Drought Agriculture Insurance in Uganda

The largest economic impact of climate change is upon agriculture. And small-holder farmers bare the biggest brunt. Agriculture Insurance protects farmers against harsh climatic conditions and they can farm well assured that come rain or shine, they will reap the fruits of their labor. Through a partnership with the Agriculture Insurance Consortium (AIC) – m-Omulimisa provides highly subsidized agriculture insurance through our network of agents. AIC is a consortium of insurance companies providing subsidized (up to 50%) agriculture insurance under the Uganda Agricultural Insurance Scheme (UAIS) a Public-Private Partnership (PPP) arrangement with Uganda Insurers Association (UIA) and Government of Uganda. The scheme was established in 2016.

What is Covered

The policy covers drought and/or excessive rainfall.

How it works

Drought index insurance monitors crop water availability to determine drought and has a linear correlation with crop yield. It is, therefore, a much more suitable indicator of agricultural drought than rainfall. The product’s Drought index insurance is based on innovative satellite technology and provides an affordable alternative to expensive traditional loss based crop insurance.

Using 33 years of Meteosat data and near real-time data reception, drought insurance indices are used to determine drought payouts per season and continuously monitor drought across Uganda. When there is a drop in the expected average yield of the district due to drought or excessive rainfall, a linear payout is triggered to the extent of the loss experienced due to the drought as monitored by the drought index.


Harvested Crops and Crops in transit; Any Crop which has been harvested prior to inspection by our loss assessor; A result of consequential loss whether or not caused by a defined peril. Where recognized good farming and harvesting practices have not been followed; Controllable diseases, weeds and/or controllable insect infestations

Crops Covered

• Coffee, Tea
• Maize
• Rice
• Beans
• Bananas
• Fruits and Vegetables
• Cotton, Oil Palm,
• Cassava
• Irish Potatoes

Premium Rates

Crop Premium Rate Yield Guarantee
Maize 5% 90%
Beans 5% 90%
Coffee 5% 90%
Bananas 5% 90%
Tea 4% (Western region) 90%
Cotton 6% (Central region) 90%
Sunflower and Oil Seeds 90%

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