Dairy Farmers Microinsurance Scheme pays first claim

June 1, 2018

Suva, Fiji – The first microinsurance payout for the dairy microinsurance scheme was made this week by the Fiji Cooperative Dairy Company Limited (FCDCL) and FijiCare Insurance Limited.

Luisa Singh, a registered farmer of FCDCL passed away last Saturday after succumbing to kidney failure.  Luisa had inherited from her late husband, a 45-acre farmstead in Naluwai settlement in Vunidawa, Naitasiri Province consisting of 68 cattle, dalo and other cash crops.

Two days after her passing, her son Dharmendra had visited the FCDCL office to seek a microfinance loan to assist his family with the funeral expenses.  It was here that he discovered that while he was not eligible for a loan for funerals, in fact his mother was covered for funeral expenses under a recently launched insurance scheme for dairy farmers.

The very next day, the Singh family was visited by the Chief Executive Officers of FCDCL and FijiCare who were also accompanied by representatives of the UN’s Pacific Financial Inclusion Programme. The group had travelled from Suva to pay their respects to the family and to present a FJD $1,000 cheque.

Under the scheme, a claims payment is triggered once the FCDCL informs FijiCare that one of its member has passed away. The claims money is designed to help farmers ease some of the burden associated with funeral expenses. A further payout of F$3,000 will be made after the death certificate has been lodged with FijiCare.

Beneficiary Dhamendra Singh said that he had been desperately trying to get funds to deal with his mum’s funeral and he was grateful for the fast insurance payout that was made.

FCDCL’s Chief Executive Officer, Mr Sachida Nand said the microinsurance scheme which was launched just two months ago, is already showing great benefits for dairy farmers.

“Our farmers needed this added financial security. It means that they don’t have to borrow money in ways that may not be in their interests, and that could leave them in a poorer financial situation.”

FijiCare Managing Director, Mr Peter McPherson, said FijiCare was proud to support farmers especially in their time of need.  He added that payouts would not ease the pain of losing a loved one but would give the family some peace of mind and reduce their financial worries.

The bundled microinsurance product is one of PFIP’s many regional efforts to increase the use of financial instruments, especially insurance, to help Pacific Islanders cope with disaster related risks. The Fiji Care bundled insurance project has been partially funded by the Australian Government and the Russian-Federation, UNDP administered Regional Disaster Resilience in the Pacific Small Island Developing States (RESPAC) Programme.

 

Background on the Bundled Microinsurance scheme

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:

  • Life and Funeral (up to age of 65) – FJ $4,000.
  • Term Life – In the event of death of the insured, a total of $3,000 will be paid to the beneficiary.
  • Funeral – A total of $1,000 will also be paid for funeral expenses of the insured.

2) Personal Accident (up to age of 65) – Maximum FJ $3000

  • This provides protection for any injury that results in partial or total disability of the insured person because of an accident.

3) Fire – Maximum FJ $3,000

 

About FijiCare

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).

 

About FCDCL

FCDCL is the principal supplier of raw milk for processing in Fiji. FCDCL buys milk as per the quality grades and sells it to Fiji Dairy Limited. 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.

 

About PFIP

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    

Phone: +679 3227538    Email: Erica.lee@undp.org     Website: http://www.pfip.org