Agricultural Insurance

Agricultural Insurance is a policy which involves the insured (farmer) paying a little sum (premium), usually in percentage to an insurance company (insurer) to guarantee against loss due to any of the perils (death, flood, drought etc.) covered for a particular period of time (usually not more than one year) with a promise to indemnify (pay back the value of loss) should such occur

Why Agricultural Insurance

It enables farmers to obtain credit and financing for investment in new technologies, tools, and equipment to enhance and sustain their productive capacity.
It also assists farmers in regulating cash flows and provides a financial buffer with which to rehabilitate damaged enterprises
It reduces business risk. In agriculture, equipment and properties are used in the operations which due to human error can be damaged or destroyed in a split second. Agricultural insurance helps to offset these types of risks.
It provides the farmers with peace of mind. Agricultural insurance removes the worries, tensions, fear and anxiety associated with farming making it possible for farmers to be more productive and creative with their farming business
It encourages saving through regular payment of premium which cannot be withdrawn easily before the expiration of the policy.
It provides credit facilities. The farmer can get loans by using the insurance policy as collateral whose interest will not exceed the cash value of policy charged by the insurer.
It accelerates the economic growth of a country by accumulating capital from the insured and using it for investments in services and infrastructure necessary to grow the economy.
It also helps to reduce inflation caused by oversupply of money by collecting excess money in circulation in the form of premiums
It also provides job security for employees because it can save their employers from going out of business which will lead to employees or workers losing their jobs.

Types of covers

Animal agricultural insurance

Crop agricultural insurance

Farm equipment and property agricultural insurance

Animal agricultural insurance

Crop agricultural insurance

Farm equipment and property agricultural insurance