Agricultural Insurance

Concept of Coverage

Ta’awuniya Insurance Company provides agricultural insurance offering comprehensive coverage to farmers through two main services: Plant Agricultural Insurance and Livestock Agricultural Insurance. Each core service has its own set of insurance policies.

Objectives of Agricultural Insurance

1. Ensure continuity of productive activity, protect the farmer/producer, and compensate losses affecting production.
2. Provide the guarantees required by banks to enable financing, raise productivity, and address insolvency issues.
3. Improve farmers’ conditions and support their economic stability.
4. Promote solidarity and increase national savings.
5. Reduce government spending on disaster-relief impacts.
6. Protect national security, reduce risks, and help curb migration and displacement from rural areas.
7. Encourage development in rural and productive areas.

Types of Coverage

• Plant Agricultural Insurance

The company offers four different policy types under this service; key examples include:

• Irrigated Crop Insurance Policy

Covers drought/water-shortage risks due to reduced natural water levels or disruption/stoppage of water supply caused by unintentional canal breaks or an accidental incident that stops pumping. It also covers flooding caused by torrents, floods, and heavy rains; unusual diseases/pests beyond the insured’s control; unintentional crop fire within the farm; and storms/dust storms (e.g., haboob).

• Rainfed Crop Insurance Policy

Covers drought due to low rainfall; flooding due to excessive rainfall; local and widespread pests; covered crop diseases excluding smut and “Bayyoud” diseases; storms and cyclones; fires caused by lightning; hail and frost.

• Horticultural Crops Insurance Policy

Covers horticultural crops against pests and diseases according to the policy schedule per crop, widespread pests, unintentional fire, flooding caused by rain/torrents/floods, lightning, storms, hail, and frost. It also covers drought due to causes such as reduced natural water levels and disruption of irrigation supply from unintentional canal breaks or an accidental incident—provided the stoppage is not due to fuel shortage, pump breakdowns, or negligence.

• Greenhouses Insurance Policy

Provides two layers of coverage: engineering coverage (mechanical breakdown and engineering faults of attached equipment, fire and theft, and the greenhouse structure against natural hazards) and agricultural coverage (haboob/storms, torrents, floods, lightning, and pests/diseases beyond the insured’s control).

Issuance Procedures

1. Fill in the insurance application by the insured or their agent.
2. Review policy coverages and exclusions.
3. Inspect the farm to be insured.

Claims (Compensation) Procedures

1. Notification within (72) hours.
2. Submit an incident report detailing damages and extent of loss.
3. On-site assessment by a technical committee (company representative, bank/funder representative, and the farmer or their representative).
4. Compensation based on actual executed costs up to the loss stage, subject to committee recommendation and deductible/retention.