Sugar Insurance Fund Act

Act 4 of 1974

Sugar Insurance Fund Act

Mauritius

Sugar Insurance Fund Act

Act 4 of 1974

  • Commenced on 1 June 1974
  • [This is the version of this document at 30 June 2017.]

Part I – Preliminary

1. Short title

This Act may be cited as the Sugar Insurance Fund Act.

2. Interpretation

In this Act—"average sugar yield per arpent" means the average cane yield in tonnes per arpent harvested and converted to sugar by reference to extraction;"average sugar yield per hectare" means the average cane yield in tonnes per hectare harvested and converted to sugar by reference to extraction;"Board" means the Sugar Insurance Fund Board referred to in section 4;"Bulk Sugar Insurance Account" means the Bulk Sugar Insurance Account referred to in section 19;"cane plantation" includes all the canes grown by a planter or métayer in a factory area in any given year whether or not these canes were grown in previous years by some other planter or métayer;"Chairperson" means the Chairperson of the Board;"Committee" means the Investment Committee established under section 10;"co-operative society" means a co-operative society registered under the Co-operatives Act;"crop year" means the period beginning on 1 June in any year and ending on 31 May in the following year;"Director"—(a)means a Director of the Board; and(b)includes the Chairperson;"employee" means a person, other than an officer, employed by the Board;"enlarged factory area"—(a)means a factory area; and(b)includes any other area or region from which canes are delivered to a factory in operation in the factory area, following any previ­ous or future closing down of another factory to which that area or region was assigned before the closing down;"event year" means a crop year declared as such under section 25;"excessive rainfall" means excessive rainfall with or without the yellow spot disease (Cercospora Koxpkei);"extraction" means the average percentage, determined by the Board and calculated to 2 decimal places of the sugar recovered from the cane supplied to a factory by an insured;"factory" means a sugar factory;"factory area" has the same meaning as in the Mauritius Cane Industry Authority Act;"Fire Insurance Account" means the Fire Insurance Account referred to in section 19;"fire insurance premium" means the premium referred to in section 34;"Fund" means the Sugar Insurance Fund established under section 3;"General Insurance Account" means the General Insurance Account referred to in section 19;"general insurance premium" means the premium determined in accordance with section 24 (6);"General Manager" means the General Manager of the Board appointed under section 12;"growing unit" means a grouping of planters, other than large planters, and métayers cultivating cane in any prescribed area;"insurable sugar" means, in the case of—(a)a large planter or growing unit, the insurable sugar determined in accordance with section 22;(b)a miller, the insurable sugar determined in accordance with section 23;"insurance contract" means an insurance contract referred to in sections 3 and 33A;"insured" means a miller, a planter, a métayer or a refiner;"large planter" means a planter who cultivates cane, whether in one or more factory areas, on an extent under cane of not less than 300 hec­tares;"métayer" means a person who, by agreement with a planter, culti­vates cane on land which belongs to the planter and, in consideration for the use of the land, gives the planter a portion of the annual sugar yield of such land, with or without any additional payment;"miller" has the same meaning as in the Mauritius Cane Industry Authority Act;"Minister" means the Minister to whom responsibility for the subject of finance is assigned;"normal years", in relation to a large planter or growing unit, means the 3 crop years of the 8 crop years preceding any crop year which had the highest average sugar yield per hectare;"officer" means a person employed by the Board to perform adminis­trative or technical duties;"plantation white sugar" means sugar which has a polarisation of more than 99 but less than 99.7;"planter" has the same meaning as in the Mauritius Cane Industry Authority Act;"prescribed area" means such area as may be prescribed by the Minister, following the advice of a consulting actuary under section 48;"prescribed percentage of the total insurable sugar" means such percentage of total insurable sugar as may be prescribed by the Minister for an area, following the advice of a consulting actuary under section 48;"ranking" means a ranking calculated under section 21;"refined sugar" means sugar with a polarisation of 99.7 or more;"refiner" means a miller or another entity, having the Trust or any other vehicle established to foster equity participation of planters and employees of the sugar industry as a shareholder and mandated by the Syndicate to optimise value added for the whole of the sugar industry through the production of refined sugar;"refinery" means a site where plantation white sugar is processed into refined sugar;"refining" means the process by which plantation white sugar is converted into refined sugar;"register" means the register referred to in section 43;"registered" means registered with the Board under section 40;"Reinsurance Fund" means the fund referred to in section 20A;"shortfall" means the insurable sugar of an insured in an event year less the sugar accruing to the insured in that year;"sugar"—(a)means raw sugar with a polarisation of 98.5; and(b)includes white sugar or any other type of sugar converted to raw sugar on the basis of such equivalent as the Minister may, after consultation with the Board, prescribe;"sugar accruing" or "sugar accrued" means—(a)in respect of a planter, the percentage of sugar produced or expected to be produced, from the canes of planters or the métayers, in accordance with section 39 (1) of the Mauritius Cane Industry Authority Act;(b)in respect of a miller, the sugar left to him after giving to planters or métayers the share of sugar accruing to them as set out in paragraph (a);"sugar price" means the price determined under section 47;"Syndicate" means the Mauritius Sugar Syndicate;"total insurable sugar for a prescribed area", in relation to large planters or a growing unit, means the total insurable sugar of all large planters or the growing unit within a prescribed area;"total sugar accrued for a prescribed area", in relation to large planters or a growing unit, means the total sugar accrued of all large planters or the growing unit within a prescribed area;"Trust" has the same meaning as in the Sugar Industry Efficiency Act.[S. 2 amended by s. 3 of Act 42 of 1984 w.e.f. 16 July 1984; s. 3 of Act 21 of 1988 w.e.f. 16 July 1988; s. 3 of Act 44 of 1989 w.e.f. 1 June 1988; s. 12 of Act 17 of 2000 w.e.f. 5 August 2000; s. 3 of Act 7 of 2007 w.e.f. 1 June 2007; s. 44 (a) of Act 14 of 2009 w.e.f. 1 July 2009; s. 65 (7) (a) of Act 40 of 2011 w.e.f. 19 March 2012; s. 3 of Act 1 of 2012 w.e.f. 12 May 2012; s. 12 of Act 15 of 2013 w.e.f. 29 June 2013; s. 13 (2) (a) of Act 5 of 2014 w.e.f. 20 August 2014; s. 50 (a) of Act 9 of 2015 w.e.f. 1 June 2014, s. 67 (1) (a) of Act 11 of 2018 w.e.f. 1 June 2017.]

