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The National Wool Growers’ Association (NWGA) celebrates its centenary this year – a remarkable milestone that reflects its dedication to the industry. Reaching a milestone of this magnitude provides the perfect opportunity to reflect on the NWGA’s numerous projects and industry matters in which they have made, and continue to make, a significant difference.
An organisation that cares
A few years ago, the NWGA recognised a growing concern among wool producers: insuring their flocks had become almost unaffordable. The association therefore partnered with Hollard to develop a specialised insurance solution focussed on affordable disaster coverage. This coverage has saved many a producer from potentially devastating financial losses over the years.
In this celebratory year, the NWGA and Hollard once again came together to ensure that this solution evolves alongside the changing realities and unique challenges facing wool producers. At Hollard, we believe insurance should deliver tangible value to the NGWA, its members, producers, and the broader agricultural community.
The result is a user-friendly and affordable policy that retains the core foundational coverage of the original offering. Importantly, it provides producers with greater freedom of choice in selecting cover limits and levels.
A unique cover structure
This cover is designed to protect wool producers against events that are largely beyond their control:
- Fire, lightning, storms, water damage, hail, snow, and death due to exposure.
- Transit to and from the shearing shed (limited to R50 000 per event).
- Firefighting expenses for a transit claim (limited to R10 000).
- Automatic cover for lambs.
- A waiting period of ten days from acceptance of the application before cover becomes effective (Remember, there is no use taking out cover after disaster has already struck.)
- All shear-ready sheep must be insured.
Limits
- A single limit now applies per farm/yard. Producers may select a cover amount between R1 000 000 and R10 000 000.
- Producers must also select a per-animal limit, up to a maximum of R4 000 per animal.
- Lambs are automatically covered up to 12% of the number of insured sheep, subject to a maximum of R800 per lamb.
Rates
- NWGA members pay a rate of 0,35% per annum on their selected limit.
- Non-members will pay a rate of 0,65%.
- In addition to the existing benefits of NWGA membership, the preferential rate structure is designed to also encourage producers to join the NWGA.
Co-payment
- A co-payment of 10% of the claim amount applies to all claims, subject to a minimum of R25 000.
- For transit and firefighting expenses, the co-payment is 10% of the claim, with a minimum of R1 000.
Producers should also ensure that their cover is structured responsibly. For example, it makes little sense to state that you own 1 000 sheep valued at R4 000 each, yet insure the entire flock for only R1 000 000. You should either insure the flock for R4 000 000 or adjust the value per sheep to R1 000.
Premiums are calculated on the total insured amount. Insuring your flock for R1 000 000 would cost around R3 500 per year, while cover of R4 000 000 would amount to R14 000 per year. The premiums for non-NWGA members will be R6 500 and R26 000, respectively. – Andries Wiese, head of agriculture, Hollard
To ensure your cover is structured correctly, it is advisable to consult an experienced broker. For more information, sent an email to andriesw@hollard.co.za.
