Oromia Insurance Company (OIC) S.C., one of Ethiopia’s private insurance companies has paid a claim of 525,000 Birr for 300 farmers in Oromia Regional State for crop failure, Addis Fortune reported.

The claims were handed over on October 23, 2015, to the beneficiaries at a ceremony held in Zeway, Oromia Regional State. The beneficiaries have come from Kemo Gerbi and Desta Abiyata kebeles of Adami Tulu in Gedo Kombolcha wereda, Eastern Shewa, Oromia Regional State.

This insurance policy is part of a programme under the Ministry of Environment, Forest & Climate Change. The policy receives fund from United Nations Development Programme (UNDP). UNDP has paid a 300,000 Birr premium to OIC for the farmers for 2015 crop failure.

Daniel Negassa, Head of OIC’s Micro-Insurance Department said: “We have covered for the crop failure recorded on both Belg and Meher seasons in these two areas,” said Daniel Negassa, head of OIC’s Micro-insurance Department.

OIC works with the National Meteorology Agency’s (NMA) branch office in Oromia to gather data recording rainfall levels. To check the accuracy of the data obtained from the Agency, OIC additionally uses satellite data, Daniel explained.

Claims paid to farmers ranged from 500 Birr to 3,000 Birr, based on the assessments made. Payments were made via Meki Batu Fruit & Vegetables Growers Cooperative Union. According to Daniel, this year’s claims were higher than the years before.

OIC has launched crop and livestock insurance coverage in Oromia Regional State in 2010.

Source: Addis Fortune