Part II – The Fund, Board and Committee

3. The Fund and its objects

(1)There is established for the purposes of this Act the Sugar Insurance Fund.
(2)
(3)The objects of the Fund shall be to—
(a)insure the sugar industry against loss due to cyclones, drought, excessive rainfall or fire;
(aa)insure the refiners authorised by the Syndicate to optimise value added for the whole of the sugar industry through the production of refined sugar against loss due to cyclones, drought or excessive rainfall; and
(b)carry out such activities relating to agriculture or insurance as the Board may determine.
(4)The Board may enter into an insurance contract with a refiner in respect of the production of refined sugar.
[S. 3 amended by s. 5 of Act 42 of 1984 w.e.f. 16 July 1984; s. 3 of Act 44 of 1989 w.e.f. 1 June 1988; s. 44 (b) of Act 14 of 2009 w.e.f. 1 July 2009.]

4. The Board

(1)The Fund shall be administered by a Board to be known as the Sugar Insurance Fund Board.
(2)The Board shall be a body corporate.

5. Constitution of Board

(1)The Board shall consist of—
(a)a Chairperson, to be appointed by the Minister on such terms and conditions as the Minister may determine;
(b)the supervising officer of the Ministry responsible for the subject of agriculture or his representative;
(c)the Financial Secretary or his representative;
(d)the Director of the Control and Arbitration Department of the Mauritius Cane Industry Authority;
(e)
(f)a representative of the Chamber of Agriculture;
(g)4 representatives of planters;
(h)a representative of millers;
(i)a representative of the Mauritius Cane Industry Authority.
(2)The Directors specified in subsection (1) (f), (g) and (h) shall—
(a)be appointed or designated by the Minister, as the case may be; and
(b)hold and vacate office on such terms as the Minister may deter­mine.
(3)Every Director shall be paid such allowance as the Minister may de­termine.
[S. 5 amended by s. 4 of Act 42 of 1984 w.e.f. 16 July 1984; s. 4 of Act 21 of 1988 w.e.f. 16 July 1988; s. 3 of Act 44 of 1989 w.e.f. 1 June 1988; s. 4 of Act 7 of 2007 w.e.f. 2 June 2007; s. 65 (7) (b) of Act 40 of 2011 w.e.f. 19 March 2012.]

6. Quorum

At a meeting of the Board, 5 members shall constitute a quorum.

7. ***

8. Execution of documents

(1)Subject to subsection (2), no document and no cheque drawn on a banking account shall be executed by or on behalf of the Board unless it is signed by—
(a)the Chairperson or, in his absence, a member designated for the purpose by the Board; and
(b)the General Manager.
(2)A document to which the Board is a party may be signed outside Mauritius by a person nominated for the purpose by the Board.
[S. 8 amended by s. 4 of Act 42 of 1984 w.e.f. 16 July 1984; s. 54(a) of Act 18 of 2016 w.e.f. 28 April 2016.]

9. Attendance of experts

A party to any proceedings before the Board may be assisted by Counsel or technical experts.

10. Investment Committee

(1)There is established for the purposes of this Act an Investment Committee which shall be presided over by the Chairperson of the Board and shall consist of—
(a)an ex officio member who shall be Deputy Chairperson;
(b)the member referred to in section 5 (1) (f);
(c)one other member to be elected by the Board for such term of office as the Board may determine.
(2)Decisions of the Committee shall be taken by a majority of the members present and voting at that meeting and, in the event of an equality of votes, the Chairperson shall have a casting vote.
(3)The quorum of the Committee shall be 3.
[S. 10 amended by s. 5 of Act 21 of 1988 w.e.f. 16 July 1988; s. 54 (a) of Act 18 of 2016 w.e.f. 28 April 2016.]

11. ***

[S. 11 repealed by s. 5 of Act 7 of 2007 w.e.f. 2 June 2007.]

Part III – Staff of Board

12. General Manager

(1)The Board shall, with the approval of the Minister, appoint a General Manager who shall be the chief executive officer of the Board.
(2)The General Manager shall be responsible for the execution of the policy of the Board and for the control and management of its day-to-day business.
(3)In the discharge of his functions, the General Manager shall act in accordance with such directions as he may receive from the Board.
[S. 12 amended by Act 42 of 1984.]

13. Appointment of staff

(1)The Board may appoint on such terms and conditions as it may, with the approval of the Minister, determine, such officers and employees as may be reasonably necessary for the purposes of or in connection with the discharge of its functions.
(2)All officers and employees shall be under the administrative control of the General Manager.
[S. 13 amended by Act 42 of 1984.]

14. Delegation of powers

(1)Subject to such general or specific instructions and rules of a general nature as may be given or made by the Board, the Board may delegate to the General Manager such of its powers as may be necessary to enable him to effectively perform his duties.
(2)The General Manager may, with the approval of the Minister, delegate any of his functions to such officers as he may determine.
[S. 14 amended by Act 42 of 1984.]

15. Conditions of service of staff

The Board may, with the approval of the Minister, make such rules as it thinks fit to govern the conditions of service of its officers and employees and, in particular, to deal with—
(a)the appointment, dismissal, discipline, pay and leave of, and the security to be given by, officers and employees;
(b)appeals by officers and employees against dismissal and other disciplinary measures;
(c)the establishment and maintenance of provident and pension fund schemes and the contributions payable and the benefits recoverable.

Part IV – Financial provisions

16. Administrative expenses

Subject to section 20 (2) (b), the expenses of administering the Fund shall be defrayed out of the assets of the Fund.

17. Investment of assets of Fund

The Board may, on the recommendation of the Committee, invest any money forming part of the assets of the Fund which is not required to meet the liabilities of the Fund.[S. 17 repealed and replaced by s. 6 of Act 7 of 2007.]

18. Loans by Board

The Board may, on the recommendation of the Committee and with the approval of the Minister
(a)borrow in such manner, on such terms and at such rate as it considers reasonable, any sum necessary to enable the Fund to meet its liabilities; and
(b)give the assets of the Fund by way of security for such loans.

18A. Loans granted by Board

(1)The Board may, on the recommendation of the Committee, grant loans to the Syndicate in such sum and on such terms and conditions as the Board may approve.
(2)Any sum granted and not reimbursed immediately before the commencement of subsection (1) shall be deemed to have been approved by the Board.
[S. 18A inserted by Act 11 of 2018 w.e.f. 9 August 2018.]

19. General Insurance, Fire Insurance and Bulk Sugar Insurance Account

(1)The Fund shall set up and operate—
(a)a General Insurance Account;
(b)a Fire Insurance Account; and
(c)a Bulk Sugar Insurance Account.
(2)The General Insurance Account shall consist of—
(a)
(b)all general insurance premiums; and
(c)such other sums as may accrue to it.
(3)The Fire Insurance Account shall consist of—
(a)
(b)all fire insurance premiums; and
(c)such other sums as may accrue to it.
(4)The Bulk Sugar Insurance Account shall consist of—
(a)an amount not exceeding 25 million rupees transferred to it from the General Insurance Account;
(b)all bulk sugar insurance premiums; and
(c)such other sums as may accrue to it.
[S. 19 amended by Act 21 of 1988; Act 42 of 1984; Act 44 of 1989.]

