NICO introduces insurance policy cover for tobacco


NICO General Insurance Company Limited in conjunction with Auction Holdings Limited have introduced the first ever tobacco scheme aimed at serving as surety to tobacco farmers on loans advanced to them by financial institutions. Officials from NICO say the insurance policy cover, named Mtetezi, also serves as an indemnity vehicle in case of accidental damage, loss or theft of tobacco leaf.

NICO General Insurance General Manager Eric Chapola said at the launch of Mtetezi in Lilongwe that the insurance policy cover is a comprehensive tobacco insurance policy ensuring the grower that the crop is well covered right from transplanting until finally delivered at the auction floors. "Other policies in the past have attempted to provide cover but not as comprehensive as this product. The risks of hailstorm, tempest, excessive rainfall, fire, theft, overturning of carrying vessel, lightening, malicious damage are all covered by this product," said Chapola.

He said Mtetezi can be bought from any NICO General offices or any Auction Holdings offices whilst payments will be made to NICO General by Auction Holdings after the grower has sold the tobacco. "So one does not require to have money upfront to buy the policy. One will, however, have to authorise Auction Holdings Limited in writing to make such deduction," he said. Chief Executive for Auction Holdings Limited Evans Matabwa said his company has decided to contribute two and half percent towards each premium that the farmers will be quoted for Mtetezi policy. Matabwa said Mtetezi has come at a right time when the world is battling to effects of the financial meltdown, making it difficult for people and companies to access financing from lenders.

"We feel the time is now. The time to hold hands, rise up and protect that which has kept this country going for all these years," said Matabwa. Guest of honour at the launch, principal secretary in the Ministry of Agriculture and Food Security, Andrew Daudi welcomed the new insurance policy, saying it would immensely benefit 150,000 registered tobacco growers in the country and 1.5 million people who grow tobacco across the country but are not registered. "Businesses should not come to an end when calamity strikes. The mark of a great man or woman is to rise, dust yourself and proceed on your journey after you stumbled and fell. This Mtetezi insurance policy helps you to be a great man or woman," said Daudi.

Tobacco in Malawi is the single major foreign exchange earner and backbone of the economy, contributing up to 61 percent of total merchandise exports and employing a reasonable percentage of the country's population.

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