1. What is NAIC?

Ans:
It’s the Nigeria Agricultural Insurance Corporation. The agency that operates. The Nigeria Agricultural insurance Scheme (NAIS). Its primary mandate is to provide insurance cover to all categories of farmers, namely – small, medium and large scale holders, either in groups or as individuals.

2. Who owns NAIC?

Ans: 
NAIC is wholly own by the Federal Government of Nigeria. It was establish in 1987 to provide risk cover to Nigerian farmer’s .it is also the only existing insurance company owned by the Federal Government due to it unique socio –economic benefits to the populace.

3.   What informed the establishment of NAIC?

Ans:
The scenario before the advent of NAIC was such that farmers kept suffering losses on their investment on seasonal basis with no means of going back to production . Such farmers, having lost hope of going back to production, started moving into cities in droves in search of easy means of livelihood. This situation led continually to the depletion of farming populace, a clear threat to food security. The Federal Government therefore took a careful look at the situation and decided to establish NAIC to address the dangerous trend.

4. What are the objectives behind establishing NAIC?

Ans:

These includes:
The broad objective of the Nigeria Agricultural Insurance Scheme (NAIS) is to protect the Nigerian farmer from the effect of natural hazard by introducing measure which shall ensure a prompt payment of appropriate  indemnity (Compensation) sufficient to keep the farmer in business after suffering a loss.

 The Scheme was specially designed to:  

  .  Promote Agricultural production since it would enhance greater confidence in adopting new and
     improved farming practices and at the same time bring out greater investment s in the agricultural
     sector of the Nigeria economy thereby increasing the total agricultural product;

  .  Provide financial support to farmers in the event of losses arising from agricultural disasters;

  .  Increase the flow of agricultural credit from lending Institutions to farmers;

  .  Minimize the need to eliminate emergency assistance pro vided by Government during period of
     Agricultural disaster.  

5.     What is the primary mandate and role of NAIC?

Ans:
The primary mandate of NAIC is to operate the Nigerian Agricultural Insurance Scheme (NAIS). The scheme is a mechanism put in place to shield farmers from the effect of natural hazard which as been the bane of the Nigeria Agriculture. The role of NAIC in the development of the Agricultural sector is therefore indispensable. NAIC is as important to the farmer as fertilizers or other such inputs.

6.   Does NAIC offer relief materials to people in the event of natural disaster?

Ans:   
Relief  material s are only offered by the National Emergency Management Agency (NEMA). However insured farmers are offered monetary compensation for their losses. This monetary compensation is called indemnity/claims in the insurance parlance.

7      Does NAIC grant loans to farmers?

        Ans.
       No. NAIC does not grant loans to farmers, rather, NAIC provides insurance cover and risk advisory
       services on insured projects. The Nigeria Agricultural cooperative and Rural Development Bank (NACRDB)
       and other financial institution to grant loans to farmers .These loans are, in turn, insured by NAIC. Infact
       it is compulsory to insured such loans with the corporation. 

8.   What is the difference between the agricultural Credits GUARANTEE SCHEME OF THE CENTRAL BANK OF Nigeria and the Agricultural insurance Scheme   being implemented by NAIC?

Ans.     
The agricultural credit guarantee scheme is a mechanism set up by the government to encourage bank /financial institution to lend to agriculture.   Any loses incurred by the bank through an irrecoverable capital, etc is made good by the ACGS. However, NAIC is set up to ensure that the farmers ,having suffer any loss , is return back to production ,their by enabling him to pay back his/her loan to the financial institution. So, ACGS  is  responsible to the bank/ financial institution   while NAIC is directly responsible to the farmers .

9.     Does NAIC train farmers or offer extension service to improve farmer’s capacities?

Ans:  
This is one area NAIC has continued to endear itself to the farmers. Periodic Visits are carried out by the official of the corporation to insured projects.There officials who are experts in their different fields of study include veterinarians, agronomists, and other such experts. During there visits, farm advisory services are out, not only on the insured project but also those in the vicinity of the insured ones. Some farmer not yet under the cover of the corporation has continued to applaud this gesture on the part of the corporation.

