Agriculture Insurance (AgroSure)
The largest economic impact of climate change is upon agriculture. And small-holder farmers bare the biggest brunt. Agriculture Insurance protects farmers against harsh climatic conditions and they can farm well assured that come rain or shine, they will reap the fruits of their labor.
Through a partnership with the Agriculture Insurance Consortium (AIC) – m-Omulimisa provides highly subsidized agriculture insurance through our network of agents.
AIC is a consortium of insurance companies providing subsidized (up to 50%) agriculture insurance under the Uganda Agricultural Insurance Scheme (UAIS) a Public Private Partnership (PPP) arrangement with Uganda Insurers Association (UIA) and Government of Uganda.
The service is commission based so the more insurance policies the agents sell, the more money they make. The commission helps agents meet their operational costs and provides an incentive for enhancing the service. By making the service accessible via the mobile phone, we make it easy for any farmer anywhere in Uganda to access insurance when they want it.
The service is available through USSD, Mobile App and via our website. We integrate mobile money to make it easy for you to pay for agriculture insurance as well as receive compensation at the end of the season.
Subsidies for Crops
| Farmer Category | Seasonal Income | Subsidy |
|---|---|---|
| Small scale | Less than or equal to 20M seasonalIncome | 50% |
| Large scale | More than 20M seasonal Income | 30% |
Subsidies for other Enterprises
| Farmer Category | Items | Quantity | Subsidy |
|---|---|---|---|
| Small scale | Poultry | 500 – 2000 birds | 50% |
| Large scale | More than 2000 | 30% | |
| Small scale | Cattle | 1 – 30 | 50% |
| Large scale | More than 30 | 30% | |
| Small scale | Pigs | 1 - 50 | 50% |
| More than 50 | 30% | ||
| Fish | Mostly participants are large scale | 30% |
Drought Index Insurance
What is covered
Drought and excessive rainfall
How It Works
Drought index insurance monitors crop water availability to determine drought and has a linear correlation with crop yield. It is therefore a much more suitable indicator of agricultural drought than rainfall. The product’s Drought index insurance is based on innovative satellite technology and provides an affordable alternative to expensive traditional loss based crop insurance.
Using 33 years of Meteosat data and near real-time data reception we use drought insurance indices to determine drought payouts per season and continuously monitor drought across Uganda. When there is a drop in the expected average yield of the district due to drought or excessive rainfall, a linear payout is triggered to the extent of the loss experienced due to the drought as monitored by the drought index.
Basis Of Cover
Sum insured for the crop is based on production costs or pre-agreed nominated value of the harvested crop based on the Long Term Average Yield (LTAY)
- Planted Area (ha) x Long Term Average Yield (tones/ha) x Pre-Agreed Value (Ushs/ton)
- Cost of input or costs incurred in running that enterprise e.g. Seed, fertilizer, ploughing, weeding, agrochemicals etc.
Calculation of Insurance Paid
- If a farmer has one acre of Maize and is expecting to get 15 bags (1,500 kgs) and the expected selling price after harvest is 800 per kg, the sum insured would be 1,500 kgs x 800 = 1,200,000
- The premium rate is 5% of the expected income or sum insured which is 0.05 x 1,200,000. The premium before the government subsidy would be 60,000
- Farmer pays 0.5% training levy that goes to the Insurance Regulatory Authority. 0.005 x 60,000 = 3,000
- Farmer pays VAT which is 18% of (60,000 + 3,000) which is 11,340
- Net premium paid by farmers is 50% of 60,000 + 3,000 + 11,340. This would come to 30,000 + 3,000 + 11,340 = 44,340.
- For Livestock, the sum insured as well compensation, is based the price of a mature animal. This applies as long as the animal is more than 3 months old.