20. Reserve Fund

(1)The Board shall maintain a Reserve Fund which shall consist of—
(a)
(b)such sums as the Minister may direct to be credited from the General Insurance Account and the Fire Insurance Account; and
(c)the amount of any special duty leviable under section 50 (1).
(2)No drawing shall be made from the Reserve Fund except—
(a)to provide compensation payable in respect of loss in excess of 35 per cent where the overall loss in production in any crop year exceeds 35 per cent of the total amount of insurable sugar for that crop year; or
(b)to meet expenditure incurred for the insurance of any liability payable out of the Fund.

20A. Reinsurance Fund

(1)The Board shall set up a Reinsurance Fund which shall consist of—
(a)such sums as the Board may, with the approval of the Minister, decide to be credited from the General Insurance Account and the Fire Insurance Account; and
(b)the amount of any special duty leviable under section 50 (1).
(2)The Board may insure against its liabilities to pay compensation under this Act or effect such insurance in such manner as may be necessary.
(3)All premiums in respect of any participation by the Board in reinsur­ance treaties and such claims as may be payable to the General Insurance Account shall be met from the Reinsurance Fund.
[S. 20A inserted by Act 44 of 1989.]

Part V – General insurance

21. Assignment of ranking

(1)The Board shall, in respect of every crop year, assign a ranking to every insured.
(2)Subject to subsections (3) and (4) and section 41, the ranking shall be calculated according to the formula set out in the First Schedule and the result reduced to the next lower multiple of 0.1.
(3)Where the records of the Board are insufficient to enable it to calcu­late the ranking of a large planter or growing unit in accordance with subsec­tion (2), the Board shall assign the ranking on such information as it has available.
(4)Where the ranking of an insured is less than 5, or exceeds 15, in any crop year, his ranking
(a)shall be deemed to be 5 or 15, as the case may be, for the pur­poses of determining the premium percentage and the value per­centage set out in the second and third columns of the Second Schedule respectively; and
(b)shall, for the following crop year, be calculated by reference to the ranking referred to in paragraph (a).
(5)
[S. 21 amended by s. 7 of Act 7 of 2007 w.e.f. 1 June 2006; s. 4 of Act 1 of 2012 w.e.f. 12 May 2012; s. 67 (c) of Act 11 of 2018 w.e.f. 1 June 2017.]

22. Insurable sugar of a large planter or growing unit

(1)
(a)Subject to subsections (2) and (3) and section 27, the insurable sugar of a large planter or growing unit in respect of a cane plantation shall be determined by the Board, and shall be the percentage, described in section 2 in paragraph (a) of the definition of "sugar accruing" or "sugar accrued" of the product of the weighted average sugar yield per hectare for the normal years on that cane plantation and the number of hectares to be harvested.
(b)For the purpose of determining, in the case of changes in the acreage of a plantation, the insurable sugar per hectare of a planter in any year—
(i)any additional acreage taken over and harvested in that year shall be deemed to have formed part of that plantation during the preceding 8 crop years; and
(ii)any acreage by which a plantation has been reduced shall be deemed not to have formed part of that plantation during the preceding 8 crop years.
(2)
(a)Where the Board is satisfied that the area or yield records of a cane plantation registered by a large planter or growing unit are not adequate or reliable in respect of any one of the normal years, it shall assess the weighted average sugar yield per hectare of that cane plantation by refer­ence to the weighted average sugar yield per hectare for the other normal years for which adequate and reliable area or yield records are available.
(b)Where the Board is satisfied that no adequate and reliable area or yield records are available for a cane plantation in respect of any of the normal years, it shall assess the average sugar yield per hectare which the cane plantation can be expected to yield on such information as it has available.
(2A)Notwithstanding section 33, where the Board is satisfied that canes harvested from a cane plantation registered in the name of a large planter have in good faith been sent to be milled under the name of any other large planter in respect of any crop year, the Board may, for the purpose of assessment of premium and compensation, determine the insurable sugar of each account by apportioning the total insurable sugar of the accounts of all the large planters concerned with respect to the sugar accrued to each amount.
(3)The Board may, where it is satisfied that the average sugar yield per hectare of a cane plantation in a crop year has been so substantially increased in relation to the most recent normal years as a result of overhead irrigation or the clearance of stones or through common management practices that a determination under subsection (1) will not give the true average sugar yield per hectare of that cane plantation, assess the insurable sugar per hectare of that cane plantation for that crop year by reference to—
(a)its average sugar yield per hectare in the most recent of the normal years; or
(b)its weighted average sugar yield per hectare in the 2 most recent of the normal years.
[S. 22 amended by Act 42 of 1984; Act 44 of 1989; Act 1 of 1993; Act 17 of 2000; s. 8 of Act 7 of 2007 w.e.f. 1 June 2006; s. 67 (d) of Act 11 of 2018 w.e.f. 1 June 2017.]

23. Insurable sugar of a miller

The insurable sugar of a miller shall be calculated in accordance with the formula set out in the Fourth Schedule.[S. 23 amended by Act 42 of 1984; Act 44 of 1989.]

24. General insurance premium

(1)Every insured shall, in respect of the harvest of every crop year, contribute to the General Insurance Account an annual general insurance premium determined by the Board in accordance with subsection (6).
(2)Where it is not possible for the Board to determine the general insurance premium by 31 December, the Board may make a provisional estimate of the amount payable.
(3)The Syndicate shall, at the request of the Board, and without incur­ring any liability to any person, pay the general insurance premium or the estimate made under subsection (2) to the Board not later than 31 December in respect of the crop year for which it is payable.
(4)The difference between the general insurance premium and the provi­sional estimate made under subsection (2) shall be recovered—
(a)through the Syndicate on or before 30 April of the crop year for which the premium is payable; or
(b)from the insured after 30 April.
(5)Where the provisional estimate made under subsection (2) exceeds the general insurance premium, the excess shall be credited to the insured's general insurance premium for the following year.
(6)
(a)The general insurance premium shall be a percentage of the value of the insurable sugar of the insured for the crop year for which the premium is payable and shall be calculated to the nearest rupee.
(b)The general insurance premium shall be determined by reference—
(i)to the weight and value of insurable sugar of the insured; and
(ii)to the premium percentage set out in the second column of the Second Schedule opposite the ranking assigned to the insured in respect of the crop year for which the premium is payable.
(c)The general insurance premium payable shall be shared, in respect of cane plantations of a métayer, between the métayer and the owner of the land in the proportion of their respective shares of sugar.
(d)The general insurance premium payable shall be shared, in re­spect of cane plantations of a growing unit among the planters and métayers in the growing unit in the proportion of their respective area harvested.
[S. 24 amended by Act 21 of 1988; s. 67 (e) of Act 11 of 2018 w.e.f. 1 June 2017.]

