NIC pays 257m/- to farmers insured against drought

THE National Insurance Corporation (NIC), a state-owned enterprise, has paid almost 257.3m/- to some of Kilimanjaro’s farmers issued against agricultural-related risks.

The state-owned entity paid the farmers under their association, NAFAKA Agricultural Marketing Co-operative Societies (AMCOS), over the week, who insured against such natural certainty.

The NIC Managing Director, Dr Elirehema Doriye, said the Nafaka-Amcos is part of some 6000 farmers insured with them against several agricultural-related risks.

“Agricultural insurance is a valuable business risk management tool that provides farmers with financial protection against production losses caused by natural perils,” Dr Doriye said shortly before handing over a dummy check to members of Nafaka-Amcos in Kilimanjaro.

The NIC boss underscored the importance of ensuring agriculture saying it creates safety nets for farmers to enable and encourage them to invest in their farms and raise productivity.

According to Dr Doriye, the 2021/22 drought witnessed in some parts of the country dealt the farmers a huge blow.

“We’ve come to their rescue, mindful of the importance agriculture offers to Tanzania,” he said.

The NIC boss further encouraged farmers in the country to make the most of agriculture insurance in a bid to cushion economic losses in agricultural production and reduce high risks and uncertainties often associated with agricultural enterprises such as pest and disease invasion, crop failure and natural disasters.

The Nafaka-Amcos representative Bertho Mbilinyi thanked NIC for the noble gesture, saying it will encourage more farmers to subscribe to such premiums.

“Agriculture is a very important sector, yet it is still at the mercy of climatic shocks,” Mr Mbilinyi said.

Adding: “Besides threatening global food security and stability, these shocks can cripple livelihoods, disrupt value chains and even undermine macroeconomic stability,” he added.