Drought insurance gurus jet in Malawi for discussions
Drought insurance officials will be jetting in the country next week to discuss with the Malawi government why they are refusing to pay drought insurance cover despite harsh weather last year, Minister of Finance, Economic Planning and Development Goodall Gondwe has said.
Gondwe was speaking in parliament on Wednesday after the back benchers queried the government why the government was not getting the insurance cover money.
The Finance Minister said the government had been paying US$4 million.
“They are saying that they cannot pay us the money because the weather did not change last year. Their argument is that we have had similar weather patterns for two consecutive years, therefore we do not qualify for the insurance cover,” said Gondwe.
He said the government will press for the payment of the money when the insurance officials come into the country next week.
Gondwesaid after Malawi, the officials will visit Zambia which is facing a similar problem.
He said there are several countries in the region who are facing similar problems.
Finance Minister however said the government will not pull out of the insurance cover but will continue discussing with the insurance firm.
Malawi has been hit by drought for two consecutive years due to El Nino weather phenomenon.
