Supporting Tanzania's Agricultural Future
Agriculture is Tanzania’s economic backbone, employing over 65% of the population and contributing significantly to GDP. Yet farmers and agribusinesses operate under constant uncertainty – unpredictable weather, pests, diseases, market fluctuations, and operational risks threaten livelihoods and food security. Despite these risks, agricultural insurance penetration remains below 1%, leaving millions vulnerable.
Al Baraka Takaful Agricultural Insurance brings Shariah-compliant protection to Tanzania’s farmers and agribusinesses, supporting sustainable agriculture, rural development, and national food security through comprehensive, affordable coverage.
What Agricultural Insurance Covers
Crop Insurance
Protects farmers against yield losses from insured perils, ensuring that a bad season doesn’t devastate your livelihood.
Multi-Peril Crop Insurance (MPCI)
Comprehensive protection against multiple risks affecting crop yield.
Covered perils include
Drought – Insufficient rainfall reducing yields
Excessive rainfall – Flooding, waterlogging destroying crops
Pests – Locust invasions, army worms, other infestations
Diseases – Fungal infections, bacterial blights, viral diseases
Hail and wind – Physical damage to standing crops
Fire – Uncontrolled fires destroying crops
Frost (for highland areas) – Freezing temperatures damaging crops.
Crops covered
Staple grains – Maize, rice, wheat, millet, sorghum
Cash crops – Coffee, tea, cotton, tobacco, cashews
Oilseeds – Sunflower, sesame
Legumes – Beans, peas, soybeans
Horticulture – Vegetables, fruits with specialized policies
Weather Index Insurance
Innovative, parametric coverage that pays based on weather measurements (rainfall and temperature) rather than actual farm assessment. Faster, more efficient for smallholders.
How it works
Policy defines weather trigger (for example rainfall below 300mm during growing season)
Automatic payout when trigger is breached
No farm inspection needed
Rapid settlement based on weather station data
Ideal for smallholder farmers, areas with reliable weather stations, and crops highly sensitive to specific weather parameters.
Named Peril Coverage
More economical option covering specific major risks.
Fire insurance only
Hail insurance only
Drought insurance only
Livestock Insurance
Comprehensive protection for cattle, goats, sheep, poultry, and other livestock.
Mortality Coverage
Death from disease
Death from accidents (lightning, drowning, vehicle collision)
Death from predator attacks in covered areas
Emergency slaughter for humane reasons
Theft of livestock
Livestock types covered
Dairy cattle – High-value exotic and crossbreeds
Beef cattle – Both indigenous and improved
Who Needs Agricultural Insurance?
Smallholder Farmers
Even modest farms represent significant investment and family livelihoods. Weather index or named peril coverage provides essential protection at affordable premiums, especially when accessing credit.
Commercial Farmers
Large-scale operations with significant capital invested in land preparation, inputs, equipment, and labor cannot afford total crop failure. Comprehensive multi-peril insurance is essential risk management.
Dairy Farmers
High-value dairy cattle represent major investments. Mortality insurance protects against devastating losses, while production insurance safeguards income streams.
Poultry Farmers
Commercial poultry operations with thousands of birds face disease risks that could wipe out entire flocks. Comprehensive livestock insurance is essential.
Horticulture Producers
Fruits and vegetables have high input costs and short growing seasons. Weather damage or pest outbreaks can eliminate entire investments. Specialized coverage is critical.
Coffee & Tea Estates
Perennial crops represent multi-year investments. Fire, disease, and weather damage threaten both current season and future productivity.
Agribusinesses
Companies operating plantations, processing facilities, or integrated operations need comprehensive coverage including crops, equipment, buildings, and business interruption.
Contract Farmers
Farmers producing under contract for buyers or processors often require insurance as contractual obligation. We provide certificates meeting buyer requirements.
Cooperative Societies
Agricultural cooperatives can arrange group policies for members, achieving better rates and ensuring members’ eligibility for credit and input schemes.
Benefits & Features
Claims Process Overview
Immediate Notice
Report loss within 72 hours of occurrence or discovery. For widespread events (drought, flood) general notice suffices initially.
Preserve Evidence
Do not harvest damaged crops or dispose of dead animals before assessment. Take photos documenting losses.
Loss Assessment
Our agricultural assessors visit farms to evaluate damage extent, cause, and coverage applicability.
Documentation
Provide planting records, input receipts, previous yield history, veterinary records, livestock.
Claim Calculation
Losses calculated based on policy terms, yield shortfall percentage, animal value, equipment replacement cost.
Settlement
Approved claims paid directly to farmer or to lender if loan is secured by insurance.
Required Documentation :
Crop claims
Planting records, input receipts, rainfall data, photos of damage, harvested yield if partial loss.
Livestock claims
Purchase receipts or valuation, veterinary records, death certificates, photos of deceased animals, police report for theft.
Equipment claims
Purchase receipts, photos of damage, repair estimates.
Average Settlement Time
Weather index claims: 10 to 15 days after season end
Crop assessment claims: 4 to 6 weeks after harvest assessment
Livestock claims: 3 to 4 weeks after documentation received
Equipment claims: 2 to 3 weeks
Loss Minimization Requirements
Farmers must take reasonable steps to minimize losses:
Apply recommended pest/disease treatments
Provide adequate livestock feed and water during drought
Seek veterinary care for sick animals
Maintain equipment properly
Follow good agricultural practices
Get Your Agricultural Insurance Quote
Support your farming operation with affordable Shariah-compliant coverage designed for Tanzanian agriculture.
What We Need for Crop Quote
Farm location and size (acres/hectares)
Crops grown and varieties
Planting and harvest dates
Historical yields (3 to 5 years if available)
Farming practices (irrigation, inputs used)
Sum insured / expected production value
What We Need for Livestock Quote
Type and number of animals
Breeds and ages
Individual values for high-value animals
Housing and management practices
Veterinary records
Location
What We Need for Equipment Quote
Equipment description and specifications
Purchase date and current value
Usage hours per year
Storage and security
Maintenance records