Benefits of crop insurance to farmers and how to access it

A Two In One Cover

Crop insurance is purchased by agricultural producers, and subsidized by the federal government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities.

Agriculture is synonymous to disasters and risks beyond our control, thus necessary to take precautionary measures to control damage faced by farmers. The AZ Crop and Micro Health insurance plan assists in the stabilization of crop production and reduces the negative impacts disaster may cause in the lives of the farmers. Considering the current scenario of unpredictable weather, crop insurance has become a necessity for farmers.

The AZ Bundle is an insurance package innovated by aimed at providing farmers and their family members with micro health insurance at only UGX 37,000/= per acre each season and only UGX 12,000/= for additional acres of land with numerous other benefits like life cover as stated in the advantages.

About 60 percent of Uganda’s population is engaged in agriculture, forestry and fishing hence depending on it. According to a report from the Food and Agricultural Organization of United Nations (FAO), agriculture is the single most affected sector by droughts, absorbing on average about 84 percent of all the economic impact.

This situation is expected to worsen unless effective measures are taken to protect the agriculture sector. With the increase in population, there is immense pressure to increase food production, boost security and protect farms.

Advantages of crop Insurance.

  • Crop insurance aids in poverty reduction; Farmers who take crop insurance protect their crops from unforeseen setbacks. Considering that majority of the farmer livelihood is dependent on the quality and quantity of the yield they produce.
  • It protects the farmers against losses caused by crop failure. It acts like a tool that allows farmers to manage their yield and price risks.
  • It enables farmers to repay back debts easier in times of crop failure which also strengthens the position of co-operatives and other institutions that finance agriculture. The AZ bundle provides a life cover of UGX 5,000,000 in case of life loss that can aid in loan repayment.
  • Crop Insurance protects farmers against production loss of crops. It also offers preventive planting and replant security thus boosting the farmer’s production.
  • By protecting the economic interest of the farmers against possible risk or loss, it accelerates adoption of digital agricultural practices
  • The AZ Bundle insurance package provides farmers with weather forecast information to help them understand what crops they can consider for particular seasons which also gives a farmer PEACE OF MIND. “Knowledge is power when put to use”
  • Each year, there are new technologies invented to help farmers get more produce from their investments. The Micro health insurance cover that comes with the AZ bundle enables farmers to not worry about the emergency funds for health care hence giving them easy access to health care.
  • The micro health insurance bundle provides the mother and father a compensation of UGX 300,000/= each and UGX 150,000 for each of the four children in the family.


Since the major impact of the natural disasters affect farmers with limited means in developing countries, it is necessary to use data, technology and financial services to solve climate related challenges.

Farmers in Uganda can access the AZ Bundle by dialing *217*111# on MTN and Airtel networks, follow prompts and feel at ease with the unpredictable weather.

Visit for more information on a number of solutions such as the Financial Inclusion for farmers and Digital agriculture.

Share your thoughts:

What do you think of the AZ Bundle and how else can crop insurance be developed?

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