deviation during Risk Coverage Period |
| Payout Structure | Linear between Strike and Exit |
COVERAGE TERMS
This parametric insurance policy covers the Insured against the financial impact of temperature stress during the critical flowering phase for apple cultivation, which can result in reduced flowering and poor fruit set.
INDEX DEFINITION
The index measures the combined effect of both daytime heat stress and nighttime cold stress by summing:
- The daily upward deviations of maximum temperature above 20°C
- The daily downward deviations of minimum temperature below 5°C
PAYOUT CALCULATION
- If Cumulative Deviation ≤ 5°C: No payout
- If Cumulative Deviation > 5°C and < 15°C: Proportional payout based on formula below
- If Cumulative Deviation ≥ 15°C: 100% payout (₹6,400 per hectare)
Payout Formula: [(Recorded Cumulative Deviation - Strike) / (Exit - Strike)] × Sum Insured
Example calculation: If cumulative deviation recorded is 8°C: [(8 - 5) / (15 - 5)] × ₹6,400 = (3/10) × ₹6,400 = 0.3 × ₹6,400 = ₹1,920 per hectare
Note: These are sample policy wordings for illustration purposes only. Actual policy wordings may vary based on specific requirements, local regulations, and individual risk assessments.