Thrive Agric might just be on the verge of collapsing as a new revelation from the agric investment startup’s insurer, Leadway Assurance, will make it difficult for Thrive Agric to survive the current financial crisis and public distrust their company faces.
According to AllNews.ng Thrive Agric which operates in farm produce – is said to be conveying false business growth in order to lure unsuspecting individuals to invest in their agric business which is not yielding profit, only to hoard the principal fund and the interests on investment when the time comes to pay up.
TopNewsNaija understands that investors have been demanding their money, and issued a 5-day ultimatum, but Thrive Agric said COVID-19 affected its operations and it can’t afford to pay investors their principal fund and interest fee until the next one year or two years at most.
Leadway Assurance Break Silence
Leadway Assurance distanced itself from claims that Thrive Agric’s farm business is fully covered by their insurance company. Thrive Agric’s selling point, just like any other agric investment startup, is that the investment of their investors are insured.
However, Leadway Assurance denied this claim, stating that investment from investors are not insured by their insurance company, as only farm assets are covered by their insurance. Leadway said their insurance duty is limited to Thrive Agric’s agric tech platform, and not extended to individual investors.
This means the funds invested in Thrive Agric is not insured by Leadway Assurance, therefore, the principal payment made by investors is not covered by insurance, “Leadway only provides insurance cover for the farm assets of its insured agric platforms.
“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.”
“As we have stated repeatedly, Leadway Assurance does not in anyway guarantee the safety of investors funds if lost due to agric-business failure. Investors funds and the returns thereof are not covered as the subject of the insurance policy Leadway provides.”
With the above reaction from Leadway Assurance, TopNewsNaija understands that Thrive Agric insurance cover doesn’t include the investment of investors.