Brac Bank Limited and Green Delta Insurance Company Limited recently signed a memorandum of understanding to offer microinsurance services to livestock farmers in rural areas.
The initiative is supported by the Switzerland embassy through its microinsurance market development programme (BMMDP/Surokkha) managed by Swisscontact, said a press release.
While the bank is to mobilise at least Tk 15 crore (1.8 million Swiss franc) through tailor-made loan products, the insurer will provide the microinsurance services.
The microinsurance will cover both the asset (livestock) and liability (outstanding loan amount) in case of death or permanent disability of the insured cattle.
The project will facilitate approximately 600 farmers with a unique cattle outreach of 1,600. The project is also expected to reduce the vulnerability for 6,000 farmers through complementing livestock extension services.
Syed Abdul Momen, the bank's deputy managing director, and Syed Moinuddin Ahmed, the insurer's additional managing director, signed the MoU at the bank's head office.
Selim RF Husain, managing director and CEO of the bank, Corinne Henchoz Pignani, deputy head of cooperation at the Switzerland embassy, Syeda Zinia Rashid, senior programme officer, and Mujibul Hasan, country director of Swisscontact, were present.
Farzanah Chowdhury, managing director and CEO of the insurance company, joined virtually.