INSURANCES (livestock).docx

8/9/2019 INSURANCES (livestock).docx

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EXECUTIVE SUMMARY

The importance of livestock Insurance is increasing gradually in India before the nationalization of General Insurance. Some Insurancecompanies at the private sector made efforts to introduce livestock Insurance in the country, but due to increasing number of claims than the

premiums, this program could not be succeeded.

Under the livestock Insurance, the Insurance of cows, buffaloes, camels,horses, dogs, etc. can be made.

arious types of livestock have been vital to agriculture throughout theworld since the beginning of human civilization. Some forms oflivestock, such as goats and sheep, can be raised in areas inhospitable tocereal crop allowing large concentration of people to live there.

!ivestock refers to domesticated animals that may be kept or raised in pens, houses, pastures, or on farms as part of an agricultural or farmingoperation, whether for commerce or private use.

!ivestock constitute ma"or sources of epidemic disease in humans# thesedisease have had a significant impact on history. $hen an agriculturalsociety, that raises livestock, comes in contact with a non% agriculturalsociety their disease often spread to the latter&who lack any resistance',which can have devastating conse(uences.

This Insurance provide cover against death of animals, like bulls, buffaloes, cows and heifers, arising as a result of accident, disease, parturition or pregnant condition, as the case may be the Insurance isarranged on a sort of the e)cess basis, and provides for a payment of amount in e)cess of a certain other amount which is known as first loss.

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CHAPTER 1

INSURANCE

1.1 INTRODUCTION

Insurance may be described as a social device to reduce or

eliminate risks of loss to life and property. It is a provision which a

prudent man makes against inevitable contingencies, loss or misfortune.

Insurance is a form of risk management in which the insured

transfers the cost of potential loss to another entity in e)change for

monetary compensation known as premium.

Insurance allows individuals, businesses and other entities to

protect themselves against significant potential losses and financial

hardship at a reasonably affordable rate. $e say *significant+ because if

the potential loss is small, then it doesn t make sense to pay a premium to

protect against a - / loss because this would not be considered a

financial hardship for most.

Insurance is appropriate when you want to protect against a

significant monetary loss. Take !ifeInsurance as an e)ample. If you are

the primary breadwinner in your home, the loss of income thatyour

family would e)perienced as a result of our premature death is considered

a significant loss and hardship that you should protect them against. It

would be very difficult for your family to replace your income, so the

monthly premiums ensure that if you die, your income will be replaced

by the insured amount. The same principle applies to many other forms of

Insurance. If the potential loss will have a detrimental effect on the

person or entity, Insurance makes sense.

Under the plan of Insurance, a large number of people associate

themselves by sharing risks attached to individuals. 0s in private life, in

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business also there are dangers and risks of different kinds. The aim of all

types of Insurance is to make provisions against such dangers.

Insurance is the modern method by which men make the uncertain

certain and the une(ual, e(ual. It is the means by which success is almost

guaranteed.

The aim of all types of Insurance is to make provision against such

dangers. The risks which can be insured against include fire, the perils of

sea &marine Insurance', death &!ife Insurance' and, accidents and

burglary. Thus, collective bearing of risks is Insurance.

1.1 DEFINITIONS

The term 1Insurance has been defined by different e)perts on the sub"ect.

The views e)pressed by them through various definitions can be

classified into the following three categories for the convenience of the

study2

General or Social 3efinitions.4unctional5 6conomics5 7usiness 3efinitions.8ontractual5 !egal 3efinitions.

1.2 TYPES OF INSURANCE(A) LIFE INSURANCE

• Term !ife Insurance• 9ermanent !ife Insurance

(B)GENERAL INSURANCE• 4ire Insurance• :arine Insurance• 0ccident Insurance• !ivestock Insurance

1.3 CHARACTERISTICS OF INSURANCE• Shar !" #$ r %&%2 Insurance is a cooperative device to share

the burden of risk which may fall on happening of some

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unforeseen events, such as the death of head of the family, or

on happening or marine perils or loss of by fire.• E'a a* #! #$ r %& 2 4or the purpose of ascertaining the

Insurance premium, the volume of risk is evaluated, whichforms the basis of Insurance contract.

Pa+,-!* #! ha -! !" #$ % -/ $ -0 -'-!* ;n happening

of specified event, the Insurance 8ompany is bound to

payment to the insured.


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and the insured promises to pay a fi)ed rate of premium to

the insurer.

