Topic- Livestock Insurance In India

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Definition:

Coverage for designated horses and other farm animals if they are damaged or
destroyed. The insurance includes registered cattle and herds, other farm livestock,
and zoo animals. This type of insurance protects the farmer or rancher against the
premature death of animals resulting from natural causes, fire, lightning, accidents,
and acts of God, acts of individuals other than the owner or employees, and
destruction for humane purposes.

Conditions For Insurance

Livestock owner required to fulfill the following conditions in regard to the
animals intended to be insured:

 Provide suitable housing accommodation having byers with sufficient space

for manger, water troughs and suitable housing in case of poultry.
 Offer good and balance feed to the animal.
 Animals should be free from ecto and endo-parasites and be treated
periodically for parasites.
 Animals must be protected against bacterial and viral diseases like anthrax,
black quarter, haemorrhargic septicaemia and foot and mouth disease.

Requirements for Livestock Insurance

Health Certificate: It is obligatory on the part of the owner to produce a certificate
from a qualified veterinarian to the effect that his animal is healthy and free from
any disease. the owner is required to pay a fee for this certificate as per prevailing
rates or as prescribed by government/insurance company.

Identification of Animals
The identification of the insured animal is of great importance and must be done
throughout and and faithfully. Emphasis has to be given to the breed,age,sex,body
colour,shape of horns,height,identification marks. Tagging must be done by a
veterinarian.

 The animal owner should note the ear tag number of his animal.
 If the ear tag falls or is lost due to tearing of ears while rubbing,the fallen tag
should be
preserved and this must be reported to the bank or insurance company in
writing.
 When an insured animals dies its ear tag is valuables proof and must be
reported to the bank or insurance company in writing.

Principle of No tag-No claim

Now a days insurance companies have adopted the principle of no claim i.e no claims is paid if
the specific ear is not submitted. Thus, timely retagging of the animal is very important
whenever its tag is lost or falls.

Insurance Policy
Livestock can be through to type of policy: Proposal-cum-Policy and Master policy agreement.
1) Proposal-cum-policy : The owner is required to fill the proforma called "proposal-cum-policy
with recipient and veterinary certificate" after obtaining the health certificate. This proforma may
be filled by the authorized agent of insurance company and by a qualified veterinarian. The
proforma contain information about:

1. Owner- his name, address and occupation

2. Period of insurance
3. Particulars of animal- species,breed,sex,colour,age,identification marks,height,purposefor
which used, total number of calving, date of last calving, present market value and sum
for which to be insured.
4. location of dairy farm.
5. Premium amount.
6. Cause of loss and number of animal lost during past three years.
7. Special remarks if any.

As soon as the accident occur the owner must report to the nearest police station and obtain
receipt for the same. the receipt is an important document to be included in the claim papers. A
certificate from the attending qualified veterinarian and the treatment chart indicating detailed
treatment given to an insured animal must be obtained and attached with the claim papers.

How to Proceed for the Insurance Claim

 1. In case of death of insured animal,the owner must intimate in writing to the concern
insurance company at once and get a receipt for the same.
2. In case purchase of the animal has been financed bya bank he must informed the bank
cincerned and get a receipt from the same.
3. If the animal died on the holiday, the message must be sent telegraphically/ personally to
the branch manager. The receipt of the telegram must be preserved as proof.
4. The owner , after intimating the insurance company/bank, should wait for on the spot
verification to be conducted by the representative of the insurance company and arrange
for a postmortem.
5. The carcass should be removed for post-mortem by the local chamar with the instruction
by a veterinarian and to collect a piece of the ear tag, which will be submitted to the
insurance company
6. Sometimes insured animal dies at such a place where it is not possible to get the post
mortem conducted by a qualified veterinarian. In such circumstances some insured
companies accept a joint certificate issued by any two of the following:


o Village Sarpanch
o Manager of the milk collection centre.
o Officer of cooperative central bank/ supervisor of DRDA or its inspector.

Requirement of post mortem has been waived in cases of animals financed under government
schemes and in such cases if the post mortem examination has been conducted,then a death
certificate sighned jointly by any of the following two persons will be sufficient:

1. Attending veterinary doctor

2. Sarpanch/pardhan
3. official/chairman of Milk Cooperative Society.
4. Official of DRDA
5. Manager of a bank other than the financing bank or other village cooperative.

