State minister for the Ministry of Fisheries and Livestock Md Ashraf Ali Khan Khasru inaugurated the program at a ceremony at the Pan Pacific Sonargaon hotel
BRAC Bank and Green Delta Insurance Company yesterday jointly launched the country’s first-ever livestock insurance coverage facility for cattle farmers.
State minister for the Ministry of Fisheries and Livestock Md Ashraf Ali Khan Khasru inaugurated the program at a ceremony at the Pan Pacific Sonargaon hotel.
BRAC Bank Managing Director and CEO Selim RF Hussain and Green Delta Insurance Company Managing Director and CEO Farzanah Chowdhury were present.
The scheme will immensely benefit the cattle farmers as it aims to mitigate the risk of livestock loss caused from accidental deaths, diseases, partial disability or even death during calving.
This is a pilot project for one year. The insurance coverage will be given to 400 cattle farmers. The premium is 3% of the potential cost of livestock to be paid once a year. In future, the premium rate would be reduced, said the organizers.
The new facility is a part of the two organizations’ continued commitment to bringing in innovative products for their valued customers. Green delta will introduce a system of NFC enabled collar tag for insured cattle for the purpose of identification and smooth claim settlement.
The initiative is supported by BFP-B (Business Finance for the poor in Bangladesh) challenge fund, a project of DFID, and managed by NATHAN associates, London.
Khasru said this was a good initiative for cattle farmers but banks should bring down their lending rate to single digit and scrap compound interest rate. The insurance companies should emphasize quick claim settlement, he added.
BRAC Bank Managing Director Selim RF Hussain said that since its inception, BRAC Bank had a particular focus on SME financing with a broader vision of financial inclusion and pro-poor growth.
This innovative facility with the help of technology bore testimony to the bank’s commitment to inclusive banking, especially for small and marginal farmers, he added.
“This insurance coverage will boost the country’s cattle rearing sector and encourage more people to start the farming commercially on a bigger scale. It will be an important tool for poverty alleviation and job creation, particularly in the rural areas as it safeguards the interest of the farmers,” he added.
Green Delta Insurance Company Managing Director Farzanah Chowdhury said: “Green delta insurance company is excited to roll out the country’s first-ever insurance coverage facility for the cattle farmers. I believe this will encourage more farmers into the business adding vitality to rural economy. We have developed an easy, simple and faster claim settlement process that will help the cattle owners. As a pioneer in insurance industry, we will continue to introduce innovative products to cater to the needs of the businesses.”
Syed Abdul Momen, head of SME banking of BRAC Bank, and Syed Moinuddin Ahmed, additional managing director of Green Delta Insurance Company, were also present.