January 29, 2007

Singapore company offers bird flu insurance to poultry and meat suppliers

With bird flu making a comeback in South-east Asian countries, a company in Singapore is offering insurance against bird flu for the country's poultry meat and egg suppliers.

NTUC Income, the insurance arm of the government-backed union has introduced a new insurance policy for the 10 chicken slaughterhouses, four duck slaughter houses and five egg farms in Singapore.

Half the farms have signed up for this new insurance policy, which protects them against losses in the event of a bird flu epidemic.

The coverage would include loss of chickens and eggs due to culling by the authorities, drop in business or profits resulting from a ban of products from its supply partners; and compensation for accidents, injuries or diseases to employees.

According to insurance brokers, bird flu poses a very catastrophic risk and in the local market, no other insurer would have underwritten the same coverage.

Singapore imports most of its live poultry from Malaysia, where bird flu was reported in ducks last year, causing Singapore to ban live duck imports from the state affected.