The Financial Sector Deepening Uganda (FSDU), a company committed to promoting greater access to financial services and reducing financial exclusion in Uganda has called farmers to start insuring their agribusiness using micro insurance.
Micro insurance is a mechanism designed to protect low income earners against risk like accident, illness, death in the family, natural disasters among others in exchange for regular premium payment proportionate to the likelihood and cost of the risks involved.
The partner support specialists at the Financial Sector Deepening Uganda Joel Muhumuza said that farmers should have this type of insurance as protection against losses brought by disasters to avoid having permanent losses.
Mumumuza noted that if farmers especially those engaged in Agribusiness do not take up micro insurance, when their crops or livestock are hit by disasters they lose further confidence to invest in agribusiness production .
Under the micro insurance, a farmer who takes up this insurance policy when his or her crops are damaged by the weather of heavy rain fall and its conformed by weather experts they stand a chance of compensated.