25. Declaration of event year

(1)Where, in any crop year, the total sugar accrued for a prescribed area is not more than the prescribed percentage of the total insurable sugar for the prescribed area on account of the occurrence of all or any of the follow­ing events—
(a)cyclone;
(b)drought; or
(c)excessive rainfall,
the Board may, not later than 28 February following that crop year, declare that crop year to be an event year on account of all or any of those events.
(2)
(3)Any declaration under subsection (1) shall be published in the Gazette and in at least 2 daily newspapers.
(4)Where no declaration under subsection (1) is made, an insured may, in writing and not later than 31 May in the following crop year, request the Board to make a declaration.
(5)Where a request for a declaration is made under subsection (4), the Board shall, not later than 15 July in the crop year following the crop year referred to in subsection (4), or such later date as the Board may by regula­tions appoint, make a declaration or refuse to make it.
(6)Where the Board refuses to make a declaration under subsection (1), following a request under subsection (4), it shall give notification, in writing, of its refusal to the insured.
(7)
[S. 25 amended by Act 42 of 1984; Act 21 of 1988; repealed and replaced by s. 5 of Act 1 of 2012 w.e.f. 12 May 2012; s. 50 (b) of Act 9 of 2015 w.e.f. 1 June 2014.]

25A. Prescribed area and prescribed percentage of total insurable sugar

For the purpose of section 25 (1) of the Act—
(a)the area prescribed for computing the total sugar accrued shall be—
(i)subject to section 22 (2A), the extents under cane of all large planters in any enlarged factory area; or
(ii)the extents under cane of the growing unit in any enlarged factory area; and
(b)the prescribed percentage of the total insurable sugar shall be 80 per cent.
[S. 25A inserted by s. 67 (f) of Act 11 of 2018 w.e.f. 1 June 2017.]

26. Assessment of compensation

(1)Subject to subsection (4) and sections 28, 32 and 33, where an event year has been declared, every insured within the prescribed area shall be eligible for compensation on the shortfall due to any cyclone, drought or excessive rainfall.
(2)The Board shall determine the amount of compensation payable to an insured by reference to—
(a)the sugar price at which general insurance premium was paid for the relevant crop year; and
(b)the value percentage set out in the fourth column of the Second Schedule opposite the ranking assigned to the insured.
(3)Compensation under subsection (2) shall be calculated to the nearest rupee and payable in such instalments as the Board may determine.
(4)Where a registered planter has the majority or controlling interest in a cane plantation registered in the name of another person, any compensation payable in respect of that cane plantation shall, for the purpose of subsec­tion (1), be assessed and paid to the registered planter who holds the majority or controlling interest in the cane plantation as if it were part of the other cane plantations registered in his name.
(5)Where a person holds the majority or controlling interest in some plantations registered in the name of 2 or more different planters in the same factory area, any compensation payable in respect of these plantations shall, for the purpose of subsection (1), be assessed as if he were the registered owner of all these plantations and shall be paid to the registered planters in proportion to the harvested acreage of each of these registered plantations.
(6)The Board may deduct, from any money payable to an insured by way of compensation, any sum—
(a)due to the Board in respect of a general insurance premium pay­able by the insured; and
(b)unduly paid by way of compensation to the insured in respect of a previous crop year.
(7)Notwithstanding subsections (1) and (2) and subject to subsection (8) where a cane plantation has been partly or totally destroyed by any cyclone, drought or excessive rainfall, compensation net of premium on the extent destroyed shall be payable in respect of—
(a)such prescribed area as the Board may determine; and
(b)each tonne of insurable sugar short produced at such rate as the Board may determine and as the Minister may approve.
(8)For the purpose of subsection (7), the insurable sugar short produced shall be determined by reference to section 22 and shall not be aggregated with the total insurable sugar determined under section 23.
(9)Where the destroyed plantation is under the system of métayage, the compensation payable under subsection (7) shall be apportioned between the métayer and the owner of the land in the proportion of their respective shares of sugar.
(10)The compensation net of premium on the extent destroyed shall be shared, in respect of cane plantations of a growing unit, among the planters and métayers in the growing unit in the proportion of their respective extent destroyed.
[S. 26 amended by Act 36 of 1991; s. 6 of Act 1 of 2012 w.e.f. 12 May 2012; s. 50 (c) of Act 9 of 2015 w.e.f. 1 June 2014; s. 67 (g) of Act 11 of 2018 w.e.f. 1 June 2017.]

27. Reduction of compensation

(1)Notwithstanding section 26, and subject to sections 32 and 33, where the Board is satisfied that any part of the loss in the sugar yield of a planter or a métayer is attributable to causes other than cyclones, drought or excessive rainfall, the Board may, in respect of the loss due to cyclones, drought or excessive rainfall, pay compensation determined by reference to the amount of insurable sugar calculated in accordance with the formula set out in the Third Schedule.
(2)
[S. 27 amended by Act 1 of 1993; s. 9 of Act 7 of 2007; s. 7 of Act 1 of 2012 w.e.f. 12 May 2012.]

28. Payments out of General Insurance Account

(1)Subject to subsection (2), the Board shall, in accordance with any arrangement which it may approve for the purpose of this section, but subject to sections 25, 26 and 27, pay to the insured compensation out of the General Insurance Account.
(2)The Board may pay the compensation to the Syndicate for distribution to the insured through his broker or other representative authorised by him to receive from the Syndicate payment of the proceeds of the sale of his sugar.
(3)For the purpose of subsection (2), a broker or other representative shall be deemed to have been authorised to receive payments from the Syn­dicate in respect of any crop year by an insured who has consigned to the broker or other representative, as the case may be, the sugar accruing in that crop year to the insured.
(4)Notwithstanding subsections (2) and (3), the Syndicate may pay the compensation directly to the insured where the insured has so opted at the time of registration.
(5)Compensation payable in any crop year in respect of a factory or cane plantation with respect to which there has been a change in ownership after registration under section 40 shall, in the absence of a notification under section 41 (1), be paid, in respect of—
(a)a factory, to the miller who operated the factory; and
(b)a cane plantation, the planter in whose name the canes were supplied.
(5A)Notwithstanding subsection (5), compensation payable in any crop year in respect of a cane plantation in relation to which there has been a change in ownership under section 41, may, in the absence of a notification under section 41 (1), be withheld by the Board for such period as it may determine.
(6)Any compensation payable shall be shared, in respect of the cane plantations of a métayer, between the métayer and the owner of the land in the same proportion as the premium under section 24 (6) (c).
(7)The compensation payable shall be shared, in respect of cane planta­tions of a growing unit, among the planters and métayers in the growing unit in the proportion of their respective area harvested.
[S. 28 amended by Act 42 of 1984; Act 21 of 1988; s. 8 of Act 1 of 2012 w.e.f. 12 May 2012; s. 13 (2) (b) of Act 5 of 2014 w.e.f. 20 August 2014; s. 67 (h) of Act 11 of 2018 w.e.f. 1 June 2017.]

