Oman – Launch of agricultural insurance
Tuesday, 10 24 2017, Category: Insurance and Reinsurance, Country: Oman
Oman’s capital market and insurance sector regulator, the Capital Market Authority (CMA), on Monday launched an insurance cover for farmers for the first time in the sultanate.
In the first phase, only seasonal crops such as vegetables and fruits will be covered under the agriculture insurance policy. However, in later phases the insurance cover would be extended to other allied activities such as beekeeping, livestocks, fishing and date plantation.
A launch ceremony was held at the InterContinental Hotel under the auspices of H E Dr Fuad bin Jaafar al Sajwani, Minister of Agriculture and Fisheries, in the presence of representatives from agriculture and insurance sectors. The event was organised jointly by the CMA and Oman Reinsurance Co (Oman Re).
Agricultural insurance policy will provide a safe investment environment for agriculture and animal wealth by providing the insurance cover that protects farmers against risks and maintains good levels of production.
“Initially, farming activities such as seasonal fruits and vegetables would be provided protection,” H E Abdullah al Salmi, executive president of the CMA, said while speaking to reporters at the event. He said farmers will have an option for either seeking protection for production cover or against fluctuations in the prices.
Under this agriculture insurance policy, all major threats to crops including natural fires and lightning, floods, hailstorms, and cyclones are being covered.
It would also provide protection against pest attacks with certain conditions.
Ahmed Ali al Maamari, vice president - insurance sector at the CMA, said that four insurance companies namely, National Life & General Insurance, Dhofar Insurance, Al Madina Takaful and Arabia Falcon Insurance, are offering insurance cover for farmers. These insurance schemes are reinsured with Oman Re, which again would seek reinsurance from foreign companies, he added.
Maamari said that farming has gained importance in the past few years in Oman and the availability of insurance cover for agriculture would help attract more investments in the future. Once the insurance cover is available, banks would also be interested in financing such activities, he added.
Source: Muscat Daily