The Area Yield Index Insurance (AYII) Payout Ceremony, a momentous event celebrating the approval and disbursement of successful crop claims, took center stage in Lahore on 8th December 2023. The event was hosted by TPL Insurance, where crop claim payouts of total PKR 17.5 Mn were made to The Bank of Punjab farmers of Pakpattan for their loss crop yields.
The ceremony was successfully attended by all insured farmers along with Muhammad Aminuddin – CEO TPL Insurance Pakistan, Zafar Masud – President & CEO The Bank of Punjab, Elise Lee – Commercial Manager Africa & Asia from PULA, Arif Nadeem – CEO of Pakistan Agriculture Coalition and other executives.
The event not only commemorated claims payments but also emphasized the critical collaboration needed between the financial sector and agricultural stakeholders in driving resilience and sustainability in the agriculture sector of Pakistan.
Aminuddin showcased the importance of Area Yield Index Insurance to make agricultural ecosystem more sustainable for farmers and empathized how pivotal it is, given the drastic climatic changes within our region. With the recent Sutlej river flooding, Pakpattan agricultural land was significantly affected, with their rice crop yield impacted by around 60%. He also emphasized his belief for prompt and fair insurance payouts to farmers and shared his insights to always promote innovative insurance models within agricultural domain.
Masud highlighted the need of public-private partnerships and the role of federal and provincial governments in advancing Area Yield Index Insurance concept. As mentioned by him, The Bank of Punjab continues to lead initiatives that empower farmers for a secure and risk free future. The bank has played an active role in the successful payout of Area Yield Insurance claims, demonstrating its dedication to support innovative solutions for the farming community.
Ms Lee elaborated on the significance of the Area Yield Index as a globally practiced method to protect farmers against low yields, providing insurance against a pre-set historical benchmark. This insurance offers protection against all natural catastrophes and biological perils that could influence the reduction of crop yields without the requisite requirement of declaration of calamity by the government.
Given the uncertain climatic changes within Pakistan, and witnessing recent mass destructions due to floods/rainstorms, Area Yield Index Insurance is the becoming most relevant solution to agricultural risks and is the prime intervention to protect our farmers. The product is more advance than standard Crop loan insurance scheme (CLIS) as it is yield based, no government declaration notification required, and more comprehensive perils included. Pakpattan farmers under AYII are highly satisfied as the same claim due to Sutlej river flooding was not applicable, had these been covered under CLIS insurance.
