Drought Index Insurance | Austrian hail insurance

Farmer Meier manages a grassland farm in the cadastral community of MusterKG. When he insured himself with the drought index insurance, he chose an insurance sum of 660 euros per hectare and cut as well as the “60/30” variant. Due to the lack of precipitation and extreme heat this year, farmer Meier reports the damage quickly and easily online via the portal at www.hagel.at

The Austrian hail insurance determines the amount of compensation for farmer Meier as follows:

  • A point is defined in each cadastral community for which the ZAMG delivers weather data that is used by the Austrian hail insurance.
  • Then the current amounts of precipitation are compared with the 10-year average and the precipitation deficits are determined. Two different time periods are used for this – the overall period and the short period.

In the overall period, the precipitation deficit is determined from April 1st to August 31st. According to ZAMG, it has rained an average of 480 mm at Mr. Meier in the cadastral community of MusterKG over the last 10 years. This year 384 mm of precipitation fell. The precipitation deficit in the overall period is 20%.

In the short period, the driest and hottest 42 consecutive days are determined – for grassland also in the period between April 1st and August 31st. For farmer Meier, the driest and hottest period was between July 1st and August 11th. According to ZAMG, it only rained 22 mm during this period. However, the average ten-year rainfall is 110 mm. This results in a precipitation deficit of 80%. In the short period, every hot day – that is, days over 30 degrees – increases the precipitation deficit by one percentage point. Farmer Meier had nine hot days during this period. This results in a precipitation deficit of 89% in the short period.

A table (available in the folder) regulates which compensation is paid out for which precipitation deficit. Farmer Meier receives compensation of €561 per hectare. In total, farmer Meier farms 20 hectares of grassland, which means that he receives a damage payment of €11,220. The money is in his account within a week. This helps him quickly and unbureaucratically.