1. Support for harvest insurance shall contribute to safeguarding producers' incomes where there are losses as a consequence of natural disasters, adverse climatic events, diseases or pest infestations.
Insurance contracts shall require that beneficiaries undertake necessary risk prevention measures.
2. Support for harvest insurance may be granted in the form of a Union financial contribution which shall not exceed:
(a)
80 % of the cost of the insurance premiums paid for by producers for insurance against losses resulting from adverse climatic events which can be assimilated to natural disasters;
(b)
50 % of the cost of the insurance premiums paid for by producers for insurance:
(i)
against losses referred to in point (a) and against other losses caused by adverse climatic events;
(ii)
against losses caused by animals, plant diseases or pest infestations.
3. Support for harvest insurance may be granted if the insurance payments concerned do not compensate producers for more than 100 % of the income loss suffered, taking into account any compensation the producers may have obtained from other support schemes related to the insured risk.
4. Support for harvest insurance shall not distort competition in the insurance market.