March 16, 2018
Nausori, Fiji – Close to 300 dairy farmers will be protected by insurance for the first time in Fiji after the launch of a bundled microinsurance scheme today.
The Fiji Co-operative Dairy Company Limited (FCDCL), FijiCare Limited and UNCDF’s Pacific Financial Inclusion Programme had formed a partnership to provide insurance for the farmers, and signing up for this microinsurance scheme is one result of that collaboration
“Bundled” insurance offers consumers added convenience and potential cost savings by combining multiple insurance coverage in one package, one insurance policy. It includes a term life, funeral expenses, fire insurance on the house and household property of farmers and personal accident coverage at a standard, low and affordable price.
Fiji Care’s microinsurance has a combined cover limit of FJ $10,000 per insured farmer for a cost, or premium of FJ $52 per year ($1 a week). The $10,000 limit covers:
2) Personal Accident (up to age of 65) – Maximum FJ $3000
3) Fire – Maximum FJ $3,000
This insurance results from the findings of field research undertaken in October last year by PFIP and FCDCL on a sample group of dairy farmers. The study found that many farmers did not have any form of insurance and that they would be willing to take and pay for insurance that was affordable.
FCDCL Chief Executive Officer, Mr Sachida Nand said “part of our mission is to improve the livelihoods of our farmers and we feel that putting this microinsurance scheme in place will help to achieve that. We will shortly be starting a project with PFIP’s support to visit all our members to raise awareness of the microinsurance scheme and how it works, and we’ll be collecting information on our farmers to ensure that any claims are able to be paid out quickly.”
FijiCare Managing Director, Mr Peter McPherson, said “we know that farming is essential to the country, its economy and that dairy farmers face a number of risks in their day to day activities. Risks that can affect them personally, their property and their cattle. This microinsurance is a good step forward. We hope that we can do more for the dairy farmers and in phase two of our work with the FCDCL, with PFIP support we will be looking closely at the options to see how the cattle can also be insured, as this will also be clearly beneficial to dairy farmers.”
PFIP Deputy Programme Manager, Mr Krishnan Narasimhan said PFIP continues to work with the insurance industry to improve the Fiji’s insurance penetration rate which was only 12% of the adult population in 2015.
“The partnerships and initiatives that PFIP has funded has seen a great increase in the number of Pacific Islanders who now have insurance. Having insurance, means that the families of the farmers will now have protection against adverse events that may occur.”
He added that PFIP is trying to build resilience in the wider business community especially to natural disasters, and insurance can help businesses to recover faster from these events and can ensure that businesses continue to operate.
This is the third entity that FijiCare has provided microinsurance cover to. Last year it provided insurance for 12,500 sugarcane farmers and will be providing cover to copra and rice farmers very soon. PFIP’s work with FijiCare Insurance has been funded partially by the Australian Government and the Russian-Federation/UNDP administered Regional Disaster Resilience in the Pacific Small Island Developing States (RESPAC) Programme.
PFIP also donated five Samsung tablets to FCDCL to help assist with data collection and recording in real time by field officers.
FijiCare Insurance Limited, a general insurance company, underwrites medical, term life, mortgage protection, worker’s compensation, personal accident, public liability, funeral benefits, motor vehicle, and micro insurance risks in Fiji and Vanuatu (through its fully owned subsidiary VanCare).
FCDCL is the principal supplier of raw milk for processing in Fiji. FCDCL buys milk as per the quality grades and sells it to FDL. The aggregate cost of each grade milk varies due to its quality. Our Quality Assurance expertise assures that farmers are maintaining clean milking environment, Farm hygiene, and water reticulation.
PFIP is a Pacific-wide programme that has helped 1.78 million low-income Pacific islanders gain access to financial services and financial education. It achieves these results by funding innovation in financial services and delivery channels, supporting policy and regulatory initiatives, and empowering consumers.
PFIP operates from the UNDP Pacific Office in Suva, Fiji and has offices in Papua New Guinea, Samoa and Solomon Islands. It is jointly administered by the UN Capital Development Fund (UNCDF) and the United Nations Development Programme (UNDP) and receives funding from the Australian Government, the European Union the New Zealand Government.
For more information or media inquiries please contact:
Erica Lee – Communications Associate