The need for a specialized Agricultural Insurance Company to provide insurance cover to farmers was informed by Government’s concern over the vacuum created due to the unwillingness of conventional Insurers to accept Agricultural risks, which they considered too risky.
This led to the establishment of the Nigerian Agricultural Insurance Scheme on 15th of November, 1987.The implementation of the Scheme was initially vested in the Nigerian Agricultural Insurance Company Limited, which was later incorporated in June, 1988 but later turned into a Corporation in 1993 by the enabling Act 37 of 1993.
Nigerian Agricultural Insurance Corporation is therefore a wholly-owned Federal Government of Nigeria insurance company set up specifically to provide Agricultural risks insurance cover to Nigerian farmers
Functions of NAIC
- Provision of premium subsidy of up to 50% chargeable on selected crop and livestock insurance policies. The perils covered under the crops sub-sector are fire, lightning, windstorm, flood, droughts, pests and diseases. For livestock, the perils under cover include; death or injury caused by accidents, disease, fire, lightning, storm and flood.
- Insurance coverage of equipment, assets and other properties which form part of the total farm investments at competitive commercial rates.
- General Risks coverage including Fire and Special Perils, Burglary, Workmen Compensation, Goods-in-Transit, Bonds, etc.
- Coinsurance Services
- Provision of extension services to insured farmers and insured projects.
- Payment of indemnity to insured farmers/clients after having suffered an insured loss.
- Encouragement of institutional lenders to lend more to agriculture through provision of added security to agricultural lending of commercial banks.
Nigerian Agricultural Insurance Corporation
Plot 590 Zone A.O. Central Area
Garki, Abuja
Nigeria
Email: [email protected]
Website: www.naic.gov.ng