29. Limitation of compensation

Where the net amount standing to the credit of the General Insurance Ac­count estimated as at 31 May is insufficient to meet the liabilities of the General Insurance Account in respect of losses incurred in an event year un­der this Part, the Minister may, by regulations published in the Gazette and in 2 daily newspapers, direct that compensation assessed in accordance with section 26 or 27 shall be reduced by such percentage as shall ensure that the compensation payable shall not, in the aggregate, exceed the net amount standing to the credit of the General Insurance Account.

30. Advances to an insured

(1)Subject to subsections (2) and (3), the Board may make advances to an insured eligible to compensation under section 26 on such conditions as the Board may determine.
(2)The advances made under subsection (1) shall in the aggregate not exceed 80 per cent of the loss suffered or likely to be suffered by the insured.
(3)The Board may, for the purposes of subsection (1), and without prej­udice to any assessment which is required to be made under this Act for the payment of compensation, assess the loss suffered by an insured in such manner as it thinks fit.
[S. 30 amended by Act 36 of 1991; s. 10 of Act 7 of 2007.]

31. ***

32. Bar to claim

(1)Where the Board is satisfied that the cultivation and maintenance of cane plantations have been neglected before or after the occurrence of a cyclone or drought or excessive rainfall, the Board may refuse to pay compensation in respect of those cane plantations or may reduce the compensation payable to such amount as it thinks fit.
(2)The Board shall not consider any claim by an insured for compensa­tion or for re-assessment of compensation in respect of the loss suffered by the insured in any crop year unless—
(a)the claim is lodged in writing with the Board within 9 months of the date on which the crop year was declared an event year or within 3 months of an order of the Supreme Court declaring or ordering the Board to declare an event year;
(b)in the case of a planter or métayer, his cane plantations have been registered;
(c)section 40 (2C) has been complied with.
[S. 32 amended by s. 11 of Act 7 of 2007 w.e.f. 1 June 2006; s. 9 of Act 1 of 2012 w.e.f. 12 May 2012.]

33. Forfeiture of compensation

Where the Board is satisfied that a planter or métayer
(a)has, under his name, sold or disposed of canes harvested from cane plantations other than those registered in his name in respect of any crop year; or
(b)has sold or disposed of any of the canes harvested from cane plantations, registered in his name, under a fictitious name or to any person other than a person to whom he is authorised to sell or dispose of his canes under the Mauritius Cane Industry Au­thority Act 2011,
it shall not pay to the planter any compensation to which he may have been entitled for that crop year.[S. 33 amended by s. 12 of Act 7 of 2007 w.e.f. 2 June 2007; s. 65 (7) (c) of Act 40 of 2011 w.e.f. 19 March 2012.]

33A. Insurance of refiners

(1)No refiner shall be insured under this section unless it holds—
(a)a certificate from the Mauritius Sugar Authority witnessing its shareholding structure; and
(b)a certificate from the Syndicate witnessing its authorisation to produce refined sugar for the optimization of value added for the whole of the sugar industry.
(2)Subject to subsection (3), the insurance of a refiner shall be governed by an insurance contract entered into between the Board and the refiner.
(3)An insurance contract shall be for an initial duration of 6 years, com­mencing on 1 July 2009 and ending on 30 June 2015.
(4)Wherever applicable, the terms and conditions of an insurance con­tract shall have regard to the provisions of Part V, in particular, those relating to ranking and insurable sugar and to the First and Second Schedules.
(5)A refiner and the Syndicate shall furnish such information pertaining to this section as may be required by the Board.
(6)A dispute under an insurance contract shall, in the first instance, be referred to arbitration as governed by rules on contracts.
(7)Where arbitration fails to resolve a dispute, the contracting parties may have recourse to the Supreme Court in accordance with any rules made by the Chief Justice.
[S. 33A inserted by s. 44 (c) of Act 14 of 2009 w.e.f. 1 July 2009.]

Part VI – Fire insurance

34. Fire insurance premium

(1)Every insured shall, in respect of the harvest of each crop year, con­tribute to the Fire Insurance Account an annual fire insurance premium in accordance with the Fifth Schedule.
(2)The Syndicate shall, at the request of the Board and without any lia­bility to any person, pay the fire insurance premium to the Board not later than 31 December in respect of the crop year for which it is payable.
[S. 34 amended by s. 10 of Act 42 of 1984 w.e.f. 16 July 1984; repealed and replaced by s.10 of Act 44 of 1989 w.e.f. 1 June 1988; amended by s. 67 (i) of Act 11 of 2018 w.e.f. 1 June 2017.]

35. Report of fire

(1)Not later than 10 days after a cane plantation has been damaged by fire, the planter or métayer in whose name the cane plantation is registered shall notify the Board of the fact by registered letter.
(2)The notification sent to the Board under subsection (1) shall set out—
(a)the date, time and place of the fire;
(b)the area of the cane plantation destroyed; and
(c)the category and variety of canes destroyed.
[S. 35 amended by s. 13 of Act 7 of 2007.]

36. Inspection of plantation after damage by fire

(1)On receipt of a notification under section 35 (1), the Board shall cause the cane plantation to be inspected for the purpose of—
(a)ascertaining the extent of any damage, in terms of the tonnage of canes which would have been harvested in that crop year but for such fire; and
(b)determining the cause of fire.
(2)Every insured shall give full assistance to the Board's officer in the carrying out of the inspection.

37. Compensation for loss by fire

(1)
(a)Every insured who has suffered loss as a result of fire shall be en­titled to compensation at the rate set out in the Fifth Schedule to this Act.
(b)A planter or métayer whose cane plantations have been burnt while the factory in his enlarged factory area is not in operation shall be enti­tled to a transport allowance at such rate as the Board may determine for all canes transported over a distance exceeding 6.4 kilometres to a factory or cane transit site, whichever is applicable, in another enlarged factory area.
(2)No compensation shall be paid—
(a)where the Board is satisfied that the fire was deliberately set by the insured or his agent to the cane plantation with a view to obtaining compensation;
(b)in respect of canes which were not due to be harvested in the crop year during which the fire occurred;
(c)where the burnt canes can be harvested and milled at a factory in the enlarged factory area of the cane plantation with the burnt canes;
(d)where an insured fails to comply with section 35 or 36 (2); or
(e)where the Board is satisfied that it is economically viable for the insured to harvest and mill the burnt canes at a factory outside the enlarged factory area of the cane plantation with the burnt canes.
(3)In this section—"cane transit site" has the same meaning as in section 40 of the Mau­ritius Cane Industry Authority Act.
[S. 37 amended by Act 42 of 1984; Act 44 of 1989; s. 14 of Act 7 of 2007; s. 50 (d) of Act 9 of 2015 w.e.f. 1 June 2014; s. 67 (j) of Act 11 of 2018 w.e.f. 11 December 2017.]