 10.   What is unique about NAIC? In other words, what is the difference between  NAIC and other insurance firms?

Ans:   
For one, NAIC is wholly own by the Government, Secondly, NAIC is the sole  underwriter of agricultural risks. In operating the national agricultural insurance scheme, the premium due is subsidize to the tune of 50%. This means that the farmer pays 50%whiole the federal government and the state government (where the project is located) pays 37.5% and 12.5% respectively.

 11.     Does NAIC also underwrite policies in general business other than Agricultural  insurance? What inform this experiment and what is the response like so far?

Ans:     
Yes , NAIC underwrites policies in general businesses such as fire, burglary ,workmen  compensation, motor marine (haul and cargo ),Goods in transit,     performance  Bond ,etc .The enabling act of the corporation empowers it to underwrite  all these other classes  of businesses except aviation and life.

12.        What has been the response of NAIC,s  clientele to its service delivery over the years ?

Ans:
Majority have continued to express satisfaction and confidence in the ability of the corporation to effectively shoulder their risk

 13. Is the corporation adequately capitalized and equipped in teams of personnel to widen its scope of operations?

Ans:
NAIC is fully capitalized to for its current operations and any future challenges of expansion.

Furthermore, the corporation parades array of some of the best professionals both in the conventional business and agriculture insurance section these include seasoned and professional underwriters, veterinarians, agronomists, etc.

14. A lot of people have misgivings about taking Insurance policies because of the belief that the Firms either renege or are reluctant when it comes to settlement of claims. How prompt are claims Settlement in NAIC?

Ans:
Settlement of claims in NAIC Is very prompt. In fact, reported claims are promptly verified. If correct documentations are carried out, claims are adjusted within a maximum of 30 days, while claimants receive their claim cheques Within 24 hours of signing the discharge vouchers.

15 . What aspect of subsidy does NAIC offer to farmers generally?

Ans:
NAIC offers the best subsidy to farmers as far as agriculture is concerned in Nigeria. Farmer pay only half of the premium due on subsidized items. This subsidy has continued to bring immense benefits to farmers as it cannot be diverted by any means. It is one unique subsidy that has continued to reach the Intended beneficiaries, that is, the farmers.

 16.        How does NAIC source its funds for its operations?

Ans:    
NAIC sources it funds from premium I generation; subsidy paid by government, and returns from its Investments.

17.        How many branches doe NAIC have in the country?

Ans:    
NAIC has branches in all state capitals, except Bayelsa. The office is expected to be opened any moment from now.
 

 18.        What is the relationship between NAIC and NACRDB .

Ans:
The relationship between NAIC and NACRDB is a complementary one. For one, they are two sister-organizations under the Federal Ministry of Agricultural and Water Resources. Another is that they work hand-in-hand to uplift the lot of the Nigeria farmers. While NACRDB gives the loans, NAIC insured the loans so given. In case misfortune befalls the project, NAIC pays complementation to the farmer to enable him/ her go back to production at the due season.

19.        Who can take a NAIC cover?

Ans:    
All beneficiaries of Agricultural credits facilities, especially, those on items insured by NAIC must insure their projects with NAIC to forestall any loss to their hard-earned investments.
 

 20.        What Volume of agro-investment can attract a NAIC cover?

Ans:    
This varies with projects. The Corporation can cover a project of sum insured of as low as N10, 000.00

21.        Which other agency of Government, apart from NAIC, covers agricultural risks?

 Ans:
None.

22.        How can farmers get covered by NAIC?

 Ans:
Visiting of the prospective insured to the nearest NAIC office.

·       Collection and completion of relevant proposal form

·       Pre-Insurance Inspection of the farm by NAIC officials

·       Payment of premium by insured and issuance of premium receipt by NAIC

·       Issuance of policy documents.

23.   If there is claim under the policy year, what are the benefits to farmer in following year? Any repayment of premium.

Ans:
There are no-claim discounts on the policy when it is renewed, however, there is no repayment of premium paid.
 

Back to top of page