Claims against the Fund
Members must manage their wheat and barley production so as to minimise the risk of Claims for payment from the Fund.
The payment of a Claim is in the absolute discretion of the Trustee.
A Claim may be made where a fall in crop yields for wheat and barley leads to the Value of Production being less than the Underwritten Value as a result of a natural event (such as lack of moisture, fire, hail or frost) which is beyond the control of the Member.
CBH Mutual has absolute discretion to evaluate the Claim and if it believes that the fall in crop yields was within the control of the Member, then it may decline the Claim. The Cover will not apply in relation to any loss in value due to storage or transport of grain.
CBH Mutual may also adjust the Value of Production for the purposes of assessing a Claim where it believes circumstances have led to generation of crop yields, but fail to result in delivery of grain, for example, as a result of grain being used for seed, crops being cut for hay or otherwise used for purposes other than delivery of grain.
A Member must notify the Trustee, by notifying the Claims Manager in writing, of any Claim or any circumstance or occurrence, which is likely to give rise to a Claim. Upon notification of a Claim, the Claims Manager (by delegated authority of the Trustee) will investigate the Claim, make an assessment of the Claim, determine which Annual Fund applies to the Claim, and report to the Trustee with its findings. The Trustee has absolute discretion concerning the payment of Claims.
Do not destroy evidence that is needed to support your claim without clear direction from CBH Mutual, preferably in writing!
How do I know when to file a claim?
Any time you have crop damage that will adversely affect your yield, or the value of your crop,
you may be eligible to file a claim.
You should notify CBH Mutual of any damage to crop as soon as possible but no later than 7 days after discovery of crop damage. As a practical matter, you should always contact CBH Mutual immediately when you discover crop damage.
In some cases, you may discover a loss while you are harvesting (a row crop for instance). Stop harvesting and contact CBH Mutual right away. In the event of crop losses, you must file notice immediately after each unit is harvested (within 7 days) and before the end of the 31 January 2012 the latest.
Reporting
A Member must notify CBH Mutual within 7 days of the occurrence of a natural event which is likely to materially adversely affect the Member's production of wheat or barley (Material Adverse Event) and must provide details of the Material Adverse Event and its anticipated impact on the Member's yield of wheat and barley.
If a Member fails to report a Material Adverse Event CBH Mutual may, without prejudice to any of its other rights and remedies, terminate the Member's Cover by notice to the Member.
A Member must provide a report to CBH Mutual on the 15th of every month from August until November, using the form prescribed by CBH Mutual from time to time, detailing:
- the Member's then anticipated yield of wheat and barley per hectare for the Fund Year; and
- any Material Adverse Events which occurred during the preceding month.
How do I initiate a claim?
Call CBH Mutual on 1300 361 384 or email cbhmutual.au@willis.com and follow up in writing preferably with a claims form available at www.cbhmutual.com.au (keep a copy for your records).
If required CBH Mutual will arrange for a loss adjuster to inspect your crop. It is your responsibility to contact CBH Mutual and initiate this process.
How soon should I expect an adjuster?
In practice, there are different levels of urgency for crop inspectors.
If you are still within the window of opportunity to replant your crop, or switch to another crop,
contact CBH Mutual immediately. Every effort will be made to get an adjuster out right away.
If, later in the growing season, your crop is wiped out by a cyclone, for example, or if a severe
drought has damaged your crop, you still need to contact CBH Mutual — but the urgency for an inspection depends on your intentions. If you want to destroy the crop (perhaps to plant a cover crop), then an adjuster needs to come out first — before you do anything. If, on the other hand, you intend to continue to care for the crop and harvest what you can, there is less urgency for the adjuster to make the inspection immediately. Even so, an assessment of damage should be done as soon as practical.
While you wait for the adjuster, remember these rules:
- Do not destroy any of your crop.
- Do not disk.
- Do not plow.
- Do not replant.
- Do nothing to destroy your crop until you have permission from a claims adjuster or a CBH Mutual representative to do so.
Remember: Don't destroy the evidence.
What should I expect from the adjuster?
The adjuster should contact you to schedule an inspection. He or she will expect and welcome your presence and help during the inspection. The adjuster will be interested in what you have to say.
You can expect the adjuster to be familiar with your cover and to explain your options.
You should have documentation ready to show the number of hectares planted and locations of your covered crops.
The adjuster should have copies of your crop cover documents, PDS and your Actual Production History.
How is my crop yield calculated?
For some crops, counting plants within a sample area at various locations in the field is a part
of the process.
Adjusters may take pictures of your fields. They may check with your neighbours on the condition of their crops and they may check with the local grain marketer for average yields in the area. They may even consult local weather data or request physical evidence of costs incurred for planting, such as receipts and invoices.
Calculating crop yield is not guesswork. It is a disciplined process.
Authority
Members irrevocably authorise CBH to inform CBH Mutual, upon request by CBH Mutual on or before 31 January 2012, of the total tonnes of wheat and barley delivered by the Member to CBH during the Fund Year for the particular commodity and delivery number as provided by CBH Mutual.
