Nico General Insurance Company (Nico) has been commended for developing a tobacco insurance policy which addresses risks tobacco farmers in the country face.
Speaking during a stakeholder’s forum Nico organised in Blantyre, Marsh Managing Director, Oscar Mpando, said the insurance policy addresses the various risks tobacco farmers face from the time they plant the crop to its delivery at the auction floors.
“Tobacco being the major contributor to the Gross Domestic Product, contributing about 15 percent, it’s a very good product and we do bring out concerns farmers do have in terms of saving culture,” he said.
The tobacco insurance policy called ‘Mtetezi’ protects farmers from risks such as storm, theft, floods, fire, lightening and malicious damage.
And according to Nico General Chief Executive Officer, Eric Chapola, said that Nico will be selling the policy to farmers through the banking system.
“What we do every year is to gather our brokers, agents, and other stakeholders like banks, and microfinance institutions to share with them products that we have brought up and the strategy that we have developed over the years is therefore to sell it [Mtetezi] through the banks. The hypothesis is that when the banks give loans to the farmers, then we should also be able convince them and insure them,” he said.