1. FUNCTIONS OF INSURANCE

The 4unctions of Insurance may be categorized as below2

I. 9rimary 4unctionsII. Secondary 4unctionsIII. ;ther 4unctions

I. Pr ,ar+ F !/* #!%

The primary 4unctions of Insurance include the following2

1. Pr#' 0- r#*-/* #! The primary purpose of Insurance is to

provide protection against future risk, accidents and uncertainty.

Insurance cannot check the happening of the risk, but can

certainly provide for the losses of risk.2. C# -/* '- -ar !" #$ r %& Insurance is a device to share the

financial loss of few among many others. The collective bearing

of risks is Insurance. 0ll the insured s contribute the premiums

towards a fund and out of which the persons e)posed to a

particular risk is paid.3. E'a a* #! #$ r %&% Insurance determines the probable volume

of risk by evaluating various factors that give rise to risk. =isk

is the basis for determining the premium rate also.. Pr#' 0- /-r*a !*+ a"a !%* r %& Insurance is a device which

helps to change from uncertainty to certainty. This may be

reason that the function of Insurance is to provide certainty.4. S r-a0 !" r %&% Insurance is the device for spreading or

distributing risks.

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II. S-/#!0ar+ F !/* #!%

The Secondary 4unctions include the following2

1. Pr-'-!* #! #$ #%%-%2 Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate

conse(uences of risk by observing safely instructions#

installation of automatic sparkler or alarm systems,etc.2. S,a /a *a *# /#'-r ar"-r r %&% Insurance relieves the

businessmen and others from security investments, by paying

small amount of premium against larger risk and uncertainty.

There is no need for them to invest separately for security

purpose and this money can be invested in other activities.3. C#!*r *- *#5ar0% *h- 0-'- # ,-!* #$ ar"-r

-!*-r r %-% Insurance provides development opportunity to

those larger enterprises having more risks in their setting up.

6ven the financial institutions may be prepared to give credit

to sick industrial units which have insured their assetsincluding plant and machinery.

III. O*h-rF !/* #!%

There are indirect functions of Insurance which benefit the

economy indirectly. Some of such 4unctions are21. M-a!% #$ %a' !" a!0 !'-%*,-!* Insurance serves as

Savings and investment. Insurance is a compulsory way of

saving and it restricts the unnecessary e)penses by the

insured. 4or the purpose of availing income%ta) e)emptions

also, people invest in Insurance.2. S# r/- #$ -ar! !" F#r- "! -6/ha!"- Insurance is an

international business. The country can earn foreign

e)change by way of issue of marine Insurance policies.

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Sample size refers to the number of respondents to be selected toconstitute a sample. Sample size should be optimum. The sample size of the survey was conducted for @/ respondents.

1.:LIMITATIONS OF STUDY

• 0nalysis is based from data collected from 3ombivli area only.

• Study is sub"ect to limitation of time i.e. @ months.

• The data is collected only from @/ respondents.

CHAPTER 2

LIVESTOC; INSURANCE

2.1 INTRODUCTION

The importance of livestock Insurance is increasing gradually in India before the nationalization of General Insurance. Some Insurance

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companies at the private sector made efforts to introduce livestock

Insurancein the country, but due to increasing number of claims than the

premiums, this programe could not be succeeded.

Under the livestock Insurance, the Insurance of cows, o)es, buffaloes,

camels, horses, dogs, etc. can be made. The ob"ect of this Insurance is to

provide economic assistance to farmers in the case of death or accident of

these animals.

!ivestock refers to domesticated animals that may be kept or raised in

pens, houses, pastures, or on farms as part of an agricultural or farmingoperation, whether for commerce or private use.

The process of breeding, raising and caring for livestock is known as

animal husbandry and is an important component of modern agriculture.

The raising of livestock can be traced to the beginnings of human

civilization, when instead of hunting wild animals# humans began to

capture animals for breeding.

Throughout history, livestock have been considered to bea form of

wealth. !ivestock are mentioned in many parts of the 7ible and were

used as forms of trade and given as gifts. In many cultures, livestock have

historically been offered as animal sacrifices to atone for sin and appease

the gods.

:any forms of livestock are herbivorous mammals. arious types of

livestock are reared depending on the local conditions2 climate, consumer

demand, land type, native animals, and tradition all influence the

predominant type of livestock in any given area. Given that there are over

a hundred large land%based mammals it may be surprising that so few

types are domesticated in some countries. The reason for this relative

paucity is that a lot of mammals do not meet the basic prere(uisites

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necessary for domestication, such as having a readily available food

sources that can be controlled or supplied by humans, a rapid rate of

reproduction, a moderate temperament, and a social structure that meshes

well with human invention.

