GAIP pays claims to Premium Foods Limited

The Ghana Agricultural Insurance Pool (GAIP) has announced its 2017 underwriting performance, notwithstanding challenges facing the industry, by continually showing resilience.

Going by the reports, the pool has so far insured both commercial and smallholder farmers in the Northern and Southern sectors who have cultivated 7,449.52 hectares of farmlands. These lands were cultivated by 3,989 farmers who are also insured.

Alhaji Ali Mahammad Katu, General Manager GAIP, made this disclosure while presenting a claim cheque to Premium Foods Limited, based in Kumasi, on behalf of farmers they have assisted in Accra last week.

According him, the beneficiary farmers in the Northern Sector will receive GH¢441,413 while the Scan Farms at Agogo in Ashanti Region will receive GH¢198,640.

These beneficiary farmers lost their crops through fall army worm, drought or windstorm last year. Explaining further, he indicated that Premium Farms Limited supported the farmers with preparation of farmlands, supply of improved seeds/fertilisers and market accessibility.

The General Manager therefore expressed the view that it is time for government to consider insuring farmers as a form of subsidy to reduce the risk in farming.

Madam Gladys Simpson, who received the cheque on behalf of Premium Foods Limited, stated that her company had insured 338 hectares of land out of which 112 hectares were destroyed through natural disaster. She therefore explained that because of the risk associated with insurance in the agricultural sector, the company scaled down its farm goods from 25 to five.

“I am confident that with the introduction of GAIP to the company we will scale it up again.”

GAIP Performance – 2017 Underwriting Year
Total Area Insured (Hectares) 7,449.52
Total Number of Farmers 3,989.00
Total Sum Insured (GH¢) 18,575,213.53
Gross Premium (GH¢) 353,100.87
Reinsurance Premium (GH¢) 210,730.57
GAIP Net Premium (GH¢) 176,154.15
Total Claims (GH¢) 3,055,214.15
GAIP’s Portion of Claims (20% 612,153.17
Reinsurance Portion of Claims (80%) 2,442,060.98
No. of Farmers for payouts (including Commercial Farmers) 1,847


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