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Ask your life insurance adviser

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By Allan Lwanga

Posted  Friday, September 5   2014 at  01:00
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As a farmer, what insurance plans are available to protect me from making losses on my crops?
Crop farming is fairly lucrative business and provides a livelihood for billions of people however there are pertinent risks involved often considered to be natural disasters beyond the control of the farmer. Examples include; hailstorms, drought, floods, insects etc. but imagine if a farmer borrows five million from an MFI and plants maize only for it all to die due to drought; would this suffice as grounds for exemption to pay the loan?
Crop Insurance is available and dates as far back as the 1820s in France and Germany. The two major types are crop yield protection, which protects against unexpected natural calamities and crop revenue protection, which hedges against the losses a farmer may incur due to crop price fluctuations.
In Uganda you can get this kind of insurance as a bundled product from VAT exempt life insurance companies and it is offered to banks, Saccos, MFIs and farmers’ groups to help repay their loans and provide replanting capital in case of a catastrophe. This kind of cover protects both the farmer’s life as well as his farming activities to avoid defaulting on his loan. In India it is compulsory for all borrowing farmers and the government subsidizes on the premiums.
For more information on insuring your future, please contact; lifeadvisor@uap.co.ug, www.facebook.com/uaplifeadvisor or TYPE UAP (leave space) Message (Send to 6933).

The writer is the Corporate Sales Manager for UAP Life Insurance.