For the first time in the cotton farming industry in Greece, Thrakika Ekkokkistiria S.A. in collaboration with Interamerican have provided participating farmers with the advantage of additional private insurance for their crops. The insurance includes protection from natural phenomena and covers the real production value at a premium collective cost.
Until now, the cotton farmers could only be insured through ELGA (Hellenic Agricultural Insurance Organization).
The additional insurance by Interamerican operates as follows:
Example of additional insurance
Value to be insured
ELGA calculates the value to be insured as follows:
Median production per stremma for the specific crop and prefecture (in kilos/stremma) x (times) Median product price over the last 5 years (euro/kilo)
Eg. 265 kilos/stremma x 0,43 €/kilo = 114 €/stremma (example)
Interamerican calculates the value to be insured as follows:
- 150 €/stremma for irrigated plots
- 85 €/stremma for dryland plots
Damage rate calculation
ELGA auditors assess the damage and calculate the rate. The compensation offered by Interamerican is based on this calculation.
Compensation amount
Compensation by ELGA is calculated as follows:
Value to be insured x (damage rate -15%) x 0,88
Eg. if the damage is at 30%: 114 x (30% – 15%) x 0,88 = 15 €/stremma (example)
Interamerican calculates: Damage = Value to be Insured x damage rate
In our example with an irrigated plot: Damage = 150 x 30% = 45 €/stremma
Thus the damage not covered is: 45 – 15 = 30 €/stremma
Interamerican compensates at 90% of the damage not covered, that is:
Compensation by Interamerican: 30 x 90% = 27 €/stremma