Farmers Receive DK Chilala Insurance Pay Out After Erratic Rains

Over 100 maize farmers in Zambia have received insurance payouts at their local agro dealers via their mobile phones, marking the first payouts issued by DK Chilala Insurance.

This is an innovative microinsurance programme that protects farmers against drought at the onset of the season.

The payments under the DK Chilala programme were triggered when rainfall patterns for the first three weeks of the season showed to be insufficient in North Western, Copperbelt, Southern, and Northern Provinces.

“This payout is significant and a first for our small holder farmers who need a second chance by minimizing their losses on account of unpredictable weather. We keep our promises and compensate fast so that farmers purchasing early have a second chance to re-plant,” said Ndavi Muia Monsanto Zambia, Country Lead. DK Chilala is a partnership involving Monsanto Zambia, Focus General Insurance, Pula Advisors and Munich Re. The insurance programme offers farmers who purchase as little as 2kgs of seed, a free three-week drought insurance coverage at the start of the season.

The insurance policy protects their investment by estimating the rainfall during the onset of the season and uses satellite data to measure the rainfall.

Currently, only about half of Zambian farmers invest in improved seeds for their crops. A key reason for the low demand is the fear among farmers that poor conditions, such as the 2016 drought that decimated harvests and affecting livelihoods.

Ms. Catherine Kaluba a farmer in Masaiti District, said: “I am happy that I have received new seed after rain failure in my area. I am looking to plant again with the new seed and hope this time the rains will be better. Because of climate change, people should know that this is the type of farming they should embark on.” She said this was how the system is supposed to work, and that farmers should feel supported to plant with early rains and take advantage of all the rains in the season.