Last year’s drought affected many parts of the country and that meant insurance companies were forced to pay claims.
Oromia Insurance Company SC (OIC) revealed that 380,000 birr was paid out in claims to farmers whose crops were damaged.
The payments were made to 400 farmers living in the two kebeles of East Showa zone namely; Kemo Gerbi and Dsesta Abjata. In the same manner, last year during the 2015 drought came as a result of the El- Nino phenomenon, OIC paid close to one million birr to farmers that were covered by PAA and JICA projects. From the start of the date, OIC paid more than four million birr in both crop and livestock insurance.
In the current year OIC sold 44,479 policies in Weather Index Crop Insurance (WICI) covering staple crops like, Teff, Maize and wheat in both projects. Currently, OIC is operating in 48 kebeles with regard to WICI. Farmers pay a minimum of 100 birr to purchase the insurance policy and the maximum has no limit. Farmers can make a decision about how many policies to purchase depending on their own farmland size and productivity from one growing season.
In 2105, in collaboration with the Federal Ministry of Environment, Forest and Climate Change under the PAA project, OIC launched its Second WICI project with the support of UNDP in Kemo Gerbi and Desta Abajata Kebeles of Adami Tullu Jiddo Kmobolcha Woreda.