Purchase of Policy

Loan Providing Institutions that are registered can buy the insurance using the online tool.
Annually - the policy terminates after one year.
100 % of the accrued loan or less per Loan Providing Institution.
Wind speed and rainfall which are extreme for the respective grid location.
No - the developed trigger reflects the individual risk experience and perception of each grid location.
The application form needs to be filled out. Besides the name of the Loan Providing Institution, the accrued loans per grid location need to be reported.
The insurance is based on annual premium. The premium should be paid with the submission of the application form.
Payments can be made either through the sales agent or via a bank accredited.
10 days after the receipt of annual premium the insurance will become effective.
Within the 10 days after receipt of the premium the Loan Providing Institution will receive a certificate of insurance plus the schedule of the accrued loans. In addition the Loan Providing Institution will receive an access code for the web based real-time monitoring system.

Operation & Claims

With the purchase of the policy every Loan Providing Institution will receive an access code to a real-time monitoring system. Every 3 hours the actual data will be adjusted and the affected grid locations visualized as well as categorized.
An independent consultant will be engaged to monitor the weather situation. Rainfall trigger is based on satellite data provided by the Tropical Rainfall Measuring Mission (TRMM). It is a joint mission between NASA and the Japan Aerospace Exploration Agency (JAXA) designed to monitor and study tropical rainfall. Wind-speed trigger is based on information from the National Hurricane Center (NHC) which is the division of the National Weather Service responsible for tracking and predicting weather systems within the tropics.
Irrespective of the real-time monitoring system claims - where actual trigger values and potential affected grid locations are disseminated ad hoc - within 10 days, there will be a first notice of loss to those Loan Providing Institutions whose reported accrued loans are allocated in the category of (15, 20, 40 or 100 year event) affected grid locations.
You will receive payout from the sales force.
The event with the highest intensity will be considered for the evaluation of the payout.
For all Loan Providing Institutions whose reported loans are allocated to a grid location affected by an event of the category 10, 30, 75 or 100 year event, an interim payout of 50% of the 100% calculated payout will be made within 14 days. Final payout will be made latest 60 days after the event.
The payout received by the Loan Providing Institution should be allocated to the borrowers subject to the guidelines jointly set up for this purpose.
No. The Loan Providing Institution will use the payout to help the affected members to rebuild their dwelling and livelihood, for example providing soft loans for house repair or to buy new stocks of the business or to replace damaged equipment for livelihood. The guidelines that define the forms of assistance and the manner of allocation to affected members are part of the terms and conditions of the insurance contract.
The insurance protects the portfolio of a Loan Providing Institution. Individual losses of borrowers are not covered and compensated hereunder.
The maximum annual payout per grid location is the 100% reported accrued loan per grid location.
No, the data collected within the first 10 days of event will differ slightly from the end results. But it will not have such a big difference.

Midterm Adjustment

In case your loan portfolio increases by 25% or the Loan Providing Institution provides loans in a grid location not reported, the Loan Providing Institution is entitled to insure the additional amount by an accessory contract. The accessory contract follows the terms and conditions of the main contract and terminates at the same time.
Yes - with the payment of the premium a waiting period of 10 days applies.
Premium is calculated on rata temporis basis including the waiting period of 10 days.

Expiring or Renewal of The Insurance Policy

30 days prior to the expiring date the Loan Providing Institution will receive a notice of the termination of the insurance policy as well as a new application form for the accrued loan to be reported.
If reported accrued loan remain unchanged please mark the application form “as expiring” and submit the form.
The annual premium should be paid 10 days prior to the renewal date.