Insurance concerns

Agriculture Reporter
The Tobacco Industry and Development Support Institute has raised concern over the legal framework guiding the insurance of tobacco. This comes after several reports by farmers of insurance companies breaching contracts while on the other hand companies have complained of side marketing. Tobacco growers allege that most insurance companies are efficient in collecting payments but take long to compensate farmers in terms of disasters affecting their crop.

TIDSI executive director Mr Jeffrey Takawira said the increase in tobacco growers had also seen a boost of insurance companies.

“While this growth can be celebrated in both sectors, it has brought with it a host of other challenges. Cases such as side marketing, non-payment of claims and premiums, abuse of growers’ numbers and the stop order facility have increased,” he said.

Mr Takawira said the stop order facility needed immediate attention as some farmers were evading payment of bills using the system.

“Lack of transparency and accountability between parties has developed into a spirit of mistrust leading to some bad publicity for the insurance sector lately. The general market observation is that many new tobacco farmers have not fully embraced crop insurance,” he said.

As a result some insurance companies were threatening to completely withdraw from funding tobacco, posing a danger to the sustainability of the agricultural sector.