In developed countries the (uestion of the welfare of livestock animal

has resulted in animal welfare laws which specify the minimum

conditions of care, housing, and transportation. The animal rights lobby

argues the are inade(uate and seek tighter controls, and in e)treme cases

seeks the banning of the ownership of animals and the making the

consumption of meat, dairy and other animal products illegal. Some

4armers have developed management techni(ues that they believe are

more enlightened and progressive and that they feel address most of the

concerns of lobbyists.

2.2 LIVE STOC; INSURANCE IN INDIA

The livestockInsuranceprogram was started in A//A in the village of

Bibber, in the Spiti alley of IndiaCs northern state of


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6ventually, itCs hoped that all the families in these five villages will be

part of the program. The Trust and its local partner organizations also

hope to e)pand the program to other parts of northern India. 3iscussions

with community leaders have already begun in the Gya%:iru region, in

the Indian state of !adakh.

The Trust has gradually been decreasing its financial support of the

livestockInsuranceprogram, as the Insurance fund has built surplus funds

year by year. 7y A/D/, itCs hoped that the program will become self%

sustaining.

2.3 Or " ! #$ L '-%*#/& I!% ra!/-

arious types of livestock have been vital to agriculture throughout

the world since the beginning of human civilization. Some forms of

livestock, such as goats and sheep, can be raised in areas inhospitable to

cereal crop allowing large concentration of people to live there.

In other cases, livestock could be used to supplement unreliable or

uneconomical cereal crops. =aising livestock is less dependent on good

weather and is less labour incentives than most forms of plant agriculture.

0nimals could graze on pasture unfit for human consumption.

4or e)ample, in Italy and Spain during the middle ages and early

modern period, sheep were e)tremely important for an economy. Theoften dry weather and increasing number of crop failures during the D th

century encouraged landlords and other investors to switch from grain

production to livestock%raising. :assive sheep migrations were regulated

by the governments, and formed a large portion of the ta) base for the

economy in Spain and were vitally important in Italy. The government

established vast networks of sheep walks with sufficient pasture lands, in

order to facilitate the winter migration of herds of millions of sheep and

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thousands of shepherds. Government officials also regulated the rotation

of shepherds on pasture to smooth their movement. These governments

would then levy duties on the products, such as wool, cheese, hides and

meat, produced from sheep moved along the road. Sheep manure was

also used as a fertilizer to augment grain harvests.

In other areas, including most of northern 6urope, livestock was

usually held in smaller numbers. In these areas, higher levels of rainfall

allowed for large animal such as cows to be raised. :any cultures had

provisions for common grazing land.

2. N--0 $#r Ca** - I!% ra!/-

=isk reduction mechanisms are working poorly% 9oorly e)ecuted vaccination and other prophylactic

measures% !ack of good breeding and genetic improvement methods% Improper feeding and sheltering facilities with the farmers

% 9oor rural veterinary infrastructure soft as well as hard% Insurance product presently offered are limited to

catastrophic death and disability covers.• !ow penetration of livestock Insurance with JD/K cattle insured

due to% Slim 8overs

% 9roblem with

3istribution

8hannels% !iteracy and

awareness

13

YEAR

L '-%*#/&

P-!-*ra* #!

Pr-%-!* . HK

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Table A.D

2.4 Far, !" Pra/* /-%

0t the most basic level some kinds of animals are kept in

enclosures of some sort, are fed by some means &given access to natural

or human%provided sources of food', are usually bred &preferred breeding

times, methods, and such like all depend on local conditions and

tradition' and are either slaughtered for meat and animal by%products, or are milked or shorn for animal fiber.

!ivestock may be kept in confirmation in very small areas &cages

or pens', as with poultry, rabbits or veal cattle , in sheds or barns, in

fenced pastures or on large open ranges where they are only occasionally

collected in *round%ups+ or *musters+.


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"ackaroos on horseback or in helicopters. Since the advent of barbed wire

&in the DHL/s' and electric fencing technology, fencing pastures has

become much more feasible and pasture management simplified. In some

cases very large numbers of animals may be kept in indoor or outdoor

feeding operations &on feedlots', where the animals feed is processed,

offsite or onsite, and stored onsite then fed to the animals. 7ecause of

their size, the (uantity of waste involved, fly and odour problems,

potential for groundwater contamination, animal welfare and other factors

these feedlots are highly regulated and are controversial in some areas.

