On this page:
- Crop Insurance Scheme (CGU)
- General Insurance (CGU)
- Fire Perils (CGU)
- Water Perils (CGU)
- CTP Insurance (NRMA)
Crop Insurance Scheme
CANEGROWERS long association with sugarcane crop insurance dates back to 1978. Ably supported by CGU Insurance since 1990, the Scheme has provided significant benefits to growers through quality protection and excellent claims service. Crop insurance is a members only offer for members of CANEGROWERS
The Crop Insurance Scheme was developed by CANEGROWERS to protect all cane on a mill area basis. With the advent of voluntary membership a small percentage of Queensland growers have not maintained their financial membership which included crop insurance protection.
CANEGROWERS has an outstanding record in the delivery of cane crop insurance for growers with substantial savings in premiums flowing to individual growers.
Much of the Scheme administration for the coordination of premium payments and claims processing has been managed by CANEGROWERS. In return CGU Insurance has paid commission to the organisation at both State and local levels, complementing the savings in premiums to individual growers.
General Insurance
General insurance arrangements for cane growers to cover on and off-farm assets and liabilities have been available as a CANEGROWERS service to members since 1978. CANEGROWERS has been able to deliver to individual cane growers what we consider to be the best insurance arrangements in Australia to service and support the insurance needs of growers and their family members.
Through its preferred insurer, CGU Insurance, CANEGROWERS has negotiated a quality insurance product designed specifically for cane growers as part of a very attractive package of competitive premiums, personalized professional service and prompt settlement of claims. CGU offers additional benefits that are only available to growers under the CANEGROWERS Canepol scheme.
Since first entering the field in 1978 CANEGROWERS, with the strong support of every CANEGROWERS District office, has been the market leader in insurance for cane growers, delivering what we believe is the best combination of policy protection and competitive premiums. CANEGROWERS deals direct with CGU Insurance and our partnership has delivered solid performances benefiting individual growers and the CANEGROWERS organization without the need for insurance brokers or external agents.
CGU Insurance has offices strategically located in five CANEGROWERS District offices. An on the farm service is available through eight District Managers with the expertise and local knowledge to develop a tailored insurance program to meet growers farming, business, family and personal needs.
CANEGROWERS has the potential to significantly increase the level of participation in the Canepol scheme for the benefit of individual growers and all levels of our organization. CANEGROWERS receives a commission from CGU Insurance for insurance policies taken out under the Canepol scheme. This commission represents a very valuable source of income to the Organisation and is used in providing services to members.
Crop Insurance Scheme
CANEGROWERS long association with sugarcane crop insurance dates back to 1978. The Crop Insurance Scheme has been developed by CANEGROWERS to protect all members’ sugarcane on a group basis for each of the respective mill areas.
CANEGROWERS has an outstanding record in the delivery of cane crop insurance for growers with substantial savings in premiums flowing to individual growers. Ably supported by CGU Insurance since 1990, the Scheme has provided significant benefits to growers through quality protection and excellent claims service.
Much of the Scheme administration for the coordination of premium payments and claims processing is managed by CANEGROWERS. In return CGU Insurance pays commission to the CANEGROWERS organization at both State and local levels, complementing the savings in premiums to individual growers.
Participation in the CANEGROWERS Members Fire Crop Insurance scheme is available to financial members who supply sugarcane for processing at Queensland’s sugar mills and for financial members of the New South Wales Cane Growers’ Association who supply sugarcane for processing at NSW sugar mills.
Commission received by CANEGROWERS from CGU is a very valuable source of income for the Organisation’s operations and is used to benefit members through the services provided.
Fire crop insurance summary
Underwriter: CGU Insurance
Policy coverage: There is no aggregate limit on the Fire only component of the Scheme, nor is there a sub-limit for an individual grower. The CANEGROWERS crop insurance service is available to CANEGROWERS financial members.
Peril Insured: Accidental loss by fire damage caused to standing cane (other than by controlled burn-off).
Period of Insurance: From 4.00 pm 1 June 2010 to 4.00 pm 1 June 2011.
