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Published On: Wed, Feb 7th, 2018

IBAI to support farmers in risk mitigation -NAICOM

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From Ngozi Onyeakusi, Lagos

The National Insurance Commission (NAICOM) has said that the Index-Based Agricultural Insurance (IBAI) Programe.
IBAI will support as well assist farmers in the country mitigate risks.
The commission come up with IBAI in an effort to complement the Federal Government initiative to boost food production across the country.
ABAI programme has had its pilot phase in 10 states of the federation namely, Adamawa and Benue. Other include Kaduna, Bauchi, Kano, Katsina, Kebbi, Nasarawa, Taraba and Zamfara.
NAICOM, Director Inspectorate, Barinake Thompson while presenting a paper on IBAI said the scheme, which is new and better than conventional insurance policies will assist farmers in getting loans affordably from banks as well as get access to facilities.
Before last year, he said what Nigerian insurance firms were offering are pure conventional insurance “ Upto to early last year insurance companies go on to insure farmers, providing pure indemnity insurance covering mostly assets, machineries, tools, it didn’t even really cover yields from the farms. It covers for instance if you are transporting beans from the north to the south, and if there is accident on the way and it got damage, it will be indemnified. That what conventional insurance covers. IBAI is relatively new financial instrument used in transferring agaric risks from individual or those of farmers from to risks carriers. These risks are also reinsured both locally and abroad”, he said.

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