The following points highlight the seven main insurance schemes provided to the livestock sector. The schemes are: 1. Cattle Insurance 2. Sheep and Goat Insurance 3. Camel Insurance 4. Pig Insurance 5. Duck Insurance Applicability.
1. Cattle Insurance:
Cattle insurance was governed under Market Agreement as devised by GIC and the rates, terms, conditions, etc. all were applicable to all the four insurance companies. However, w.e.f. May 2003, it is no longer under Market Agreement.
This policy covers indigenous cross-bred and exotic cattle owned by private owners, various financial institutions, dairy farms, cooperatives, corporate dairies, etc. The word cattle include milch, cows and buffaloes calves and heifers, stud bulls, bullocks and he-buffaloes and mithans. Age group is specified for all the animals. The evaluation of the animal is done by a veterinarian.
Heifer rearing insurance scheme for scheme/non-scheme beneficiaries.
1. The companies may implement this scheme with caution and separate statistics may be maintained for review of the scheme.
2. The sum insured is only indicative and depending on local market conditions, it can be altered. Proportionate premium amount may be charged using the method given below.
3. The minimum period of coverage should not be less than 12 months.
4. In case of non-scheme animals, the premium rate would be @ of 4% and accordingly, the premium amount should be computed. The premium rate for scheme animals would be @ 2.25%.
5. The premium amount is computed from 1 day to 32 months. For example, in respect of scheme animals, the premium is Rs.207 for 32 months and in respect of non-scheme animals, the premium is Rs.368 for 32 months (valuation table enclosed).
6. The formula adopted for calculation of premium is as under:
If the cover is given from 6 months onwards, the sum insured for earlier months is excluded from aggregate sum insured while calculating the premium.
7. The scope of cover and executions are as per Standard Cattle Insurance Policy.
8. The claim procedure will be same as under Cattle Insurance Policy.
As far as buffalo calves are concerned, there is an existing scheme and no charges have been made.
Scope of Cover/Insurance Coverage:
The policy shall give indemnity only for death of cattle due to:
i. Accident (inclusive of flood, cyclone, and famine) or any other fortuitous circumstances (fortuitous means accidental in origin).
ii. Diseases (inclusive of rinderpest, blackquarter, hemorrhagic septicemia, foot and mouth disease subject to vaccination against each).
iii. Surgical operations.
iv. Strike riot and civil commotion and terrorism.
Policy is subject to certain standard and general exclusions. Animals are identified by way of ear tagging. The policy covers both scheme and non-scheme animals. Scheme animals are those animals, which are sponsored by the government agencies and are financed by some financial institutions, which may or may not involve any subsidy. Master policy arrangements are usually done with DRDA, bank, and cooperative societies, etc. There is a provision of long-term policies also.
All cattle of individual insured or dairy farm should be insured. No selection is allowed.
Foetus (Unborn Calf) Insurance Scheme:
This scheme covers the risk of death of embryo/foetus due to:
a. Accident (Inclusive of flood, cyclone, famine) or any other. Fortuitous circumstances (fortuitous means accidental in origin).
b. Diseases (Inclusive of rinderpest, blackquarter, haemorrhagic septicemia, foot and mouth disease subject to vaccination against each.
c. Surgical operations.
d. Strike riot and civil commotion and terrorism.
The scheme is applicable to both the embryo transferred from a selected donor to the synchronized recipient or frozen embryo transferred to the recipient and also the embryo/foetus developed by artificial insemination technique. This can be covered as a separate policy in addition to cattle insurance policy covering the recipient mother cow/buffalo.
The cover operates from the 60th day of the transfer of live quality embryo/ successful insemination and terminates from 220 +/-5 days for cow from the date of confirmation of pregnancy or from the date of calving whichever is earlier. It is not an annual policy. The perils covered are stillbirth, abortion of all kinds except malafied or induced once. Accidental risk, include abortion under veterinary advice to save the mother in conditions like downer’s cow syndrome, prolapse of uterus, portion of uterus, fracture of limb, etc. The sum insured is fixed and depends on the age of the embryo.
Calf Heifer Rearing Insurance Scheme:
The coverage under this policy is meant for calves/heifers from one day to 32 months. The valuation depends upon the age of the cow and is fixed according to the age of the calf. All terms and conditions applicable to cattle are applicable here also. Minimum coverage is taken from 12 months; however, this is not an annual policy.
2. Sheep and Goat Insurance:
This scheme is also governed under Market Agreement. Policy provides indemnity to indigenous cross-bred and exotic sheep and goat against death due to accident (including fire, lightening, flood, cyclone, famine, strike, riot and civil commotion) and disease. Earthquake and landslide covers are also provided. Standard and common exclusions apply as per cattle policy. Animals are identified by means of small brass buttons ear tags. Animals under scheme category enjoy certain benefits in premium rate and claim procedure.
3. Camel Insurance:
The camels are covered against death due to accident or disease as per standard cattle insurance policy. The maximum SI is restricted to Rs.3000/-.
4. Pig Insurance:
All indigenous, cross-bred and exotic pigs are covered; however, under scheme category exotic animals are not covered. The age group is from 4 months to 3 years. The coverage is against death due to accident or disease. Exclusions as per cattle policy apply here also. Permanent total disablement, breeding and furrowing risks are not covered. Vaccination in applicable diseases is compulsory. Evaluation depends upon the age of the animal. Animals are identified by means of small brass buttons ear tags.
5. Horse, Mule, Donkey, Pony, Yak Insurance:
The coverage is as per standard cattle policy. However, the age group is restricted to 2 to 8 years.
6. Poultry Insurance:
This is also governed by Market Agreement, amongst all the four subsidiary companies. The policy shall provide indemnity against death of birds due to accident (including fire, lightning, flood, cyclone, strike, riot and civil commotion and terrorism) or diseases contracted or occurring during the period of insurance. The word poultry includes layers, broilers and hatchery birds, which are exotic and cross-bred.
Indigenous and non-descript birds will not be insured. All birds in a farm should be covered. The scheme is applicable to poultry farms consisting of minimum 100 birds under scheme category and 500 birds under non-scheme category. In general, it is 100 broilers per batch, 500 layers per batch and 2000 hatchery birds per batch. For layers, the cover is provided from 1 day to 20 weeks, 21 to 72 weeks or 1 day to 72 weeks.
Broilers are covered from 1 day to 6 weeks or 8 weeks. Hatchery birds are covered from 1 day to 72 weeks. The value of the bird is fixed according to the age. The cover is provided against death of the birds due to accident or disease. All applicable cases, vaccination are a must. The valuation of the birds is arrived by a multiplying factor with the age in weeks.
The multiplier is applied to the prevailing feed cost and the day old chick cost is added to arrive at week-wise valuation. Certain common and standard exclusions applied. Since all the birds are covered, there is no need for identification. The poultry farmer is expected to maintain all the relevant records like feed register, flock record on day to day basis, daily stock register, mortality, culling, vaccination, feed consumption, production, de-breaking, and incidents of diseases, sales and purchase.
7. Duck Insurance Applicability:
i. All types of migratory and non-migratory birds in India.
ii. Duck farms consisting of minimum of 100 ducks for non-IRDP and 50 ducks for IRDP and other government subsidized schemes.
All birds in duckery farm should be insured.
Duck Insurance Scheme shall provide indemnity against death of ducks due to accident including lightning, flood, cyclone, famine, riot and strike, civil commotion or diseases contracted or occurring during the period of insurance.
This insurance is akin to poultry insurance except the age group, which is grouped into three:
i. Day old to 52 weeks.
ii. 53 to 104 weeks.
iii. 105 to 120 weeks.