!ivestock may be branded, marked, or tagged to denote ownership

or for inventory, breeding, health management, product identification and

tracing, or other purpose.

:odern farming techni(ues mainly focus on the automation of the

various tasks involved and human intervention to increase yield and

improve animal health. Successive improvements of traditionaltechni(ues have mostly focused on these same goals. 6conomics, (uality

and consumer safety all play a role in how animals are raised. 3rug use

and feed supplements &or even feed type' may be regulated, or prohibited,

to ensure yield is not increased at the e)penses of consumer health, safety

or animal welfare.

9ractices vary around the world, for e)ample growth hormone use is permitted in the United States but not in the 6uropean Union or in

countries selling meat5produce in the 6U such as 0ustralia and ?ew

Mealand.

2.8 DISEASE

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!ivestock constitute ma"or sources of epidemic disease in humans#

these diseases have had a significant impact on history. $hen an

agricultural society, that raises livestock, comes in contact with a non%

agricultural society their disease often spread to the latter&who lack any

resistance', which can have devastating conse(uences.

The following tables lists disease which originally infected

livestock and can now infect humans2

D %-a%- S# r/-% a! ,a

Smallpo) 8attle

Tuberculosis cattle

:easles cattle

Influenza 9igs, ducks

9ertussis 9igs, dogsTable A.A

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;ther disease can be transmitted from animals. :ad cow disease is

transmitted between cattle which are fed food containing cattle brains and

spines. It is postulated that the disease vector causing mad cow diseases

can also be transmitted to humans who eat infected cattle, causing the

fatal disease known as variant creutzfeldt%Nakob disease &8"d'. Though

this connection has not been conclusively proven, over E K of identified

cases of 8N3 are in 7ritain, which suffered a mad cow disease epidemic

in the mid to late DEH/s. :ad cow disease has led to a using cattle by%

products in cattle feed.

;ther disease may be transmitted from livestock to humans include

bird flu and some may originate from the bacteria 6. coli ;D L2


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8attle Insurance schemes 2 The cattle Insurance policy under

market agreement covers milch cows, and buffaloes, calves 5 heifers, stud

bulls, bullocks and castrated male buffaloes where.

Sh-- a!0 G#a* I!% ra!/-

Sheep and Goat Insurance provides indemnity to indigenous cross%

bred and e)otic sheep and goat. 0nimal against death of sheep and goats

due to accident. Including 4ire, lighting, 4lood, cyclone, 4amine,

earth(uake, landslide, Strike, =iot or diseases contracted or occurring

during the period of Insurance.

This policy is available to persons having sheep and Goat of either

se) certified as being in sound and perfect health and free from in"ury or

disease by a veterinary doctor5 surgeon and who are :embers&in groups'

of :icro 4inance Institutions, ?on%Government organizations,

Government Sponsored ;rganizations and such affinity groups 5

institutions in rural and social sector.

H#r%-@ #!+@, - I!% ra!/-

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The policy for


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whereas in other cases it is H/ of marker value for organized breeding

farms whereas in cases it is H/ K of market value.

Ca,- I!% ra!/- 2

The camel Insurance policy is applicable to all male and femalecamel in India including camel subsidized. 7y S430539095:40!

between ages group of @ years to D/years. The sum assumed will be H/ K

market value or bank finance. The ma)imum sum insured id =s. @/// in

cases of bank finance S430539095:40!. In case of 9T3 claim, L K of

sum assured is payable. The premium rate is F K annum for I=30

schemes camels and A.A K& net' for I=30 scheme camel. 1surra diseaseis e)cluded. The minimum premium is =s. A per annum per animal. The

policy provides indemnity only for death due to accident inclusive of

floor, eye lone famine or disease inclusive of =inderpest, 7lack(uater,

haemorrhagic septicaemia 0ntra) contracted or occurring during the

period of policy or strike, riotand civil common risk. The e)cluclusion on

are common and specific e)clusions.

