Agric-Tech Investors Not Covered By Our Insurance Policy-Leadway Assurance

Leadway Assurance Company Ltd has denied having any contractual obligation that covers defaults of investment returns payable to the investors of the 339 Agric- Tech Platforms under its cover.

The insurance company made this known in a statement titled, ‘Our Position: Delayed Agric. Investment Returns.’

The reaction of the insurance firm follows the defaults of payments of returns on investors by some of the Agric- Tech platform partners.

The firm is into insurance partnership with  NIRSAL Plc, Requid Technologies Ltd and Thrive Agric Ltd among others.

Leadway said, “Following recent enquiries we have received on the delay on the part of some of our agric. tech partners to meet up with the obligations to their investors, we use this medium to clarify and put in proper perspective the terms of our contractual relationship with our agric. tech partners. 

“Our contractual obligation is limited to the Agric Tech Platform and not their individual investors. 

“Leadway only provides insurance cover for the farm assets of its insured agric platforms. 

“This, therefore means that we only provide cover using our agric based insurance solutions for the risks to the insured farms and other farm assets against perils stated in the insurance policy document issued.”

The firm had in 2018 said it does not in any way guarantee the safety of investors funds if lost due to agri-business failure.

The Managing Director, Leadway Assurance, said Oye Hassan-Odukale was quoted in the statement to have said that the company’s insurance policy covers
the cost of production also known as the economics of production for insured agric projects.

He said, “Leadway Agricultural Insurance policies do not provide cover for the investment returns value assured by the Agri-tech farms.

“For emphasis, it is the cost of production also known as the economics of production for these insured Agric projects that are covered,”