Firm set to launch livestock insurance cover for the poor

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Founder and Managing Director of Coverlink Micro Insurance Abel Munhande says that livestock is one of the most important assets, and the most common store of value for communal farmers or subsistence farmers in Zimbabwe, yet very few have insurance cover for their heritage.

A 2014 Finscope Survey estimated that 70 percent of Zimbabweans do not have insurance cover.


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Munhande says Coverlink has a new product that will suit the rural community, and will not only help them secure their valued assets but will also help them to unlock the financial value of their livestock.

“Coverlink Livestock Micro Insurance Cover protects Livestock against losses due to accidental death, diseases of terminal nature, emergency slaughter on advice of a recognized veterinary surgeon and theft of livestock in raising units or paddocks.

“Livestock covered include Dairy cattle, beef cattle, poultry, pigs, sheep and goats,” Munhande said.

The product which is set to be launched in the coming few weeks, will protect, securitise and help broaden  access to financial lines for rural subsistence farmers.

This is especially important now more than ever, considering that some microfinance institutions are accepting livestock as collateral, and the Parliament of Zimbabwe is in the process of finalising the Movable Property Security Interests Bill, to pave way for the introduction of livestock as collateral.

Some banks are already ready to accept livestock as collateral, and only await the passing of the bill into an Act of Parliament.

Abel Munhande says the livestock insurance cover will help rural-based farmers and young entrepreneurs to pledge their insured livestock as collateral.

“Our insurance cover will enable financially excluded rural farmers to attach value on their livestock, helping them to have access not only to insurance but lines of credit,” Munhande said.

Munhande also said that many rural and communal farmers did not take up insurance cover for their assets due to affordability, or because they did not know where to get coverage and were not sure of the actual value of their livestock.

Munhande said  that the micro insurance firm in support of the country’s financial inclusion strategy will offer a very competitive livestock insurance product for the rural farmers at very low premiums.

“We will also use our vast network of agents and 21 branches that are scattered across the breadth and width of the across the country to make the product easily available to all farmers,” stated the founder of the first Ipec registered micro-insurance company.

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