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.
Coverage Options
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, temperature) rather than actual farm assessment. Faster, more efficient for smallholders.
How it works:
- Policy defines weather “trigger” (e.g., 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, 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 breeds
- Poultry: Commercial layers and broilers
- Goats and sheep: Dairy and meat breeds
- Pigs: Commercial operations
- Exotic animals: Ostriches, rabbits (specialized policies)
Livestock Production Insurance:
Beyond mortality, covers production losses:
- Milk production decline from disease
- Weight loss due to illness
- Veterinary treatment costs
- Emergency transport to veterinary facilities
Agricultural Equipment Insurance
Protects valuable farm machinery and equipment essential for modern agriculture.
Coverage includes:
- Tractors and combines: Damage, theft, breakdown
- Irrigation systems: Pumps, pipes, sprinklers
- Storage facilities: Silos, cold storage, warehouses
- Processing equipment: Mills, dryers, graders
- Greenhouse structures: Damage from wind, hail, collapse
- Transport vehicles: Farm trucks, trailers
Aquaculture Insurance
Specialized coverage for fish farming operations.
Coverage includes:
- Fish mortality from disease, pollution, oxygen depletion
- Pond structure damage
- Equipment breakdown (aerators, pumps, filters)
- Theft of fish stock
- Water contamination
Farm Buildings & Structures
Property coverage for:
- Farmhouses and worker housing
- Barns and animal shelters
- Storage buildings and sheds
- Fencing and gates
- Solar installations
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
Agricultural claims require prompt action:
- Immediate Notice: Report loss within 72 hours of occurrence or discovery. For widespread events (drought, flood), general notice suffices initially.
- Preserve Evidence: Don’t 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: 10-15 days after season end
- Crop assessment claims: 4-6 weeks after harvest/assessment
- Livestock claims: 3-4 weeks after documentation received
- Equipment claims: 2-3 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 (3-5 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/year)
- Storage and security
- Maintenance records
Cooperative/Group Policies:
Contact us to discuss group arrangements for farmer cooperatives, out-grower schemes, or agricultural development projects.
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Contact
- Dar es Salaam, Tanzania
-
+255 22 292 6564
+255 22 292 6563 - info@albarakatakaful.co.tz