About the scheme
The Livestock Insurance Scheme, a centrally sponsored scheme was implemented on a pilot rule 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 was after implemented on a regular basis from 2008-09 in 100 newly selected districts of the country.
The project was later subsumed as a component titled Risk Management and Insurance under the sub-mission on livestock development of National Livestock Mission.
The component focuses at management of risk and uncertainties by providing a protection mechanism to the farmers against any eventual loss of their animals due to death and to demonstrate the benefit of the insurance of livestock to the people.
The scheme is implemented in all the districts of the Country from 21.05.2014.
The indigenous/cross bred milch animals, pack animals (Horses, Donkey, Mules, Camels, Ponies,and Cattle/Buffalo Male), and Other Livestock (Goat, Sheep, Pigs, Rabbit, Yak and Mithun etc.) are covered under the purview of this component.
Advantages of subsidy are to be restricted to 5 animals per beneficiary per household for all animals except sheep, goat, pig,and rabbit. In case of sheep, goat, pig, and rabbit the advantage of subsidy is to be restricted based on “Cattle Unit” and one cattle unit is equal to 10 animals i.e a total of 50 animals. If a beneficiary has less than 5 animals / 1 Cattle Unit, s/he can also take the benefit of subsidy.
An animal will be insured for its present market price. The market price of the animal to be insured will be assessed collectively by the beneficiary and the insurance company preferably in the presence of the Veterinary officer or the BDO. The minimum value of animal should be assessed by taking Rs.3000 per liter per day yield of milk or as per the price prevailing in the local market (declared by Government) for cow and Rs.4000 per liter per day yield of milk or as ruling in the local market (declared by Government) for Buffalo. The market price of pack animals (Horses, Donkey, Mules, Camels, Ponies and Cattle/Buff. Male) and Other livestock (Goat, Sheep, Pigs, Rabbit, Yak and Mithun) are to be assessed by negotiation collectively by owner of animal and by insurance company in the presence of veterinarians Doctor. In case of the issue, the price fixation would be settled by the Gram Panchayat / BDO.
The animal insured will have to be properly and uniquely identified during the insurance claim. The ear tagging should, therefore, be full proof as far as possible. The old 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 taken 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 located by the beneficiaries and the Insurance Company. The Veterinary Practitioners may guide the beneficiaries about the required and importance of the tags fixed for settlement of their claim so that they take proper care for the maintenance of the tags. The tag already available on the animal may be utilized with unique identity number subject to the condition that it is mutually agreed by farmer and agency and there shall not be an issue in settlement of claims on account of utilization of existing tag.
While processing an insurance proposal, one photograph of the animal with the Owner and one photograph of the animal clearly with the EAR TAG visible shall be taken at the time of processing the insurance documentation. In case of sale of the animal or otherwise, transfer of an animal from one owner to other, before the expiry of the Insurance Policy, the authority of beneficiary for the remaining period of policy will have to be transferred to the new owner.
Only four documents would be needed by insurance companies for settling the claims viz. intimation with the Insurance Company, Insurance Policy paper, Claim Form and Postmortem Report. In case of claim becoming due, the payment of insured amount should be paid within 15 days positively after submission of requisite documents. If an Insurance company fails to pay the claim within 15 days of submission of documents, the insurance company will be liable to pay, a penalty of 12% compound interest per annum to the beneficiary.