Drive

Product

This is a product that will provide asset protection cover that aims to keep the livestock alive and complement pastoralists savings during drought events.

The insured perils will be forage scarcity as defined by an index. The index will be based on readings from data collected from independent satellite data providers.

Index

This is a measure that compares the total amount of forage available across the contract season with the historic average forage availability of that season for that division. It measures the forage condition over a defined period, and it is calculated by using a measure of pasture availability that is recorded by satellites, called the Normalized Differenced Vegetation Index (NDVI). The index compares the observed NDVI over a particular season, with the observed NDVI over a given historical period.

Insurer

ZEP-RE is working with several insurers, who are approved financial services providers to underwrite the Benefits under this product.

Insured goods

The insured goods will be four livestock types standardized into one unit known as Tropical Livestock Unit (TLU). These are Camels, Cattle, Sheep and Goats. DRIVE IBLI sets the average value of livestock as the amount required to keep the livestock alive during the cover period as follows:

Camel – 1.4 TLU -KSH 24,029
Cattle – 1 TLU – KSH 16,820
Goat – 0.1 TLU – KSH 1,682
Sheep – 0.1 TLU – KSH 1,682
Tropical Livestock Units (TLU)

1 TLU = 1 Cow, 1TLU = 0.7 Camel, 1 TLU = 10 goats and 1 TLU = 10 sheep

Unit Area of Insurance (UAI)

UAI refers to the geographic region in which the IBLI product benefits will apply and will be determined by:

The homogeneity of vegetation conditions.
Pastoral migration patterns/extents.
Rangeland Dominance.
Forage availability.
Seasonality and Drought history.


Premiums payment and Subsidy

Individuals are responsible for paying their premiums as calculated using the premium rate for the Unit Area of Insurance (UAI) they will select. The government is subsidizing a maximum of 5 TLUs insured per person per year, however pastoralists will be encouraged to insure as many TLUs as they can afford. The level of subsidy will change as advised by the government.

Geographical coverage of index

Generally, each UAI may have different levels of forage availability or scarcity in a given season. As a result, different payouts will be made in each UAI because the payments will be based on average forage scarcity for each individual UAI. Every pastoralist within the same UAI, however, will receive the same rate of payment (if the index is below the exit level in all the UAIs).

Policy

The digital application form through USSD or agent mobile Application, the Terms and Conditions and any annexure, schedules or amendments will constitute the Policy. The DRIVE platform will digitally share important policy summary information that will constitute the proof of policy documentation. The insured can log in using USSD 8008# through the registered mobile phone number and access the policy information digitally.