Farmers need to get better insurance for their tractors
GAP insurance provider ALA has warned that farmers need a good insurance policy as protection in case their tractors are stolen. If this doesn’t happen, then the they might face a financial shortfall. ALA recently launched some new insurance products that are aimed specifically at agriculture market.
The GAP insurance offers cover for shortfall between the tractors market value at the theft time and either invoice price of automobile or outstanding finance amount depending on the product that you select.
ALA Simon England CEO said that there will be more than 13,000 new tractors registered but not a lot of tractor owners are aware that the policies of standard insurance will leave their pockets empty if there is any theft.
He said that they are aiming to make the farmers more aware of their products. There is something called Back to Invoice GAP Insurance – it covers difference between market value settlement and original invoice price. There is also Finance GAP Insurance – it covers any outstanding finance in events of loss and you get total loss claim. Such products, according to the CEO, give the farmers an increased peace of mind.
There is some leverage to what the CEO has to say. Here are stats revealed by recent studies -
- More than 1,900 tractors were stolen in the year 2010 which cost about 10 million pounds to insurer.
- Livestock and machinery worth 50 million pounds got stolen in 2010 from the British farms.
- The theft claims for tractor have increased about 64 percent in 2 years time.


Comments
Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!
You must be logged in to post a comment.