Ra * I!% ra!/-

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The rabbit Insurance policy is applicable to all breeds of rabbit in

India, in the age group of D day to F years, but death of rabbit due to

disease till they complete the age of @/ days is not covered. The risk

covered are, death of rabbits due to accident and 5 or disease contracted

during the period of Insurance. The e)clusions have common e)clusion

as described in camel Insurance and specific e)clusions of transport by

air and sea, perm ant and specific e)clusions of transport by air and sea,

permanent and partial disable intentional slaughter, undergrowth,

my)oomatosis and coocidissis. The insured is composed only L/ K of the

sum assured, the rate of premium is LK of sum assured.

E - ha!* I!% ra!/-

The elephant Insurance policy indemnifies the owner for death due

to accident or disease contracted or occurring during the period of

Insurance sub"ect to certain e)clusions stipulated. The insurable age

group is one year to / years. The policy is applicable to the elephants

including those owned by temple, circus companies and individuals. The

sum assured is H/K of market value. The value of sum assured does not

e)ceed =s. /,///. The premium rate is K per annum. The common

e)clusions clause as mentioned under 8attle :arket 0greement is also

applicable in this case. Specific e)clusions are surgical operations,

disability, breeding and calving and certain specific diseases such as

tubereulosis, foot and mouth diseases etc.

D#" I!% ra!/-

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The dog Insurance policy insures the risks against due to accident and5

or disease contracted during the period of Insurance sub"ect to usual

theory and conditions. The Insurance age group is H weeks to H years.

3ogs of indigenous cross%bred and e)otic breed should not be less than

=s. A// and ma)imum value of any dog should not e)ceed =s. A,/// each

dog. The premium rate is K per annum. In the event of death the insures

dog, any amount received or receivable by the insured from third parties

and value of the salvage value recovered if any would be deducted from

the claim amount.etcP

2.> EXCLUSIONS

3eath of the animals, arising out of the following are e)cluded

1 $ar and allied risks, strikes, riot and civil commotion#

2 Slaughter of the animal without prior consent of the insurers#

3 4ire, lighting, seagoing transit, surgical operations, breeding and loss

occasioned by the animal becoming unfit or incapable of fulfilling the

functions for which it is kept or employed.

2.? A0'a!*a"- L '-%*#/& Sh - 0

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This policy covers the animal against death due to disease or

accident &including fire, lightning, flood, cyclone, strike, riot and civil

commotion', contracted or occurring during the period of Insurance.

• A! ,a % *ha* /a! - /#'-r-08ows, buffaloes, bullocks, camels, sheep, goats, horses, ponies and

mules.• Va a* #! % , !% r-0

Identification and valuation will be as per the veterinary certificate

and or declaration of the purchase committee. 6ar%tags will be supplied

by the company.

• B-!-$ * , *%8laims will be settled for the sum insured or market value prior to

illness, whichever is less.

Pr-, ,

!ivestock Shield offers this cover at an affordable premium of FK

per annum on the sum insured.

U%-%


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M-a*

In many agricultural societies, livestock replaced wild game as the

primary source of source of animal protein. !ivestock fre(uent eat forageand other food sources that humans are unable &or prefer not ' to eat and

convert them to types of food that humans can eat.

Da r+ r#0 /*%:ammalian livestock can be used a source of milk, which can in

turn easily be processed into other dairy products such as yogurt,

cheese, butter, ice cream, kefir, and kumiss. In advanced dairingcountries the number of products made from milk range in the A/ to

@/ types. Using livestock for this purpose can often yield several times

the food energy of slaughtering the animal outright. H#!-+ a!0 a6

7ees collect pollen and honey from plants and process them into

products that are useful to human survival.


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!ivestock leave behind manure, which, after being spread on a field,

can increase crop yields many times. This is an important reason why

historically, plant and animal domestication have been intimately linked.

9arts of animals that have been slaughtered, or animals that die on farms,

are rendered into a variety of products, the main one being blood and

bone.

La # r

!ivestock often serves as an important source of mechanical energy.

7efore the advent of steam power, livestock was often the only source of non%human labour available. !ivestock can be used to pull ploughs and

other agricultural e(uipment &again increasing farm yields' , transport

goods across large distances and to serve important military functions.

3raft animal are often bred for desirable (ualities such as endurances,

strength and, in military usage, aggression.

La # r ,a!a"-,-!*

The grazing of livestock is something used as a way to control weeds

and undergrowth on an area of land. 4or e)ample goats and sheep are

used to eat dry scrub in areas prone to wild fires in order to remove

combustible material and reduce fire risk.

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CHAPTER 3

IMPORTANT ASPECTS OF LIVESTOC;

INSURANCE.

