Municipal Hail Insurance is
History of Municipal Hail
Municipal Hail came into being on June 1, 1917 following a developmental period that began in 1903 when the North West Territories established a system of government hail insurance. At the time, all other organizations were prohibited from providing hail insurance. In 1905, Saskatchewan became a province and continued this system. By 1908, extreme losses had been suffered and the Act was repealed.
Farmers were unhappy with this move and through the Saskatchewan Grain Growers' Association, pressed for another public hail insurance plan to be established. A system of municipal hail insurance was proposed and was incorporated into an act in 1912. Following a period of revisions and adjustments due to an extremely heavy loss by hail in 1916, the new Municipal Hail Insurance Act came into force in 1917. This Act welded rural municipalities into an organization of their own, giving them powers to operate their own hail insurance business, known as the Saskatchewan Municipal Hail Insurance Assocaition (SMHI).
At the Muncipal Hail Annual General Meeting (AGM) in March, 1924, it was proposed that a limited company be organized that would be a wholly owned subsidiary of the Association. The subsidiary would write an extra or 'additional' amount of hail insurance for those farmers desiring more limit than is available through SMHI. This was put to a vote and was approved by the delegates attending the AGM and on March 25th, 1924, Additional Municipal Hail Limited (AMHL) was brough into being. AMHL continues to provide 'additional' coverage to landowners and tenants within the Province of Saskatchewan.
In March, 2014, at the 97th Municipal Hail AGM, it was proposed that the Association be permitted to own a second limited company. This company would provide, to farmers, the convenience of purchasing hail insurance coverage direct. This was put to a vote and was approved by the delegates, bringing Prairie Municipal Hail Limited (PMHL) into being.
The Association and its subsidiaries continue to operate today with the same principles on which they were founded.