Indemnity per Tonne of Cane: The Scheme offers an indemnity for a selected value per tonne of cane. A base rate of $20 per tonne of cane is available and the indemnity may be automatically increased to a maximum of $35 per tonne. Indemnity levels beyond $35 per tonne of cane are available subject to a pre-cover application to CGU Insurance.
The insurer's limit of liability per tonne of cane shall be for the value per tonne of cane selected subject always to the indemnity being limited to 90% of the value per tonne of cane at the sugar mill, whichever is the lesser for the grower concerned.
With regard to the process of determining the indemnity value per tonne of cane, care needs to be taken to ensure that the indemnity per tonne of cane selected is a realistic figure, bearing in mind that there needs to be an appropriate gap between the "milling" value and the insurance indemnity to guarantee incentive for the grower to harvest and deliver to the mill.
Premium Rate (including GST & stamp duty) - Fire Perils only:
The Fire Perils component of the Scheme is not dependent upon a minimum level of participation. For 2010/11, financial members in all Queensland mill areas and members of the NSW Cane Growers’ Association in the three mill areas in New South Wales are insured under CANEGROWERS Crop Insurance Scheme against accidental loss by fire. The premium rate paid by each grower reflects the respective mill area claims experience compared to the total scheme experience.
CGU Insurance has maintained the incentive discount of 10% from the initial fire premium rates quoted by CGU because we again achieved participation in all of the mill areas that were covered under last season's Fire Scheme. Full participation by mill areas means premium savings to participating financial members.
Voluntary Excess: A voluntary excess shall be limited to the nominated excess tonnage for any one Cane Production Area in any one policy period. There is no excess in respect to transit cover claims.
Green Cane: For those growers who customarily harvest and deliver green cane to the mill, CGU Insurance's policy is extended to cover the difference in payment to the grower whose cane is damaged by an insured peril and delivered to the mill as burnt cane.
Additional features:
(1) Additional costs CGU Insurance will pay for costs necessarily and reasonably incurred for:
(a) extinguishing a fire at or in the vicinity of the Cane Production Area land; and
(b) avoiding or diminishing a loss following an insured peril.
(2) Transit
Grower's harvested sugar cane is insured during land transit between the cane production area and the sugar mill to which it is to be delivered; subject to the loss arising from fire, flood, collision and/or overturning of the vehicle carrying the harvested cane.
(3) Hail damage
Loss or damage to standing cane by the impact of hailstones is covered subject to a maximum sum insured of $2,000 any one Cane Production Area.
"Top-up" Indemnity per tonne of cane: For those individual growers wishing to effect cover for an increased indemnity per tonne of cane above the Mill area indemnity, additional cover is automatically available for any selected value up to a maximum of $35 per tonne of cane. Notwithstanding the selection of this option for increased indemnity, claims will be settled at the increased indemnity value or 90% of the amount which the grower would have received if the grower's sugar cane had not been the subject of a claim, whichever is the lesser. Indemnity levels beyond $35 per tonne of cane are available subject to a pre-cover application to CGU Insurance.
An extra premium is payable for such an increase in indemnity and is calculated at a very competitive rate per tonne of cane based on the full crop estimate for the 2010 season for the individual grower, for each additional dollar of increase in indemnity per tonne of cane.
Commission: A commission of 10% of the net premium (i.e. the premium excluding statutory changes of GST and stamp duty) will be shared on the basis of 2.5% to CANEGROWERS Brisbane and 7.5% to the individual CANEGROWERS local company, determined on the basis of the relationship between the respective mill area and the total crop insured. In addition, CANEGROWERS Brisbane will receive a management fee from CGU Insurance of 2.5% of the net premium for co-ordinating calculation, collection, payment and reconciliation of the premiums for the Scheme. CANEGROWERS Brisbane also co-ordinates the processing of claims made under the Scheme on behalf of the parties.
