Microensure and Focus General Insurance have paid out K250,000 to over 3,600 cotton farmers whose crop was destroyed last farming season.

The insurance firms said they had facilitated the payment of weather insurance claims to farmers who cultivated 4,300 hectares of cotton under contract with NWK Agri-Services.

According to David Dorey, agriculture programme manager at MicroEnsure, the farmers were all covered by FarmerShield, a unique product developed by the insurance provider.

FarmerShield is a product designed to protect farmers in the event of loss of life and adverse weather events.

Under the product, payouts are made directly to NWK, who use the payout to credit the outstanding loans of contracted farmers and then payout cash benefits with the balance.

Dorey said farmers in Lundazi and Mgubudu in Eastern Province were affected by dry spells in the early part of the season while farmers in Magoye, Kalomo and Moobola in Southern Province were also affected by excessive rains during the early part of January.

"The fact that we are able to pay claims in the first season is a strong indicator that satellite-based products are an effective way to reach scale," Dorey said.

Charles Hayward, chief agriculture service officer at NKW Agri-Service, also said the firm was looking to extend farmer coverage on both life and weather in the coming farming season.

At least 6,610 farmers were covered with weather insurance in the past farming season.

"This is the first season in NWK Agri-Services are using FarmerShield and we are pleased that farmers in weather-affected shed areas will see the benefit of taking out the weather cover. They will shortly be notified of these payouts," said Hayward. "We certainly look to expand farmer coverage on both life and weather in the forthcoming season."

Source - http://www.postzambia.com/