Possibly the highest risk in terms of
animal well-being, can be apportioned to animals that are captured and held in
bomas awaiting sale at an auction.
Stress and injury followed by exposure resulting in mortality in the
short term, are the major contributors in this case .This would however be
determined by many factors all critical to the outcome of this exercise and
insurance rates are determined on the following basis:
1.Species – some species of animals are
‘’hardier’’ than others and adapt better to captivity and boma conditions,
therefore less risk. An example is Roan which do not adapt well to boma
confinement whereas Rhino and Buffalo generally do.
2.Veterinarian and capture team – the
handling of the animals at capture, loading and off-loading as well as transport
conditions are critical to their well-being.
3.Travelling distance and weather
conditions – obviously major factors as unfavourable temperatures and rain as
well as long periods standing and lack of bedding, feed, water and space are
sure to reduce chances of survival.
4.Boma conditions are critical and factors
to be considered when rating and considering a risk are – size and design of
the holding pens as well as shade, protection from the elements and duration
the animals are held in confinement. Strangely enough and depending on species
involved, it is sometimes advantageous to house animals for longer periods in
bomas prior to sale and relocation, than for shorter periods which can be
unsettling. A good example of this would be Rhino which become habituated to
boma conditions both pre and post-delivery and often then settle better in
their new environment if held in bomas for longer periods before being sold and
relocated.
Having consideration for all the above
mentioned however, it still is generally considered less ‘’risky’’ for all
species in terms of relocation, to be captured and relocated to their new
environment directly, rather than to endure boma confinement between capture
and delivery, even though in some cases, holding bomas are used at final
destination to acclimatise the animals to their new surroundings before being
released directly from the holding pens, into the veld.
Auction sales which offer animals for sale
on ‘’catalogue’’, are almost always viewed by insurers as a better risk and
mortality insurance rates will always be more favourable if cover is required
for capture and transport to the buyers property directly, than for the whole
procedure of capture, transport to auction site, boma cover, reloading and
transport to final destination at the buyers property, however prices attained
for animals on catalogue at sales are generally considered to be lower than
those achieved for live sales where the animals can be viewed by the
public/buyers, but there is obviously greater risk of mortality hence the
higher rate charged.
When consideration is given to the risk at
hand by insurers, there are a few options that are on offer. For full all
risks cover which is sometimes subject to certain
exclusions, depending on the underwriter and their policy wording a specific
rate would apply and this would hopefully be ‘’all encompassing’’ as far as the
owner of the animal is concerned. Buyers often just want to know that if the
animal he is insuring dies, there is cover and insurance will be paid, although
the polices available in the market are generally all encompassing, there are
certain underwriters who exclude some perils and these need to be explained to
any interested insurer – ‘’upfront’’ so that there is no misunderstanding.
Exclusions in cover in terms of this class
of insurance need to be clearly defined, explained and understood by the
insured prior to the contract being concluded.
Alternatives to the above could be
transportation risks only, capture risks only, cover while animals are in boma
only, and cover from loading from the auction bomas to final destination or a
combination of the above. Most wildlife insurance policies available are
flexible and will tailor-make cover to suite the owner’s requirements. There is
a growing tendency lately for the hosts of wildlife auctions to offer insurance
for all animals sold on auction. This generally seems to include cover from
fall of hammer, when the risk passes to the buyer, transport to the buyers
property as well as a short period (7 or 14 days) on veld after delivery. This
is advertised as ‘’free insurance’’ which should be catered for between insurer
and seller and if advertised as such, should not involve any premium payment
from the buyer. If however insurance is advertised as free or included with
purchase, then no ‘’top up’’ or any additional payment should be requested by
the seller in this regard. Some misunderstandings in this regard have led to
disgruntled buyers who feel they were misled.
The financial impact of adding insurance
premium to the purchase price of an animal can be further influenced by offers
of additional voluntary excess, no claim bonus discounts, monthly payment for
long term contracts and stop loss or limited loss cover which pegs insured
limits to an agreed value of the total sum insured. For example if a total herd
was valued at R10Million and the insured felt he had potential to lose a
maximum during any one period of insurance, of say R2 Million worth of game,
then the risk could be rated by most insurers on the R2 Million and not the
total R10 Million value at risk.
Finally, it is worth bearing in mind for
any readers of this article who may be owners of high value and exotic species
of game, that it is sometimes necessary for brokers and underwriters to seek re
insurance for animals with excessive values beyond normal mandates. These
amounts or limits differ from company to company but usually around R10 Million
in sum insured would necessitate additional participation from either an
international or local insurer to take on risk exposure in excess of the
mandated amount agreed to between intermediary and client and can sometimes
take a day or two to negotiate, so timorous notice is
required if cover is anticipated prior to purchase of the animal.