38. Compensation met by Fire Insurance Account

(1)Compensation under section 37 shall be paid out of the Fire Insurance Account.
(2)Where the net amount standing to the credit of the Fire Insurance Account estimated as at 31 May is insufficient to meet the liabilities of the Fire Insurance Account in respect of fire losses, the Minister may, by regula­tions published in the Gazette and in 2 daily newspapers, direct that com­pensation assessed in accordance with section 37 shall be reduced by such percentage as shall ensure that the compensation payable shall not, in the aggregate, exceed the net amount standing to the credit of the Fire Insur­ance Account.

39. Where insured ineligible for compensation

Where compensation is paid under this Part to an insured, the insured shall not be eligible for compensation under Part V in respect of the insurable sugar represented by sugar short produced as a result of fire.

39A. Payments out of Bulk Sugar Insurance Account

(1)All compensation, reinsurance premium and other amounts payable in connection with the Bulk Sugar Insurance shall be paid out of the Bulk Sugar Insurance Account.
(2)Any amount in excess of the liabilities of the Bulk Sugar Insurance Account shall, on the advice of the actuaries, be paid into the General Insur­ance Account.
[S. 39A added by s. 12 of Act 42 of 1984 w.e.f. 16 July 1984.]

Part VII – Miscellaneous

40. Registration of factories and plantations

(1)Every miller shall, not later than 31 May, register his factory with the Board and shall furnish, at the time of registration, such information as the Board may require.
(2)Subject to subsection (3), every planter or métayer shall, not later than 31 May, register with the Board all his cane plantations for the follow­ing crop year and shall declare in respect of each cane plantation registered in his name—
(a)the area of land which he has under cane cultivation; and
(b)the area which he intends harvesting during that crop year.
(2A)
(2B)
(2C)Where any change occurs in respect of the area of land which a planter or métayer has under cane cultivation or the area which he intends to harvest during a crop year, the planter or métayer shall inform the Board of the change.
(3)Where a planter or a métayer fails to register his cane plantations un­der subsection (2), he may register his cane plantations with the Board on payment of a late registration fee of 100 rupees, together with a surcharge of 10 rupees for every hectare or part thereof which he intends harvesting on those plantations.
(4)The Board may require a planter or métayer to furnish a certificate signed by a land surveyor in support of any declaration made by him under this section.
(5)Where a husband and wife, married under the system of community of goods and property, own cane plantations, those cane plantations shall be registered in the joint names of the husband and wife.
(6)Cane plantations owned by 2 or more planters in undivided ownership or jointly leased by them shall be registered in their joint names.
[S. 40 amended by s. 12 of Act 44 of 1989 w.e.f. 1 June 1988; s. 15 of Act 7 of 2007 w.e.f. 2 June 2007; s. 10 of Act 1 of 2012 w.e.f. 12 May 2012; s. 56 of Act 10 of 2017 w.e.f. 21 April 2017.]

41. Change of ownership

(1)Every notary public shall, within one month of drawing up a deed witnessing the change in ownership of any factory, refinery or land under sugar cane cultivation, which is registered under section 40, notify the Board in writing of the change, and provide such particulars as the Board may re­quest.
(2)On receipt of a notification under subsection (1), the Board shall—
(a)change the registration in respect of the factory or cane planta­tion from the name of the previous to that of the new owner; and
(b)assign to the new owner, if he has at the time of registration no other cane plantation registered, the ranking which has been or would have been assigned to the previous owner; or
(c)where necessary, adjust the ranking assigned to the previous and new owners.
[S. 41 amended by s. 9 of Act 21 of 1988 w.e.f. 16 July 1988; s. 44 (d) of Act 14 of 2009 w.e.f. 1 July 2007.]

42. Inspection of property

An officer may, on being so directed by the Board for the purposes of this Act—
(a)enter on any land and inspect any cane plantation; and
(b)on the production of his authority, where so required, require the production, by the owner of a cane plantation or his representa­tive or by any other person, of any book, register or document which, in his opinion, is likely to contain any matter which will enable the Board to exercise his duties under this Act.

43. Survey of plantations

(1)
(a)The Board shall keep a register in which shall be entered the area of the cane plantations of every planter or métayer.
(b)The Board may, on evidence being adduced to its satisfaction that an entry in the register is incorrect, cause the entry to be rectified.
(2)Notwithstanding the Land Surveyors Act, the Board may cause the area of a cane plantation to be ascertained by an officer or by a land survey­or, and the area so ascertained shall, for the purposes of this Act, be deemed to be the correct area and shall be entered by the Board as the area of the cane plantation in the register.
[S. 43 amended by s. 16 of Act 7 of 2007 w.e.f. 2 June 2007.]

44. Special privilege

(1)The Board shall have a special privilege ranking before any other privi­lege conferred under any enactment and operating independently of inscrip­tion, on all sugar deposited in any place in the name of the Syndicate in re­spect of—
(a)any amount due to the Board in respect of a general insurance premium or a fire insurance premium by an insured; and
(b)any amount unduly paid to an insured by the Board by way of compensation for any crop year.
(2)The Syndicate, a co-operative society shall, on a request in writing from the Board and without incurring any liability to the insured, deduct from any money payable to an insured the amount due by or overpaid to him un­der subsection (1) and shall pay that amount to the Board.
[S. 44 amended by s. 11 of Act 1 of 2012 w.e.f. 12 May 2012; s. 13 (2) (c) of Act 5 of 2014 w.e.f. 20 August 2014.]

45. Returns

(1)Every miller, refiner, planter, métayer or cooperative society shall fur­nish in writing to the Board such information within such time and in such manner as may be prescribed.
(2)Every planter or métayer shall, on being so required by the Board, furnish to the cooperative society or miller to whom he sold his canes such information within such time and in such manner as may be prescribed.
(3)The Board may call for such other information from any person as it may reasonably require for the purposes of this Act.
(4)Any compensation which may be payable under this Act may be withheld by the Board until this section is complied with.
[S. 45 amended by s. 17 of Act 7 of 2007 w.e.f. 2 June 2007; s. 44 (e) of Act 14 of 2009 w.e.f. 1 July 2009; s. 13 (2) (d) of Act 5 of 2014 w.e.f. 20 August 2014.]

46. ***

47. Sugar price

(1)The Minister shall, on or before 31 December in any crop year, after consultation with the Mauritius Sugar Authority, determine the sugar price, applicable to any specified class of insured, at which insurable sugar shall be valued for that crop year in respect of that particular class of insured.
(2)The sugar price determined under subsection (1) shall be—
(a)the price per ton of sugar, inclusive of the value of the molasses by-product associated with each ton of sugar;
(b)expressed to the nearest rupee; and
(c)published in the Gazette and in 2 daily newspapers.
[S. 47 amended by s. 13 of Act 42 of 1984 w.e.f. 16 July 1984; s. 6 of Act 36 of 1988 w.e.f. 10 December 1988.]

