Thrive Agric drama: We only insure the farms, not funds of individual investors – Leadway Assurance

Leadway Assurance, the insurance company in charge of Thrive Agric’s farms, said that its services do not cover individual investor’s funds, but only the insured farms and other farm assets.

This was disclosed by Leadway in a statement on Tuesday evening after Thrive Agric’s Investors called out the company and its insurers over delayed investments.

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To whom it may concern pic.twitter.com/X9po7I1LsL

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— Tunji Andrews (@TunjiAndrews) October 6, 2020

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Backstory

Nairametrics earlier reported that a Thrive Agric investor known on Twitter as theprincelyX, took to the social media platform and called out to the company for holding on to his investment returns. He claimed the company owes him almost a million naira, and he has been told to wait till next year to see returns on his investments.

“Thrive Agric is owing me almost a million naira. They are owing other investors millions. Thrive Agric is telling me to wait till 2021 to get my investment that was due in Sept 2020,” the investor tweeted.

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Thrive Agric, however, responded in a social media statement that the delay “is an unfortunate outcome of the COVID-19 pandemic and its consequent restrictions on physical access to farms and farming markets. Like many other businesses, we were not fully prepared for the impact, and despite the intent upon which this company has been run for the last 3 years, our subscribers now bear the brunt of these challenges with us.”

Leadway’s position

In today’s statement, Leadway Assurance said,

“Our contractual obligation is limited to the agric tech platform and not their individual investors.

“Leadway only provides insurance cover for the farm assets of its insured agric platforms

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“This, therefore, means that we only provide cover using our agric based insurance solutions for the risks to insured farms and other  farms assets against perils stated in the insurance policy document issued.”

What this means

The funds of the individual investors were not covered by the Insurance company, as the investors erroneously believed. This simply means getting their returns on investment is largely at the mercy of Thrive Agric. It is left to be seen how this unfolds in the coming days, as we monitor the situation closely.