FCLC to promote Parametric Microinsurance cover
22 September, 2022, 6:30 am
The Fiji Crop and Livestock (FCLC) has been appointed to promote the Parametric Microinsurance Cover provided under the Parametric Insurance and Climate Adaptation Programme (PICAP).
Anticipated to be an exciting opportunity for farmers, the PICAP is jointly administered by the United Nations Capital Development Fund (UNCDF), the United Nations Development Programme (UNDP), and the United Nations University Institute for Environment and Human Security (UNU-EHS).
This will be a first for farmers as the Parametric Microinsurance Cover is tailored for the small holder farmers, fishermen, market vendors and small business owners, and assures protection from the destruction caused by the impacts of natural disasters, specifically cyclones and excessive rainfall.
“This Parametric Microinsurance Cover has come at an opportune time when Fiji’s agriculture industry braces for the upcoming cyclone season starting from November,” said FCLC chief executive officer Jiu Daunivalu.
Funding is being received from the governments of New Zealand, Australia and Luxembourg through PICAP.
The Fiji component is funded by the India-UN-Development Partnership Fund administered by the United Nations Office for South-South Cooperation (UNOSSC).
According to the FCLC, the Parametric Microinsurance is based on a pre-defined index threshold directly related to the location of the policyholder.
Once the insurance is purchased, the cover could be up to $1000 or $2000 depending on the policy chosen (premium is 10 per cent of sum insured e.g $100 premium for $1000 cover).
Should a farmer experience an extreme weather event such as a cyclone or excessive rain, the index will determine the payout, and it can be anywhere from $100 to $1000 if that is the policy a farmer has chosen. The payout could be within two weeks from the time the farmer registers the claim.
Mrs Daunivalu has urged farmers, fishers, market vendors, and small business owners to register to sign up for this opportunity.
“We have started a major awareness campaign to register our members into the program throughout the country. The cover will be of major help to those who purchase the policy to aid them in recovery resulting from a major weather event.”
The FCLC stated the team would be in Savusavu on September 26 and in Somosomo, Taveuni from September 27-28 to sign up farmers, fishermen, market vendors and small business holders.