1.Support under point (a) of Article 36(1) shall only be granted for insurance contracts which cover for loss caused by an adverse climatic event, or by an animal or plant disease, or a pest infestation, or an environmental incident or a measure adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease, or pest which destroys more than 30 % of the average annual production of the farmer in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year.
The measurement of the extent of the loss caused may be tailored to the specific characteristics of each type of product using:
(a)biological indexes (quantity of biomass loss) or equivalent yield loss indexes established at farm, local, regional or national level, or
(b)weather indexes (including quantity of rainfall and temperature) established at local, regional or national level.
2.The occurrence of an adverse climatic event or the outbreak of an animal or plant disease or pest infestation or an environmental incident has to be formally recognised as such by the competent authority of the Member State concerned.
Member States may, where appropriate, establish in advance criteria on the basis of which such formal recognition shall be deemed to be granted.
3.As regards animal diseases, financial compensation under point (a) of Article 36(1) may only be granted in respect of diseases mentioned in the list of animal diseases established by the World Organisation for Animal Health or in the Annex to Decision 2009/470/EC.
4.Insurance payments shall compensate for not more than the total of the cost of replacing the losses referred to in point (a) of Article 36(1) and shall not require or specify the type or quantity of future production.
Member States may limit the amount of the premium that is eligible for support by applying appropriate ceilings.
5.Support shall be limited to the maximum rate laid down in Annex II.