Exclusions
Harvested Crops and Crops in transit; Any Crop which has been harvested prior to inspection by our loss assessor; A result of consequential loss whether or not caused by a defined peril. Where recognized good farming and harvesting practices have not been followed; Controllable diseases, weeds and/or controllable insect infestations
Crops covered
- Coffee, Tea
- Maize
- Rice
- Beans
- Bananas
- Fruits and Vegetables
- Cotton, Oil Palm,
- Cassava
- Irish Potatoes
Crop premium rates under drougt index insurance
| Crop | Premium Rate | Yield Guarantee |
|---|---|---|
| Maize | 5% | 90% |
| Beans | 5% | 90% |
| Coffee | 5% | 90% |
| Bananas | 5% | 90% |
| Tea | 4% (Western region) | 90% |
| Cotton | 6% (Central region) | 90% |
| Sunflower and Oil Seeds | 90% |
Other enterprises covered under drought index
Livestock both beef and dairy
Premium rates for livestock under drought index insurance
| Animal | Premium Rate | Excess |
|---|---|---|
| Dairy Cattle | 5% | 10% |
| Exotic Beef | 4% | 10% |
| Local Cattle | 3.5% | 10% |
Multi Peril Insurance
What is covered
Indemnity against physical loss or damage to growing crops directly by uncontrollable pests and diseases, drought, Fire, Lightening, Malicious damage, Earth quake, Riot and strikes, Explosion and Windstorms
Basis Of Cover
Sum insured for the crop is based on production costs or pre-agreed nominated value of the harvested crop based on the Long Term Average Yield (LTAY)
- Planted Area (ha) x Long Term Average Yield (tones/ha) x Pre-Agreed Value (Ushs/ton)
- Cost of input or costs incurred in running that enterprise e.g. Seed, fertilizer, ploughing, weeding, agrochemicals etc.
Exclusions
Harvested Crops and Crops in transit; Any Crop which has been harvested prior to inspection by our loss assessor; A result of consequential loss whether or not caused by a defined peril. Where recognized good farming and harvesting practices have not been followed; Controllable diseases, weeds and/or controllable insect infestations
Crops covered
- Coffee, Tea
- Maize
- Rice
- Beans
- Bananas
- Fruits and Vegetables
- Cotton, Oil Palm,
- Cassava
- Irish Potatoes
(the fillable crops form should appear below. Farmer should be able to fill the form and send it to us or download it to be filled later)
Other enterprises covered under multi peril
- Livestock
- Piggery
- Fish
- Poultry
(the fillable forms should appear below each of these enterprise. Farmer should be able to fill the form and send it to us or download it to be filled later)
What is covered
Death of animal as a consequence of: Fire, Lightning, Flood, Rainstorm, snake bites Windstorm,Hailstorm,Snow,Hurricane,Earthquake,Landslip,Diseases,Inundation,Surgical Operation and Impact accidental damage by animals, trees or vehicles, aircraft or motorized machinery.
Basis Of Cover
Sum insured for the animal is based on production costs or pre-agreed nominated value of the animal as at end insurance period
Determined market value by a registered veterinarian and farmer, in case of Poultry layer birds, the value of the bird as per the farmers’ investment can be considered.
Exclusions
Willful misconduct, feed poisoning, Culling, Prior accidents or diseases, Mysterious disappearances, Famine and Malnutrition, Infertility or impotence, Poor production like milk and eggs
Premium rates for livestock under multi peril insurance
| Animal | Premium Rate | Excess |
|---|---|---|
| Dairy Cattle | 5% | 10% |
| Exotic Beef | 4% | 10% |
| Local Cattle | 3.5% | 10% |
| Piggery | 6% | 15% |
| Poultry | 5% | 15% |
| Fish | 6% | 15% |
Agents
Recruitment of Agents
We are currently recruiting agents that will be provided agriculture insurance to farmers across Uganda. An agent will earn from selling insurance and will receive training from m-Omulimisa. An agent must have basic education and must know how to use a phone. The service can be accessed on any phone so you don’t need to have a smartphone for you to become an agent. However, with a smartphone, you will able to access more services from the system.
Calculation of Insurance Paid
1. Individual
2. Registered business
3. Farmer Co-operative
4. Community Based Organization
5. Farmer Organization
6. NGO
Who can become an AgroSure Agent?
1. Certificate of incorporation/registration certificate from responsible entity (for a business or organization)
2. Physical business location/address
3. Valid Identification documents (National ID, Passport, Driving Permit)
4. Registered Mobile Money number
5. Good mobile phone proficiency