Australia - Fire insurance: Companies could review ag policies following harvester blazes

28.12.2016 358 views
GROWERS and contractor harvesters face insurance companies hiking up premiums or refusing to cover harvesters after a spate of header fires.
That’s according to peak harvest contractor body Australian Custom Harvesters. Insurance Council of Australia spokesman Campbell Fuller said while “headers have a high risk of fire” damage, several insurers were still offering cover for harvest equipment. However, he said “a single insurer has signalled to brokers that it will no longer operate in the Australian agricultural market after April (next year)”. There have been at least four serious fires started by headers in Victoria this year, with increased harvesting of legumes such as lentils and chick peas, which are more flammable than cereal crops. In NSW, fire authorities have reported an increase in fire damage from header fires, including a fire at West Wyalong, which burnt 7000ha and caused $500,000 in crop losses. Research by the Grains Research and Development Corporation and Kondinin Group released last month found about 7 per cent of harvesters a year catch fire. In these cases, one in 10 will cause major damage to the machine or surrounding crop. Australian Custom Harvesters executive officer Trevor Verlin said his association has been working to reduce header fires, but he was worried by the insurance industry’s concern about the risks.

“We do know fewer and fewer of the underwriters have been interested in taking on the risk of harvesters, as they do sometimes catch on fire,” he said.

He was told by an insurance agent recently “there would not be an underwriter that would cover harvesters”.
“This has the potential to have a significant impact on the ability to harvest the crop,” Mr Verlin said. “The grains industry is increasingly relying on professionals to come in and take off the crop quickly.” Grain Producers Australia chairman Andrew Weidemann, who was out fighting a fire started by a header last week, was working with industry to resolve the issue. Source - http://www.weeklytimesnow.com.au
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