Representation, advice and friendly assistance can give your business the edge in the event of a dispute.
The scenario:
A farming business applied for common agricultural policy (CAP) single farm payment subsidy to Rural Payment Wales (RPW).
What happened?
RPW assessed that the client had made an inaccurate application in that they had overclaimed their entitlement by a number of hectares.
RPW imposed a penalty (£5,000) and reduced the claim by a commensurate amount.
The client contacted rradar under the terms of their policy. rradar assessed the case and, acting on behalf of the client, they appealed RPW’s decision.
The outcome
RPW agreed to reassess the client’s claim and the penalty was significantly reduced. There was still an element of overclaim but nowhere near as much as RPW had initially said.
In the case of payment subsidy claims, repeat offences would have led to greater fines, so it was important that the client got the claim right.
CAP schemes appeals cover is included under the pursuit section of Rural Protect. Many clients use their CAP payment to cover other overheads if this is reduced or removed it can cause significant impact to a business’s expenses. This is another unique cover feature of Rural Protect that we provide as standard in all our policies. Total cost for legal fees in the handling of this claim were just under £4,000.
Preparation and representation of the insured at an appeal for any payment reduction in the CAP payment schemes is insured for up to £10,000 of cover within any one period of insurance.
Something to think about
Rural subsidies can be complex matters for farming businesses and there are many factors that will affect an application. If an honest mistake is made, does the business have the expertise to represent and protect itself against the regulators?
