Korea Rice Crop Insurance Deductible & Payout Calculator

Why rice insurance may pay less than the visible damage suggests

A farmer facing typhoon or heavy-rain damage needs to plan for recovery and the next growing season.
However, the visibly damaged area, the reduction in harvested output and the damage rate recognized by insurance can differ.
Multiplying the policy amount by a visual estimate of damage can overstate the benefit because the policy also applies assessment rules and a deductible.

This calculator uses Korean crop disaster insurance rules for rice grain under NH NongHyup Property & Casualty Insurance’s 2604 terms, checked in 2026.
It covers the yield-reduction benefit for one field and one insurance season, with all money in KRW.
Enter your policy and assessed-loss figures to separate the deductible, gross formula amount and remaining payment after advances.
A neighboring farm’s claim or an online example cannot establish the amount payable under your contract.

Distinguish three amounts before entering data

Insured yield, deductible option and the assessment for each field can produce different results even for farms of similar size.
The comparison holds the sum insured and assessed rate constant across the 10%, 15%, 20%, 30% and 40% deductible options.
It does not assume every farmer can select every option or that the premiums are equal.

The yield-reduction formula

• Recognized loss reference = sum insured × assessed damage rate.
  This is not the farmer’s complete economic loss, recovery spending or living-cost shortfall.
  
• Deductible threshold = sum insured × deductible rate.
  The retained portion of the particular recognized loss is the smaller of that loss and the threshold.
  
• Maximum yield-reduction formula amount = sum insured × (1 − deductible rate).
  This is the mathematical result at a 100% recognized damage rate, not a combined limit for other benefits or expenses.
  

The underlying damage-rate formula is (normal yield − harvested yield − excluded yield loss) ÷ normal yield.
Normal yield is established using the applicable assessment and policy procedures; it is not simply last year’s harvest or the output of a neighboring field.
Harvested yield and excluded yield loss require assessment, including the specific treatment of covered pest losses under the rice coverage provisions.
This tool does not assess those quantities or infer a damage rate from photographs, crop condition or the farmer’s own yield estimate.

Worked example: KRW 20 million insured

Assume a sum insured of KRW 20,000,000, an assessed damage rate of 40% and a deductible rate of 20%.
The loss reference is KRW 8,000,000, the deductible threshold is KRW 4,000,000 and the gross benefit is KRW 4,000,000.
Deducting only 20% of the KRW 8 million loss would produce KRW 6.4 million, which misapplies this policy’s deductible basis.

The 2026 pest-only cap is 70%

The 2026 reform integrated rice pest and disease cover into the main policy.
Rice Coverage Article 6 and Annex 5 of the 2604 terms limit a pest-only damage rate to 70%.

Entering 80% as pest-only damage withholds the result and asks you to verify the final assessed rate.
The policy provides an exception to the 70% limit when another covered loss occurs together with the covered pest damage.
Select mixed loss only when that classification has been confirmed; an uninsured cause or an arbitrary addition of two percentages does not establish the exception.
At KRW 20 million insured with a 20% deductible, confirmed pest-only damage of 70% produces KRW 10 million, while confirmed mixed damage of 80% produces KRW 12 million.

Cases that need another benefit or a separate review

Reconcile advances and the pure-premium multiple

If prior payments are KRW 5 million but the gross estimate is KRW 4 million, the excess to review is KRW 1 million.
The calculator does not determine that the farmer must repay that amount.
First check for mixed benefit types, different fields or seasons, changes to assessed damage or the sum insured, and whether the payment statement uses the same basis.

How to use the worksheet

1. Gather the records: Prepare the policy, applicable terms and endorsements, assessed-loss notice and advance or final payment statement.
   Match the field and season across all records.
   
2. Confirm the scope: Check that the rice grain yield-reduction benefit applies and that there is no termination, early plant-damage exclusion or additional sharing adjustment.
   Leave the status unconfirmed if any of those points is unclear.
   
3. Enter the assessed values: Use the sum insured, final damage rate, confirmed loss cause and policy deductible.
   The damage rate accepts up to four decimals, and equality with the deductible yields zero.
   
4. Reconcile payments: Enter only prior payments for this benefit and the policy’s pure premium.
   Zero pure premium means unavailable and hides the multiple rather than dividing by zero.
   
5. Save the evidence: Export the CSV and discuss differences with the issuing NH office or insurer.
   It records inputs, policy version, conditional results and comparison assumptions; whole-KRW display rounding is a tool convention, not an insurer’s settlement rule.
   

The tool accepts a sum insured of KRW 1,000 to 1 trillion in KRW 1,000 increments, a damage rate from 0% to 100%, and whole-KRW prior payments and pure premium from zero to 1 trillion.
These input limits are technical bounds, not underwriting criteria.
Empty or invalid values withhold results instead of silently becoming zero.

Frequently asked questions