48. Consulting actuary

(1)The Board shall, with the approval of the Minister, appoint a consult­ing actuary who shall, at least once every 5 years, review the position of the Fund and make such recommendations to the Board as he considers neces­sary and who shall advise the Board on any change to be made to—
(a)the percentages laid down in the Second Schedule;
(b)the method of determining ranking and the value of insurable sugar;
(c)the prescribed area and the prescribed percentage of the total insurable sugar for the purpose of the declaration of an event year under section 25.
(2)The recommendations under subsection (1) may include the defining of such prescribed area and such prescribed percentage of the total insurable sugar as the consulting actuary may deem appropriate.
[S. 48 amended by s. 12 of Act 1 of 2012 w.e.f. 12 May 2012.]

49. Recommendations made by Board

The Board shall consider any recommendation made and advice given by the consulting actuary under section 48 and shall make such recommenda­tions to the Minister as it considers appropriate.[S. 49 inserted by s. 13 of Act 1 of 2012 w.e.f. 12 May 2012.]

50. Special duty

(1)Where the Minister is of opinion that the selling price of sugar in any crop year so justifies, he may, by regulations, levy a special duty on all in­surable sugar, or on all sugar accrued, in that crop year.
(2)The Syndicate shall, at the request of the Board and without incurring any liability to any person, pay the special duty levied under subsection (1) to the Board in such manner and at such times as the Board may direct.

51. Reduced premiums for groups of planters and métayers

(1)The Minister may, by regulations, declare that planters or métayers shall, for the purpose of this section, be grouped by reference to the size or geographical location of their plantations or such other criteria as the Minis­ter may determine.
(2)Planters and métayers grouped under subsection (1) shall pay such reduced general insurance premium as may be specified in the regulations.
(3)Where planters and métayers who are grouped are authorised under subsection (2) to pay the reduced general premiums, there shall be paid from the Consolidated Fund into the General Insurance Account the difference be­tween the General Insurance premiums payable under section 24 by such planters or métayers and the reduced premium authorised under subsection (2).
(4)Notwithstanding any regulations under subsection (1) for the payment of reduced general insurance premium, planters and métayers to whom the regulations apply shall, for the purposes of reinsurance under section 49, be deemed to have paid the full insurance premium.

52. Appeal to Supreme Court

An insured, who is aggrieved by a decision of the Board under section 22, 23, 25, 26, 27, 32, 33, 37 or 53 (2), may appeal against the decision to the Supreme Court in such manner as may be provided by rules made by the Su­preme Court.

53. Offences

(1)Any person who—
(a)knowingly makes a declaration required under section 40 or knowingly furnishes information under section 45 which is false in any material particular;
(b)prevents or impedes, or attempts to prevent or impede, any of­ficer from entering any land or from exercising any of his powers under this Act;
(c)fails to comply with any request made by an officer under sec­tion section 42(b); or
(d)otherwise contravenes this Act,
shall commit an offence and shall, on conviction, be liable to a fine not exceeding 1,000 rupees and to imprisonment for a term not exceeding 12 months.
(2)Where a planter or métayer has been convicted of an offence under subsection (1) (b), the Board may withhold any compensation payable to him.

54. Burden of proof

In any proceedings—
(a)by an insured against a decision of the Board under section 32(1), the onus of proving that the cultivation and mainte­nance of the cane plantations had not been neglected; or
(b)by an insured dissatisfied with the assessment made by the Board under section 26, the onus of proving that the basis on which the assessment was made is incorrect,
shall lie on the insured.

55. Regulations made by Minister

(1)The Minister may, by regulations—
(a)amend the Schedules to give effect to any recommendation which the Board may make following the advice of the consult­ing actuary;
(b)give effect to any recommendation made by the Board under section 49.
(2)Regulations made under subsection (1) shall be published in the Gazette and in 2 daily newspapers.
[S. 55 repealed and replaced by s. 14 of Act 1 of 2012 w.e.f. 12 May 2012.]

56. Regulations made by Board

The Board may make such regulations as it thinks fit for the purposes of this Act.[S. 56 amended by s. 15 of Act 1 of 2012 w.e.f. 12 May 2012.]

57. Transitional provision

(1)
(2)Notwithstanding section 3 (3) (a), the Board shall, subject to subsec­tions (3) and (4), pay a one-off financial assistance to an insured for the crop year beginning on 1 June 2014 and ending on 31 May 2015 amounting to a sum of 2,000 rupees per tonne of his sugar accrued or part thereof, or any compensation payable under the General Insurance Account to that insured for that crop year.
(3)
(a)Where an insured is not eligible to a compensation under the Gen­eral Insurance Account, he shall be paid a one-off financial assistance amount­ing to a sum of 2,000 rupees per tonne of his sugar accrued or part thereof.
(b)Where an insured is eligible to a compensation under the General Insurance Account of an amount equivalent to—
(i)less than 2,000 rupees per tonne of his sugar accrued or part thereof, he shall be paid a one-off financial assistance amounting to the difference between the sum of 2,000 ru­pees per tonne of his sugar accrued or part thereof and the amount of the compensation payable;
(ii)2,000 rupees or more per tonne of his sugar accrued or part thereof, no financial assistance shall be payable.
(4)Any one-off financial assistance payable shall be shared, in respect of the cane plantations of a métayer, between the métayer and the owner of the land in the same proportion as determined in relation to the general in­surance premium under section 24 (6) (c).
(5)Notwithstanding section 3 (3) (a), the Board shall, subject to subsec­tion (4), pay a one-off financial assistance to an insured in respect of crop year beginning on 1 June 2016 and ending on 31 May 2017 amounting to a sum of 1,250 rupees per tonne of sugar accrued or part thereof.
[S. 57 inserted by s. 50 (e) of Act 9 of 2015 w.e.f. 23 March 2015; amended by s. 54 (c) of Act 18 of 2016 w.e.f. 28 April 2016; s. 67 (k) of Act 11 of 2018 w.e.f. 1 June 2017.]

First Schedule (Section 21)

where—R2 is the ranking to be calculated for any crop year;R1 is the ranking for the year previous to that for which ranking R2 is being calculated;C is the compensation if any, other than for loss by fire paid in the year previ­ous to that for which ranking R2 is being calculated;is the general insurance premium paid in the year previous to that for which ranking R2 is being calculated.For the crop year beginning on 1 June 2015 and ending on 31 May 2016, R2 shall be equal to R1.[First Sch. amended by Act 42 of 1984; GN 94 of 2007 w.e.f. 1 June 2006; GN 157 of 2015 w.e.f. 8 August 2015; GN 24 of 2017 w.e.f. 11 February 2017.]

