Green Delta settles claims of 1000 farmers in Chitalmari, Bagerhat

Green Delta Insurance Company Limited, the leading non-life insurance company of the country is engaging International Finance Corporation (IFC) to provide the services for development and deployment of insurance products to address weather-related risks faced by both lenders and farmers in Bangladesh. It will also strengthen technical and financial capability to administer the insurance products that will eventually help remove the constraints of credit expansion to farmers. The project aims to conduct pilots projects in various areas on various crops in Bangladesh.
Green Delta will improve index insurance products through enhanced technologies; Loss assessment using parametric index solutions; and automation of claims settlement processes. The project will contribute to a reduction of farmers' vulnerability to financial distress, and an increase in lending to farmers via an improvement in the risk profile of agricultural borrowers. Moreover, the aggregators of agriculture field in Bangladesh will also get benefit from the project by taking adequate support from Green Delta Insurance Pilot Project. The areas are: Madhupur, Tangail, Chitolmari, Bagerhat and Muktagacha, Mymensingh. Bangladesh is a land of green and more than 47.5 per cent are involved in Agriculture. Contribution of major sectors in GDP FY 2015-2016 are: Agriculture 14.77 per cent, Industry 28.77 per cent, Service 56.46 per cent. Source : Bangladesh Bureau of Statistics.
Weather Index Insurance implementation Green Delta is using the Data Base based 35 years’ historical data of Bangladesh Meteorological Department, along with the support of IFC.
GDIC started it's pilot project In the in Modhupur, Tangail area on Cassava for the first time in Bangladesh and southern belt of Bangladesh, specifically in Chitalmari, Bagerhat. Green Delta is working with Renaissance Enterprise for weather index based insurance of seasonal vegetables like Tomato, Cucumber and Bitter Gourd farmers. GDIC is also working with Supreme Seed Company Limited in Mymensingh for area yield index insurance for hybrid rice seed. We have experienced various weather events and nature calamity effects on crops production. For sustainable product we have done FGD, Awareness and Feedback session with the grassroots level farmers and distribution network. Even after designing the products, GDIC took feedback from client and develop product on the customer demand. Other then the pilot products tested, we have also designed couple of products on Cucumber and Ground Nut, Maize, Rice, Bitter Gourd, Potato, Mugbean etc. for Barisal, Rangpur and Lalmonirhat, Jessore, Shariatpur, Patuakhali areas. We have also done FGD on those areas and get the client feedback and expecting to start pilot in the near future on those. We have tested various pilot products on various crops in various areas of Bangladesh.
In January 2016, Green Delta Insurance Company Limited launched weather index based insurance for Cassava farmers in Modhupur, Tangail and Tomato farmers in Chitalmari, Bagerhat. The policy included coverage for unseasonal rainfall and low temperature. Five per cent claims were provided to the farmers for excessive rainfall during the period for the Tomato farmers in Chitalmari, Bagerhat. It may be mentioned here that the entire claim settlement process was automated and interpolated weather data from our BMD and Skymet were used to determine the extent of the damage caused by unseasonal rainfall. Interpolated data point located in Chitalmari, Bagerhat, Khulna (GPS is 89.9, 22.8). If this data is unavailable within 15 days of the end of the insured period, then the back-up data source can be used. Daily weather data from BMD weather station in Khulna, was obtained from the Storm Early Warning Center of the BMD.

Green Delta has also conducted two awareness programmes in Bagerhat - one in Chitolmari and the other one in Khasherhat. Each programme was attended by more than 150 local vegetable farmers. We have also done 31 Yard Meetings in eight places of Chitalmari area covered over 1100 farmers.
Green Delta Insurance settled a claim of 1000 farmers in Chitalmari, Bagerhaat. The 1000 tomato farmers were insured through Renaissance Enterprise. In the previous year the claims of 300 farmers were settled. Green Delta's Weather Index Based Agri Insurance is the first of its kind in Bangladesh insurance market. IFC, World Bank, BFP-B Challenge Fund and DAI-AVC USAID are partners in this pioneering initiative as they are providing technical support and capacity building.
Chief guest of the cheque handover ceremony was M A Mannan, State Minister, Ministry of Finance. Special guest was Shafiqur Rahman Patwary, Chairman, Insurance Development and Regulatory Authority Bangladesh (IDRA). Guest of honour of the event was Gokul Chand Das, Member, Insurance Development and Regulatory Authority Bangladesh (IDRA).
Speaking on the occasion, Mr Mannan said, "Agricultural insurance is an innovative idea. If pioneers like Green Delta Insurance are able to take it forward, then the farmers will be assured of their golden yield. The insurance industry will be able to play an important role in the country's economy."
Mr Patwary said, "Green Delta Insurance has created an instance with this settlement of claim of 1000 farmers. This will help increase the confidence of clients on the insurance sector."
Managing Director & CEO of Green Delta Insurance Ms. Farzana Chowdhury ACII (UK) and Founding Managing Director and Advisor of Green Delta Insurance Nasir A. Choudhury were also present at the ceremony.