Dr K Rama Satyam Human insurance is common and many lives are insured whereas livestock insurance is not popularized because of farmers’...
Dr K Rama Satyam
Human insurance is common and many lives are insured whereas livestock insurance is not popularized because of farmers’ unawareness of its importance. If a farmer loses one bullock in a pair of bullocks working for ploughing the land, his farm operations will come to a grinding halt. Similarly, his milking cow/buffalo is lost, his family income goes. The poor farmer may not have financial stability to replace bullock or milking animal. If the farmer insures his animal the loss can be minimized by the money he receives from the insurance company.
Cattle can be insured for accidental deaths, diseases, lightning, robbery, floods, earthquakes, famines, cyclones and other unforeseen natural disasters and accidents. Animals supplied under bank loans and government schemes are usually insured. But the livestock owned by farmers can also be insured. Companies like Oriental Insurance, United India, New India and any other nationalized general insurance company will undertake insurance of livestock.
The premium is fixed according to the value of the animal depending on its age, physical fitness, and milk yield that will be determined after consultation with the local veterinarian. The insurance companies will fix the period from one to three years depending upon the payment of the premium. The company will put an ear tag for identification of an insured animal.
By paying additional payment of 1% that will cover infertility, incapability of giving milk due to udder infections, physically handicapped bullocks, death in transport of animals, the company will pay the insured amount to the farmer. Payment may be 75 to 100 % depending on the case and the veterinarian certificate.
The insurance company has a right to deny the payment if the animals die in war, due to infections, if they are untreated, improperly or ill-fed and if they lost their ear tags, etc. To claim the insured amount, the farmer has to inform the company about the death of the animal, tag number and time of death to the insured company immediately. The local veterinarian has to conduct post-mortem on the dead animal.
In case of bank loan the banker should also be informed about
- The dead body should be kept available for 24 hrs inspection of the insurance company personnel
- A photographer of the dead animal exposing the ear tag along with owner and any responsible person in the village has to be taken
- A filled in application provided by the insurance company along with ear tag, photo and post- mortem report should be submitted to the company for a claim.
Some of the Zilla Samaikhyas of Indira Kranthi Patham are also taking up livestock insurance for example in Vizianagaram and Visakhapatnam districts in Andhra Pradesh. One person in every Mandal has to be trained on livestock insurance by the insurance companies to help the farmers and create awareness among the farmers regarding the insurance of livestock. This will also provide part time employment to youth in mandals.