Nigerian farmers covered by the Nigerian Agricultural Insurance Corporation (NAIC) get new packages in the area of parametric insurance otherwise known as Area Yield Index (AYI).
NAIC Executive Director of Operations, Bashir H Binji, recently told journalists in Abuja after the inauguration of a technical steering committee for implementation of bilateral agreements signed between Nigeria and Morocco.
He said, "For the area yield insurance, if you are producing 3.5MT to 4MT of rice in a hectare, what we do is when you achieve 70 per cent of it, no payout, but when you get anything less than 70 per cent of it, we would pay you."
Binji, however, noted that this insurance would only cover losses accrued after using inputs recommended by NAIC.
"We would recommend in this kind of policy a superior seed for a certain region, so poor yield as a result of poor germination or as a result of poor seed quality, definitely we are going to exclude it because we are going to tell you the appropriate input to use so that this can be sustainable," he said.
He outlined that the package guaranteed a winning situation for farmers, whom he said were very happy about it, adding that the new products would be run concurrently with the already existing indemnity-based insurance products.