Insurance Options-Important Role Of Agric Insurance In Nigeria

Without wasting much time am heading straight to the topic at hand which is importance role of agric insurance in Nigeria. Permit me to say this, whether you agree or not we all need insurance be it barrow pusher, Motor-Condutor, or whatever it's you are into at least you need Comprehensive insurance. Now
having say that am meanly going to focus more on Agric insurance today since the government is gradually recognizing the importance of agriculture to over all development of the country. Whether you chose to believe me or not below is a copy of feed back i received from Nigeria Agricultural Insurance  Commission. NAIC with respect to agric project.
 
BRIEF ON THE AGRICULTURAL INSURANCE PRODUCTS OBJECTIVES
The broad objective of the Agricultural Insurance Scheme is to protect the farmer against the devastating effects of natural disasters by ensuring the payment of appropriate compensation sufficient to bring the farmers back to production after suffering a loss. Thus, the scheme enhances overall agricultural production, encourage lending institution to provide more credit facilities to farmers and agro-allied industries, and also to indemnify farmers when they suffer losses from natural disasters. It replaces to a great extent, the need for emergency assistance usually provided by Governments during period of agricultural disasters.
 
ITEM UNDER COVER 
1. Food Crops: - e.g. Maize, Rice, Cassava, yam. Vegetable, Wheat, Sorghum, Millet, Groundnut etc
Basic Perils Covered: Fire, Drought, Diseases and Pests, Flood, Windstorm, Lighting and Explosion
Premium Rating: Statutory rate of 4% less 50% Government subsidy (1.e 2%)
 
2. Cash Crops:-e.g. Cocoa, Citrus, Oil Palm, Rubber, Cashew, Sugar Cane, Cotton, Forestry etc.
Basic perils Covered: Fire Lighting, Flood, Aircraft Damage, Windstorm, And Hurricane
Premium Rating:According to risk hazards i.e. type of crop, management standard of age of trees, loss experience, location etc
Standard is 1.5% – 3%
 
3. Poultry: -Poultry Birds (Broilers, Breeders, Layers, Cockerels). Turkey, Duck etc
Basic perils Covered Loss of birds by death resulting from Accident or diseases
Premium Rating Statutory Rate of 5%, less 50% Government subsidy (i.e. 2.5%)
 
4. Domestic Animals:- (a) Livestock such as Sheep, Goat, Pigs, Rabbits, Cattle, Grass cutter, etc
Basic perils Covered :Death (Mortality) or injury due to accident, disease/illness, fire, storm, flood, and lighting
Note : Additional premium is charged at the rate of 5% (VALUE) for AFRICAN SWINE FEVER DISEASE IN RESPECT OF PIGGERY.

Premium Rating Statutory rate of 5%less 50% Government Subsidy (i.e 2.5%)
Commercial livestock(b) include Dogs, Horses, and Camels etc.
Basic perils Covered as in (a) above
Premium Rating4% - 6%
 
5. Fishery/Fish Farm:-Fish in Ponds/tanks
Basic perils Covered: Loss of fish by death resulting from Accident or Disease or collapse of fish pond resulting from Fire, Flood, Windstorm and Lighting.
Premium Rating statutory rating of 5% less 50% subsidy (i.e. 2.5%)
NB: Policy may also be extended to cover collapse of fish pond
(Dyke) during the period of basic cover at 1/ Premium Rate
 
6. Combined Agric Produce and Marketing Insurance: A multi peril providing cover for
Transit and storage risks (Fire, Burglary and Good in Transit)
Premium Rating1.5%
 
7. Fishing Nets and Boats with Outboard Engine (Marine Hull):- As the name implies Fishing equipment's such as Nets, outboard Engine, fishing boats etc.
Basic Perils Covered: Loss of damage to insured items by Fire, Lighting, collision, explosion, Storm, violent theft, sharks or other sea animals.
Premium Rating5% of value of items.

 Hope this will help somebody out there more especially our farmers. If you still have question suggestion kindly use the comment box and i will do my best to answer you. 

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