Algeria: A new insurance scheme for agricultural disasters

Jul 11, 2012

A bill on a new scheme for agricultural disasters insurance was presented to the Algerian Finance Ministry.

A bill on a new scheme for agricultural disasters insurance was presented to the Algerian Finance Ministry.

Farmers insurance can protect the farmer against losses linked to natural disasters such as floods, fire or drought.

According Benbouabdellah Abdelhakim, secretary of the National Insurance Council (CNA), quoted on June 8th by APS news agency, the insurance rate on agricultural activities is currently at just over one percent.

"Having a limited knowledge of the nature of agricultural activity, insurers offer products unsuitable for this activity at inaccessible rates to farmers, hence the lack of enthusiasm for this type of insurance," he added.

He explained that the bill includes a text that defines the term agricultural disaster, the eligibility requirements for this type of insurance and discusses the possibility of state support for the payment of the premium insurance.

Agricultural insurance should enable farmers to access credit more easily, says Touré Bassary, vice president of the West African Development Bank (BOAD), quoted by Les Afriques.

It "provides many benefits for government, banking, finance and insurance sectors and will facilitate agricultural finance activities by increasing guarantees for producers," he said, adding that it will also stabilise farmers' incomes and increase their purchasing power.ADNFCR-2976-ID-801404712-ADNFCR