The total claim documents required by insurance companies in urban and rural areas are as
follows:
Urban Area

1. Livestock claim Form

2. Veterinary certificate
3. Treatment Chart
4. Post-mortem Report
5. Valuation certificate
6. Photographs
7. Post-mortem confirmation certificate.
8. Police report, if any

Remote Area
 1. Livestock claim form.
2. Two certificate signed by

1. Village Head (Surpanch)

2. Chairman cooperative society
3. Manager of Milk Collective Centre
4. Officer of Cooperative Central Bank/Supervisor of DRDA or Inspector
3. Panchnama
4. Valuation Certificate
5. Police Report, if any.

The above document should be submitted to insurance company for necessary action for
payment. Sometimes these document are sent through financing bank which pursues the claim
for payment.
Useful links regarding Animal Insurance

http://www.royalsundaram.in/rural-social-sector/livestock-insurance.aspx

Livestock Insurance Scheme

The Livestock Insurance Scheme, a centrally sponsored scheme, which was implemented on a
pilot basis during 2005-06 and 2006-07 of the 10th Five Year Plan and 2007-08 of the 11th Five
Year Plan in 100 selected districts. The scheme is being implemented on a regular basis in 300
districts of the country.

The Livestock Insurance Scheme has been formulated with the twin objective of providing
protection mechanism to the farmers and cattle rearers against any eventual loss of their animals
due to death and to demonstrate the benefit of the insurance of livestock to the people and
popularize it with the ultimate goal of attaining qualitative improvement in livestock and their
products.

Under the scheme, the indegenous / crossbred milch cattle and buffaloes are being insured at
maximum of their current market price. The premium of the insurance is subsidized to the tune
of 50%. The entire cost of the subsidy is being borne by the Central Government. The benefit of
subsidy is being provided to a maximum of 2 animals per beneficiary for a policy of maximum
of three years.

The scheme is being implemented in all states except Goa through the State Livestock
Development Boards of respective states. 

Animals to be covered under the scheme and selection of beneficiaries

 The indigenous/crossbred milch cattle and buffaloes will be under the purview of
the scheme. Milch cattle/buffalo will include both in-milk and dry as well as
pregnant animal, which have already calved once.  
  Animals covered under any other insurance scheme/plan scheme will not be
covered under this scheme.
 Benefit of subsidy is to be restricted to two animals per beneficiary and is to be
given for one time insurance of an animal up to a maximum period of three years.
 The farmers will have to be encouraged to go for a three-year policy which is
likely to be more economical and useful for getting the real benefit of insurance
on occurrence of natural calamities like flood and drought etc. However, if a
farmer desires to have a policy for a period less than three years that could also be
provided and subsidy on premium will be provided for insuring same animals
again in the future years of implementation of the scheme.

Determination of market price of the animal

An animal will be insured for the maximum of its current market price. The market price
of the animal to be insured will be assessed jointly by the beneficiary, authorized
veterinary practitioner and the insurance agent.

Identification of insured animal

The animal insured will have to be properly and uniquely identified at the time of
insurance claim. The ear tagging should, therefore, be fool proof as far as possible. The
traditional method of ear tagging or the recent technology of fixing microchips could be
used at the time of taking the policy. The cost of fixing the identification mark will be
borne by the Insurance companies and responsibility of its maintenance will lie on the
concerned beneficiaries. The nature and quality of tagging materials will be mutually
agreed by the beneficiaries and the Insurance Company.

Change of owner during the validity period of insurance

In case of sale of the animal or otherwise transfer of animal from one owner to other,
before expiry of the Insurance Policy, the authority of beneficiary for the remaining
period of policy will have to be transferred to the new owner. The modalities for transfer
of livestock policy and fees and sale deed etc required for transfer, should be decided
while entering into contract with the insurance company.

Settlement of Claims
In case of claim becoming due, the payment of insured amount should be made within 15 days
positively after submission of requisite documents. Only four documents would be required by
insurance companies for settling the claims viz. FIR with the Insurance Company, Insurance Policy, Claim
Form and Postmortem Report.While insuring the animal, CEOs must ensure that clear cut procedures
are put in place for settlement of claims and the required documents are listed and the same is made
available to concerned beneficiaries along with the policy documents. All documents/forms for insuring
as well as settling the claims should be made available by the insurance agency in local language and
English language.
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