01. What is Insurance?
Insurance means protection from a specified loss.
How Does Insurance Work?
- When you have something that has financial value to you and you want to protect it you get insurance.
- You will contact an insurance company, you will be requested to pay a small amount of money (known as premium).
- When you pay the money, you will have a contact with the company for compensation in caseof loss.
Agriculture Insurance
Is insurance that protects you from agriculture production risks and other risks in the Agriculture Value
Chain.
Benefits Of Insurance
- Reduces the extent of loss suffered when risk insured happens.
- eaceful mind as the insured carries out his activity.
- Business can continue even after loss.
- Boosts confidence
02. What is Covered?
Products Covered
- Livestock (animals) e.g. Pigs, Cattle, Goats, sheep, rabbits.
- Poultry e.g. layers, Broilers, Kroilers, Local, ducks, Turkeys
- Crops e.g. Maize, Beans, Millet, tomatoes, Irish Potatoes, Pumpkins, Oil seed, Pumpkins etc
- Fish – Nile perch, mud fish, Nile Tilapia.
Risks Covered
- Animals: Death Of Animal Due To Storm, Fire, Lightening, Theft From Violent Entry, Non-Vaccine Diseases Such As Swine Flu.
- Poultry: Death Of Birds Due To Storm, Fire, Lightening, Theft From Violent Entry, All Disease Except Those That Are Excluded.
- Fish: Death Due To Disease, Pollution, Theft, Predation
03. What Products are Offered?
Weather Based Index Insurance (WBII):
Is insurance that protects you from drought and excessive rainfall.
It covers:
- Drought (when the amount of water needed for plant growth is not attained due to too much sunshine).
- Excessive rainfall (too much rainfall that may increase the amount of water in the soil more than that needed for proper growth of the crop).
How it works
Satellite computers are used to monitor the relative Evapo-transpiration rate (the rate at which water is moving from land, plants to the atmosphere) and this will give us an index. The E-LEAF Company is an independent company in charge of monitoring.
Area yield index insurance:
Area yield index insurance is a cover that insures farmers against yield losses due to natural calamities in a unit area of insurance.
Risks covered:
- Drought, Flood, Pests and plant diseases, Hail, Frost, Windstorm, Excessive Rainfall, and Heat Wave.
Risks not covered:
- Yield reduction due to theft, war, animal encroachment etc.
How it works
Area Yield Index Insurance divides the country into UAIs (Uniform Agro-Ecological Zones) based on past harvests and rainfall. Farmers in each zone pay a premium, and sample farms are checked during the season. If the average harvest is below the set target, farmers in that UAI receive a payout.
Livestock insurance:
Is insurance of animals against death due to a specified risk.
Risks covered:
- Death Of Animal Due To Storm, Fire, Lightening, Theft From Violent Entry, Non-Vaccine Diseases Such As Swine Flu.
Risks not covered:
- Feed poisoning culling infertility prior diseases famine.
How it works
Animals to be insured are first inspected by a veterinary officer. Those found to be in good condition, with verified vaccination certificates, are tagged for identification after the farm inspection.
04. Getting Insured & Making Claims
How to get insurance
Select a product depending on what risks you are likely to face
1. Approach one of the following
- Farmer Organizations
- Partner Insurance companies
- Agro Consortium
2. A proposal form is shared and filled out by the client.
3. Send the filled-out proposal form to one of the above you approached.
4. A quotation will be prepared on the values proposed.
5. For livestock, an authorized vet will be appointed to access the general condition of the animals.
How to claim in case of loss
Select a product depending on what risks you are likely to face
Livestock insurance:
- Notify the consortium through a written communication incase an animal dies due to an insured peril.
- Client should invite a veterinary personnel to conduct a post mortem and fill the claim form.
- Submit the claim form and other supporting documents to the insurer.
- A loss assessor is assigned to verify the loss.
- A loss adjustment report will be provided by the loss assessor that will form the basis of compensation.
- The client will be provided with a discharge voucher.
- If the client agrees with the discharge voucher, then claim settlement/payment will be done.
Weather Based Index Insurance Clients:
- Monitoring results are received at the end of the season.
- Yield losses are based on the severity of the risks, insured farmers are automatically compensated to the extent of average loss suffered by all farmers in that sub county.
Area Yield Index Insurance:
- In area yield- index insurance the insurer moves with the farmer along the production chain.
- If there is loss from the sampled gardens the farmers are automatically compensated to the extent of average loss suffered by the sampled farmers in that AEZ.