WHAT IS THE ITPP
The In Transit Protection Program (ITPP) is a program created by the Western Hog Exchange
(W.H.E.) to protect producers against in-transit losses.
PARTICIPATION
The ITPP program is a voluntary program. All producers of Alberta animals, sold through facilities of
the W.H.E, automatically participate in the ITPP unless written notice of their
desire to withdraw is received by the W.H.E.. A producer who has withdrawn from
the program may subsequently renew participation by applying in writing to the
W.H.E.. Such renewal, however shall be subject to a 90 day waiting
period.
Producers wishing to opt out or subsequently renew in this program must complete a
"ITPP Enrollment/Exemption Form"
which can be downloaded by clicking the link provided.
DEFINITIONS
- HOG
-
Any market weight animal,
either male (castrated) or female, offered for sale by a producer and
deliverable to the sale destination point or processor licensed by the W.H.E.
and one that is destined for slaughter.
- SOW
- Any large female animal offered for sale in the same manner as hogs.
- STAG
-
Any large male castrated animal offered for sale in the same manner as hogs.
- BOAR
-
Any large male intact (not castrated) animal offered for sale in the same manner as hogs.
- SUBJECT
-
Any animal that show signs of
distress, disease, extensive bruising or crippling, or where the power of
locomotion is impaired.
- CONDEMNED
-
Any live animal or animal carcass
which is condemned by Agriculture Canada Health of Animals inspection
personnel.
- PERIOD OF TRANSPORTATION
-
Period commencing with loading of
healthy animals upon a transporting vehicle in the producers yard and
terminating when the hogs become the legal property of the purchaser (upon
arrival at the packing plant).
- DEAD ON ARRIVAL
-
Any animal that dies during or upon
termination of the period of transportation.
- SCOPE OF COVERAGE
-
Subject to the conditions,
limitations and definitions contained herein, subscribing producers shall be
indemnified for loss sustained based upon the fair market value (100 index) of
hogs during that period of transportation.
ANIMALS COVERED
All animals in
healthy condition at the time of loading upon a transporting vehicle that
qualify for payment using the producers current hog carcass grading grid
(for dressed weight market animals), and including those animals sold on a
liveweight basis and those sold under special contracts.
CONDITIONS AND LIMITATIONS
-
Losses for HOGS which are dead on
arrival shall be settled on the basis of : (i) Weight calculated using
average dressed weight for the shipment in
which the loss occured; (ii) Index using the lesser of 100 or
the maximum index obtainable by classification; (iii) Price using the producers
100 index base price established for the shipment in which the dead hogs
occurred.
-
Losses for SOWS AND BOARS which are
dead on arrival shall be settled on the basis of: (i) Weight calculated the
same for hogs; (ii) Price using the sow and boar price established.
-
No dead on arrival losses shall be
settled unless the dead animals are delivered to the purchaser or salvage
company, and the cause of death is indicated on a properly completed and signed
ITPP loss report.
-
Indemnifiable condemned hogs shall be
settled on the basis of actual grading and dressed weight.
-
The producer shall be reimbursed for
the in-transit trim loss sustained to any animal which is received by the
purchaser and was not previously classified as a subject on the producer
receipt and which subsequently has a trimmable demerit assessed against said
animal for fractures or bruising only ($10 minimum).
-
All losses involving frostbite
demerits to animals shall be administered on the basis of individual
circumstances and assessment ($10 minimum).
- A $10 deductible will be deducted from ITPP claim payments on each animal loss (not partial losses).
This will not affect the Producer's ITPP premium rate.
ANIMALS NOT COVERED
-
Any animal which is identified as a farm origin subject.
-
Any animal which is condemned for reasons of farm origin disease.
-
Any animal weighing 85kg (187 lbs) liveweight or less
PREMIUM RATES CHARGED
All subscribing
producers will be assessed a rate for each entire quarter based upon each
individuals previous quarters loss ratio on a per 1,000 hogs shipped basis.
Each producers quarterly loss ratio is calculated as follows.
(No. of Alberta Losses for Quarter / Volume for Quarter) x 1000
If a producers loss
ratio improves (lowers) for an entire quarter, then his premium rate will
also be lowered for the next quarter.
Producers who have a
loss ratio for the previous quarter of less then 1 per 1000(0.00-0.99) are
charged the lowest rate (base rate) of the premium which is $0.10 (10 cents) per
$100 of gross value.
QUARTERLY ITPP LOSS RATIO CATEGORIES AND PREMIUM RATES
Loss Ratio Category |
0-0.99 |
1-3.99 |
4-9.99 |
10 &up |
Premium Rate |
$0.10 |
$0.21 |
$0.32 |
$0.60 |
Please note quarterly rates may be altered without prior notice by the W.H.E
Last Updated February 12, 2016
ITPP Inquiries
If you would like further information regarding transit insurance, or would like
a form mailed to you, please contact us.
WHE General