Claims notification: Any event likely to give rise to a claim is to be notified to the underwriter as soon as reasonably practicable giving details of, and the time of, the occurrence of the insured peril. CGU Insurance has requested that a completed claim form and statement of claim be submitted within fourteen (14) days of the event. Growers are to use due diligence in doing all things reasonably practicable to minimise interruption of the business and to avoid or diminish the loss following an insured peril. A fire perils claim form is available from the local CANEGROWERS office.
Coverage: This Scheme is designed for participation by CANEGROWERS members on a group basis, for each respective mill area, for the protection of the total cane crop of the members supplying sugarcane to Queensland sugar mills and for members of the New South Wales Cane Growers’ Association who supply sugarcane for processing at the NSW sugar mills.
Recommendation: A major fire loss to standing cane or trash blanket cane could mean financial hardship for a grower. This Scheme allows growers to protect their sugarcane crop against accidental fire loss at a low premium cost. Please contact CANEGROWERS for more information on 07 3864 6444 or 1800 177 159.
CTP Insurance & Premium Comparison
Downloads
CANEGROWERS promotes this Compulsory Third Party (CTP) Insurance Scheme with NRMA Insurance Limited (NRMA) to assist growers to meet their mandatory legislative obligations for CTP insurance on registered motor vehicles. Under this arrangement cane growers and their family members can participate in the CANEGROWERS CTP insurance scheme at no additional cost to themselves. Growers can, therefore, utilize this CANEGROWERS scheme to fulfill their motor vehicle legal liability obligations with respect to personal injuries to third parties, in the event of a motor vehicle accident and at the same time benefit their own organisation at state and local levels.
With cane growers support CANEGROWERS will establish a sizeable portfolio of CTP business which will generate another source of income to help minimize membership fees as well as providing growers with this essential insurance protection.
Financial incentive to Growers and CANEGROWERS Organisation > The incentives under this facility provide the following payments by NRMA. Firstly, on nomination by the grower which gives NRMA the opportunity to be nominated as the CTP Insurer on the next registration renewal, NRMA pays CANEGROWERS a nomination fee of $5 per motor vehicle nominated. Secondly, NRMA pays a 5% commission under this facility which provides for such a payment by NRMA on the payment of the registration by the grower with NRMA as the CTP insurer. Therefore, when the grower receives the next registration renewal notice after the initial nomination it will include NRMA as the CTP Insurer. If the grower is satisfied with the premium quoted by NRMA Insurance as part of the registration renewal then the grower pays the registration and CANEGROWERS will receive a 5% commission on the CTP insurance component of the registration costs. The commission will be payable into the future while the CTP cover stays with NRMA, irrespective of who owns the motor vehicle at the time the CTP premium is paid to NRMA. The $5 up-front nomination fee and the 5% commission earned is shared on the basis of a 75%/25% split between the CANEGROWERS District/AREA office which introduced the business (75%) and CANEGROWERS Brisbane (25%). A grower’s nomination is not an obligation to insure with NRMA if the CTP insurance premium is not attractive to the grower at the time of the registration renewal. If per chance the grower can get a better deal elsewhere at the time the grower receives the registration renewal notice for the nominated vehicle, then the grower can change the CTP insurer on the back of the registration renewal notice to another licensed underwriter as part of the registration renewal process for that motor vehicle, without obligation to NRMA.
The beauty of this scheme is that it enables growers to fulfill their legal obligations to insure for third party personal injuries with respect to the use of registered motor vehicle at the same cost or at no extra cost and at the same time the grower’s participation in the CANEGROWERS scheme benefits the grower’s own organisation which in turn benefits the members. The CANEGROWERS CTP insurance scheme is promoted through NRMA Insurance which is part of the Insurance Australia Group and is recognized as one of Australia’s largest licensed insurers.
CANEGROWERS urges all members and their families to insure under the CANEGROWERS CTP Scheme at least some of their registered motor vehicles, if not all vehicles, to enable CANEGROWERS the opportunity to maximize the benefits that have been made available through this arrangement with NRMA and at the same time fulfil the growers CTP obligations.
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Greg Trost is your CANEGROWERS contact for crop and vehicle insurance questions. Click here for more information about Greg and for his full contact details