Second Schedule (Sections 2, 21, 24, 26 and 48)

RankingPremium percentage of value of insurable sugarValue percentage (of shortfall)
5.04.4044.20
5.14.3944.45
5.24.3844.70
5.34.3744.95
5.44.3645.20
5.54.3545.45
5.64.3445.70
5.74.3345.96
5.84.3246.21
5.94.3146.47
6.04.3046.72
6.14.2947.01
6.24.2847.29
6.34.2747.58
6.44.2647.87
6.54.2548.16
6.64.2448.45
6.74.2348.74
6.84.2249.03
6.94.2149.33
7.04.2049.62
7.14.1949.91
7.24.1850.21
7.34.1750.51
7.44.1650.80
7.54.1551.10
7.64.1451.40
7.74.1351.70
7.84.1252.00
7.94.1152.30
8.04.1052.60
8.14.0952.84
8.24.0853.08
8.34.0753.33
8.44.0653.57
8.54.0553.82
8.64.0454.06
8.74.0354.30
8.84.0254.55
8.94.0154.79
9.04.0055.04
9.13.9955.38
9.23.9755.72
9.33.9656.06
9.43.9456.40
9.53.9356.74
9.63.9157.08
9.73.9057.42
9.83.8857.76
9.93.8758.11
10.03.8558.45
10.13.8458.79
10.23.8259.14
10.33.8159.48
10.43.7959.83
10.53.7860.18
10.63.7660.52
10.73.7560.87
10.83.7361.22
10.93.7261.57
11.03.7061.92
11.13.6862.27
11.23.6662.62
11.33.6462.90
11.43.6263.26
11.53.6063.54
11.63.5863.89
11.73.5664.17
11.83.5464.53
11.93.5264.81
12.03.5065.17
12.13.4865.45
12.23.4665.81
12.33.4466.09
12.43.4266.45
12.53.4066.73
12.63.3867.09
12.73.3667.37
12.83.3467.73
12.93.3268.02
13.03.3068.37
13.13.2868.66
13.23.2569.02
13.33.2369.30
13.43.2069.67
13.53.1869.95
13.63.1570.31
13.73.1370.60
13.83.1070.96
13.93.0871.25
14.03.0571.61
14.13.0271.90
14.22.9972.26
14.32.9672.55
14.42.9372.92
14.52.9073.20
14.62.8773.57
14.72.8473.86
14.82.8174.22
14.92.7874.51
15.02.7574.80
[Second Sch. amended by s. 14 of Act 42 of 1984 w.e.f. 16 July 1984; GN 169 of 2009 w.e.f. 12 December 2009; GN 236 of 2010 w.e.f. 31 December 2010; GN 208 of 2011 w.e.f. 17 December 2011; repealed and replaced by s. 16 of Act 1 of 2012 w.e.f. 12 May 2012; GN 157 of 2015 w.e.f. 8 August 2015; GN 176 of 2016 w.e.f. 13 August 2016; s. 67 (1) of Act 11 of 2018 w.e.f. 1 June 2017.]

Third Schedule (Section 27)

Planter or métayer
Unadjusted Insurable Sugar of planter or métayer in tonnes=TIS
Sugar accruing to a planter or métayer in tonnes=SA
Proportion of TIS disallowed due to gaps under section 27=Z
Adjusted Insurable Sugar of a planter or métayer in tonnes (ATIS)=TIS (Z x TIS)
Proportion of Adjusted Insurable Sugar disallowed due to weediness and poor fertilisation under section 27=Y
Indemnifiable loss (before application of First Loss)=ATIS - (Y x ATIS) - SA
[Third Sch. amended by Act 1 of 1993; GN 94 of 2007 w.e.f. 1 June 2006; s. 17 of Act 1 of 2012 w.e.f. 12 May 2012.]

Fourth Schedule (Section 23)

WhereTISm = total insurable sugar of miller;TISp = total insurable sugar of planters and métayers in the enlarged factory area;SAp = sugar accruing to planters and métayers in the enlarged factory area;SAm = sugar accruing to miller after giving to planters and métayers the share of sugar accruing to them;Fc = fraction, for the current year, of sugar accruing to miller divided by sugar accruing to planters and métayers;Fa = average of 3 highest out of the immediately preceding 5 years fractions of the sugar accruing to miller divided by sugar accruing to planters and métayers.The component (Fa Fc) x TISp shall be used only where Fa is greater than Fc.[Fourth Sch. added by Act 44 of 1989; amended by GN 94 of 2007 w.e.f. 1 June 2006; s. 18 of Act 1 of 2012 w.e.f. 12 May 2012; s. 50 (f) of Act 9 of 2015 w.e.f. 1 June 2014.]

Fifth Schedule (Sections 34 and 37)

(1)
(a)Premium to be contributed by every planter or métayer to the Fire Insurance Account under section 34 (1) shall be determined according to the premium structure specified hereunder, provided that in respect of lands under métayage, the premium shall be shared between the métayer and the owner of the land in the proportion of their respective share of sugar—
Planter or métayer ClassificationNo Claims Discount LevelDefinitionPremium Discount ApplicablePremium to be contributed per tonne of insurable sugar
Large planterNCD1Large planter who was paid fire compensation in the previous crop year0%27.01
Large planterNCD2Large planter who was not paid fire compensa­tion in the previous crop year, but was paid fire compensation 2 crop years ago20%21.61
Large planterNCD3Large planter who was not paid fire compensa­tion in the last 2 crop years40%16.21
Planter, other than large planter, or métayerNCD1Planter, other than large planter, or métayer who was paid fire compensa­tion in the previous crop year0%34.19
Planter, other than large planter, or métayerNCD2Planter, other than large planter, or métayer who was not paid fire com­pensation in the previous crop year, but was paid fire compensation 2 crop years ago20%27.35
Planter, other than large planter, or métayerNCD3Planter, other than large planter, or métayer who was not paid fire com­pensation in the last 2 crop years40%20.52
(b)Premium to be contributed by every miller to the Fire Insurance Account under section 34 (1) shall be in accordance with the following formula—where tp is the total premium of all planters and métayers in the enlarged factory area.
(2)Compensation to which a planter is entitled for each tonne of cane short produced as a result of fire: 390.00 rupees, provided that in re­spect of lands under métayage the compensation shall be shared be­tween the métayer and the owner of the land in the proportion of their respective share of sugar
(3)Compensation to which a miller is entitled for each tonne of cane short produced from a planter's cane plantations as a result of fire: 110.00 rupees
[Fifth Sch. amended by Act 44 of 1989; GNs 30 of 1998; 198 of 2000; 94 of 2007 w.e.f. 1 June 2006; s. 19 of Act 1 of 2012 w.e.f. 12 May 2012; s. 50 (g) of Act 9 of 2015 w.e.f. 1 June 2013; s. 67 (m) of Act 11 of 2018 w.e.f. 1 June 2017.]
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History of this document

30 June 2017 this version
Consolidation
01 June 1974
Commenced