admintheir crop and also promising to provide inputs. Farmers sign various insurance forms authorising the companies to deduct money after sales. Harare provincial police spokesperson Inspector James Sabau yesterday confirmed that some farmers are claiming to have been duped.
“We have attended to a number of farmers at Harare Central Police Station complaining that some of their money was unlawfully deducted by insurance companies,” he said.
Investigations revealed that farmers and the insurance companies had “entered into an agreement” allowing the latter to deduct funds from their tobacco sales. Insp Sabau said farmers were being approached by the insurance agents who asked for their growers’ numbers and banking details, among other details.
“They pretended that (the companies) would organise inputs like fertilisers, insecticides, cattle fattening schemes and insure their cattle and tobacco,” he said.
Insp Sabau said the agents visited rural areas and made farmers sign forms. These forms are not explained to the farmers.
“Now some of their money is being deducted, resulting in the farmers raising some queries,” he said.
One farmer reportedly lost US$1 000 to an insurance company. Another farmer, according to Insp Sabau, was recently refunded. He said police visited the auction floors in Harare carrying out awareness campaigns. Insurance officials at the auction floors said they only deduct money from farmers after signing agreements. One official from an insurance company said farmers used to pay six percent of every tobacco sale.
“We have revised to charge a flat fee of US$150 per hectare,” he said.
Other insurance companies are charging five percent of the total sale of tobacco. Most insurance companies are offering insurance cover against fire, theft, hailstorm, windstorm, lightning, wild animals and accidents during transportation of the crop to the auction floors. Tobacco growers however, complained that the charges were too high and eroded their profits. Mr Edward Chinoda of Karoi said insurance companies bring forms to the rural areas encouraging them to sign the agreements.
“TIMB should ban this conduct. Farmers who want to insure their crop should visit the company offices instead of concluding deals under a tree,” he said.
“We have had cases where farmers have their crops destroyed by hail and few have been compensated. It is so difficult to convince the insurance companies when claiming money.”
Farmers also said they were not aware of procedures to claim their money. Boka Tobacco Floor spokesman Mr Moses Bias said farmers can approach the TIMB for information.
“We get all the information from the TIMB and we just use the information.
“We do not have the authority to stop the deductions but we are still working out a way to assist farmers who have their money deducted without them having signed such agreements.”
TIMB chief executive, Dr Andrew Matibiri said farmers entered into agreements with companies without fully understanding the contracts.
“Insurance companies submit signed certificates and the money is deducted through a stop order system.”
He said TIMB had to intervene and urged insurance companies to charge a fee per hectare than to charge a percentage on every sale conducted.
Online Reporter