Addis Ababa February 17/2017The Oromia Insurance Company (OIC) is set to pay 1.6 million Birr in livestock insurance compensation to 1,474 pastoralists in Borena and West Guji zones of Oromia Region.
According to a joint press release by Oromia Insurance Company and Kifya Financial Technologies dispatched to ENA, the beneficiaries are receiving the compensations due to the livestock loss they have sustained as the result of El Nino-induced drought in the area.
The insurance company will make the payout on Saturday to help them recover from the losses of their livestock following the drought.
Livestock insurance was introduced to Oromia pastoralists in 2012 as a pilot program through the partnership of OIC and its major partner, the International Livestock Research Institute (ILRI), which initiated the project.
In addition to paying out compensation to pastoralists who lost their livestock, the ‘greenness watch insurance’ also benefits clients whose livestock are at high risk, according to the release.
With the aim of expanding and modernizing the service by shifting from paper-based to paperless technology, OIC has recently partnered with Kifiya Financial Technologies to modernize the payment system, the release indicated.
In order to benefit from OIC’s livestock insurance, a pastoralist is expected to pay a premium rate between 7 to 11% the value of the forage the livestock feeds in one year of the two dry seasons, the release said.
So far a total of 4,588 pastoralists, mainly in Borena and West Giji zones of Oromia Region, are covered by OIC’s livestock insurance. The payout next Saturday is the 4th round since OIC launched the policy in 2012, the release said