MoU inked to introduce crop insurance for farmers
Green Delta Insurance Company Limited (GDIC) and Bangladesh Institute of ICT in Development (BIID) recently signed a MoU to introduce crop insurance in Bangladesh.
"Farmers in Bangladesh suffer crop damage due to natural disasters and the impact of climate change which elicit huge financial losses every year. To reduce the risk of the farmer's vulnerability and cover their financial fatalities, our company signed a MoU with Bangladesh Institute of ICT in Development (BIID) which will eventually lead to introduce crop insurance in Bangladesh," a GDIC official told the FE.
GDIC and BIID put a thrust on integration of ICT (Information and Communication Technology) in the area of crop insurance at different level including data management and service delivery (like premium collection, notification & confirmation)to promote crop insurance and address some of the major challenge exists in this field.
To achieve the goal, GDIC and BIID understood their respective strength and intendedto develop a collaborative effort to work together through developing a StrategicPartnership and sign a Memorandum of Understanding (MoU). The partnership is based on their specific roles as identified in this MoU.
Crop insurance will help the marginal farmers to be better prepared to cope with the increased risk of crop damage. Industry insiders said although crop insurance cannot increase yield directly, it ensures that the farmers can cultivate properly in the next season after the disaster.
Traditionally, government's effort to manage the natural disaster revolved infrastructural measures such as embankments, shelters and post disaster relief measures, etc. The Ministry of Environment and Forest suggests crop insurance so that marginal farmers can be better prepared to cope with the increased risk of crop damage.
"GDIC believes, with proper planning and execution it is possible to improve the livelihood of farmers. As a component of this contemplation, GDIC is now taking the initiative jointly with BIID to introduce Crop Insurance in Bangladesh".