Insurance experts have warned Nigerians of the dangers inherent in certain agriculture crowdfunding platforms offering unrealistic Returns on Investment (ROI).
Executive Director, Leadway Assurance Company Limited, Ms. Adetola Adegbayi, gave this warning at a virtual press conference organised by the company in Lagos.
Adegbayi noted that the responsibility of insurance companies was to insure farm assets, as opposed to the popular belief of insuring the entire amount invested in those platforms.
According to her, many people have fallen into the trap of investing their hard-earned money in such schemes, having high hopes of rather huge and unrealistic returns.
She added that such situations often led to huge losses, with those affected expecting full compensation from the insurance companies.
She, therefore, reiterated that the sole responsibility of the companies was to offer compensation for losses incurred on agricultural equipment or projects alone, and not the entire money invested.
“The total money crowdfunded is a speculative risk, insurance companies don’t insure that and so, no insurance firms would be held responsible for a loss that occurred on the entire fund.
“Underwriters only insure risks emanating from the agriculture projects,” she explained.
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