The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Farmers yesterday said they are pinning their hopes on government-led insurance schemes to aid the sector’s recovery from future hurricanes because private companies “wouldn’t even entertain” the concept.

Lance Pinder, operations manager at Abaco Big Bird Poultry Farm, told Tribune Business that the possibility of the government developing a contributory scheme for agricultural insurance in The Bahamas would be critical due to the lack of interest from private insurers.

“They just won’t do it,” he said, “and I’ve been arguing for 20 years that there needs to be a private/public insurance programme for crop insurance because you need it. Crop and livestock are a real big problem, and I know that it shouldn’t be a freebie for the farmers.

“They should pay a premium and I think the government could get that to happen. They could either do it themselves, maybe they could get a private company to get into a programme, or they could do it through legislation if they wanted to.”

Mr Pinder was responding to assertions by Michael Pintard, minister for agriculture and marine resources, that the government is looking at options for a “contributory insurance scheme” for farmers and fishermen.

Insurance coverage for the agricultural sector has been a major challenge because underwriters fear providing coverage for crops and livestock in the storm-prone Bahamas is too great a risk and will be hugely unprofitable.

However, Mr Pintard said the government is still in discussions with regional and international organisations to develop an insurance plan for the sector based on its vulnerability to climate change and related natural disasters.

Mr Pinder said: “If the government is trying to do something then this is the first time I’m hearing about it, but I’m glad to hear that they are working on it because insurance is one of the biggest obstacles to farming in this country.”

Paul Mailis, director of the National Fisheries Association of The Bahamas, added that the concept of insurance for fishermen has been “floating around for quite some time now”, yet no administration has been able to help.

He said: “The NFA was approached just recently by an entrepreneurial insurance person who was interested in a similar concept, and actually made a presentation to the association. But it’s all about how are we going to protect the commercial fishing business.”

Explaining that this goes beyond just covering boat damage, but also “personal injuries” incurred by fishermen not on their registered boat but in the water or on another vessel, Mr Mailis said: “A lot of things are not covered under normal insurance, like my current insurance package for my commercial fishing boat. It only really insures me against damage that I may inflict on another boat, but it has nothing to do with my crew.

“What constitutes a work-related injury on a fishing boat? There are so many things fishermen do when they’re on a boat. What about when you’re off the boat that is actually insured, and you’re in one of the dinghies and you’re diving and you catch the bends?” The “bends,” or decompression sickness, are the symptoms divers experience when coming back up to the surface too quickly.

Questioning what would happen to a person in that situation if he is not on a boat that is insured, and does not have life insurance of his own, Mr Mailis asked how that diver would be covered and protected.

“It’s important and something that needs to happen, because a lot of fishermen go out of business as soon as anything serious happens to their boat or to their crew,” Mr Maillis said of insurance.

“If we pay a higher premium that should work. There is really no problem with getting insurance for your boat, but there is a problem with getting insurance for your crew. That’s the biggest problem.”