ZIMNAT Lion Insurance has launched a new insurance cover for farmers to give them a cash pay-out in the event of bad weather resulting in poor harvests.
Report by Gamma Mudarikiri/ Fidelity Mhlanga
The new insurance product “Pundutso Weather Insurance” will cover losses resulting from poor rainfall to ensure that farmers have returns from their fields even after bad weather.
Operations director Stanley Mazorodze said bad weather would be defined as too little rain measured at the nearest weather station.
“The readings from the weather station form the basis of the farmer’s payout as per rainfall patterns for that particular season,” he said.
“Given that there is need for indisputable evidence relating to bad weather, it will be more prudent to use readings from the nearest weather station as these will give comfort to both the farmer and Zimnat as the insurer.”
Farmers have in the past decade recorded poor yields largely due to poor rainfall patterns.
Financing constraints, among a myriad of challenges, continue to suppress agriculture growth in Zimbabwe while losses incurred from these have not been compensated, particularly for small scale farmers who cannot afford insurance.
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“We believe this product is going to be beneficial to different individuals that are going to purchase it,” Mazorodze said. “It’s a drought insurance which is relevant to small-holder farmers in this era of climate change.”
He said the product would also assist farmers to get financing for their projects, given various finance houses have expressed greater comfort in lending to farmers with weather insurance.
Zimnat will also be working with various agencies that will assist in ensuring that farmers get the technical support they require to maximise yields. Premiums will be kept low to ensure that communal farmers are able to take advantage of this product.
