TBR Financial Services with Land Bank Insurance Company introduce short term agricultural covers LBIC provides short term insurance solutions for all agricultural activities within South Africa. The products focus on catering for your insurance needs in the agricultural sector.

• Pasture Drought Index Insurance (PDII)

PDII is a new insurance solution that protects herders from forage scarcity due to drought conditions in their district. Forage scarcity results in reduced milk production, weaker animals hence higher likelihood of diseases and higher mortality rate. Forage scarcity is measured by a vegetation index with satellite technology at district level. If the reported vegetation index level falls below a predefined value (trigger), all herders in the district get a payout. Unlike traditional insurance, there is no proof and quantification of loss as the vegetation index serves as proof of loss. Any loss payment is wired to the policyholder automatically after 40 days.

• Vegetation Index (NDVI)

Satellites circle around the globe and observe the planet.They measure many parameters including the greenness of the ground.This is called a vegetation index or NDVI.

• Seasonality

The vegetation in South Africa shows a distinct seasonal pattern, with vegetation peaking in March and lowest values in August. The cover measures the vegetation accumulation until March and pays if the values are significantly below the average. Livestock types covered
The insurance covers cows, calves, sheep and goats. The sum insured is based on the estimated cost of feeding (Forage) the insured livestock within the cover period, per Livestock Unit equivalents. The sum insured of forage for each animal is converted in the table:



What is covered
The insurance exclusively covers forage deficit on district level due to drought conditions.