(HERALD) Mixed feelings over insurance companies, farmers

Mixed feelings over insurance companies, farmers
Thursday, 03 May 2012 00:00
Agriculture Reporter

THE issue of disputes between insurance companies and farmers has received mixed reactions with insurers accusing farmers of misrepresenting facts. Tobacco growers have been crying foul over insurance companies deducting money through stop orders facility without their consent. According to the farmers, insurance companies usually act as guarantors to input schemes and most farmers said they were not aware of that position until the time when the money was deducted.

Affected farmer, Mrs Sophia Marimo, said she only realised that she was insured by SFG Insurance company after money was deducted from her account.

“I never benefited from the input scheme I had joined and was surprised that SFG deducted money from my tobacco sales,” she said.

The Tobacco Industry and Marketing Board (TIMB) had to suspend some insurance companies from the stop order system pending investigations.

SFG Insurance chief executive officer, Mr Charles Madziva, said the company was not among those suspended.

“We met with Dr Andrew Matibiri and he confirmed that,” he said.
Mr Madziva defended his company and said it was not one of the dubious insurance companies that were duping growers.

“For the record, the farmer in question (Mrs Marimo) signed willingly a tobacco insurance application form and stop order. If she had changed her mind she should have informed us at inception not when the cover has run for the full period. Cover was granted with the understanding that premiums would be paid upon sale of the crop.
“If the farmer had suffered a loss, we would have honoured the insurance contract. By agreeing to collect the premiums in retrospect does not absolve the farmer from their contractual obligation of paying the premiums as per agreement.

“We did not deduct premiums without the knowledge and consent of the farmer. As indicated, these signed records are available for your perusal,” he said.

SFG Insurance has so far assisted more than 5000 farmers to access inputs from various stakeholders at a time when banks were unable to fund these farmers.
A number of farmers assisted by such firms had high yields as the inputs were accessed on affordable terms.