3.1 L '-%*#/& I!% ra!/- S/h-,-% a!0 B-!-$ *

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The !ivestock Insurance Scheme, a centrally sponsored scheme, is

being implemented on a pilot basis during A// %/ and A// %/L of the

D/ th 4ive Oear 9lan in D// selected districts.

Under the scheme, the crossbred and high yielding cattle and

buffaloes are being insured at ma)imum of their current market price.

The premium of the Insurance is subsidized to the tune of /K.

The entire cost of the subsidy is being borne by the 8entral

Government. The benefit of subsidy is being provided to a ma)imum of A

animals per beneficiary for a policy of ma)imum of three years.

The scheme is being implemented in all states e)cept Goa through

the State !ivestock 3evelopment 7oards of respective states.

The scheme will be e)tended in DD th 4ive Oear 9lan covering entire

country and more species of livestock depending on its performance

during the pilot period.

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The !ivestock Insurance Scheme has been formulated with the twin

ob"ective 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 (ualitative improvement

in livestock and their products.

3.3 D-*-r, !a* #! #$ ,ar&-* r /- #$ *h- a! ,a

0n animal will be insured for the ma)imum of its current market

price. The market price of the animal to be insured will be assessed

"ointly by the beneficiary, authorized veterinary practitioner and the

Insurance agent.

I0-!* $ /a* #! #$ !% r-0 a! ,a

The animal insured will have to be properly and uni(uely 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 fi)ing microchips could be used at the time of

taking the policy.

The cost of fi)ing the identification mark will be borne by the Insurance

companies and responsibility of its maintenance will lie on the

concerned beneficiaries. The nature and (uality of tagging materials will

be mutually agreed by the beneficiaries and the Insurance 8ompany.

3. Cha!"- #$ #5!-r 0 r !" *h- 'a 0 *+ -r #0 #$ I!% ra!/-

In case of sale of the animal or otherwise transfer of animal from one

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owner to other, before e)piry of the Insurance 9olicy, 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.

re(uired for transfer, should be decided while entering into contract with

the Insurance company.

III.4 S-** -,-!* #$ C a ,%

In case of claim becoming due, the payment of insured amount should be

made within D days positively after submission of re(uisite documents.

;nly four documents would be re(uired by Insurance companies for

settling the claims viz. 4I= with the Insurance 8ompany, Insurance

9olicy, 8laim 4orm and 9ostmortem =eport. $hile insuring the animal,

86;s must ensure that clear cut procedures are put in place for

settlement of claims and the re(uired documents are listed and the sameis made available to concerned beneficiaries along with the policy

documents.

0ll documents5forms for insuring as well as settling the claims should be

made available by the Insurance agency in local language and 6nglish

language.

L '-%*#/& # / -%

7uying a livestock Insurance policy is one risk management option.

9roducers should always carefully consider how a policy will work in

con"unction with their other risk management strategies to insure the best

possible outcome

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III.8 LIVESTOC; INSURANCE PROGRAMS AND

BENEFIT

• Th- L-# ar0 I!% ra!/- Pr#"ra, %a'-% S!#5 L-# ar0%

The !ivestock Insurance program saves snow leopards by reducing

human%snow leopard conflicts. $en herders are compensated financially

for occasionally losses to predators they are less likely to kill snow

leopards in retaliation.

The program is also designed to reduce conflicts by making snow

leopard predation on domestic livestock less likely in the first place. This

is done in two ways2

The program provides sustainable incentives for good herding

practices that keep domestic livestock away from snow leopards. 7onuses

are paid out of the Insurance fund to herders who have no livestock lostduring a coverage year, or to the herder who has the least losses.

In one of the participating villages, herders agree not to graze their

livestock on a portion of the village s land, leaving more forage for the

snow leopard s wild prey. &The village receives a fee that is based on the

fair market rent for grazing land in the area'. $hen wild prey is abundant

and healthy, snow leopards are less likely to turn to domestic livestock for food.

Indeed, the population of bharal, or blue sheep, in the area has

increased three%fold since this grazing reserve was started. 7haral have

also been observed grazing in the area in the summer and autumn, their

normal pattern, rather than only in the summer, as they were before the

grazing reserve was established.

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• L '-%*#/& I!% ra!/- Pr#"ra, h- % $a, -%

The livestock Insurance program helps families by compensating them

financially for livestock lost to snow leopards, leading to higher, more

stable household incomes. 4amilies no longer have to fear financial ruin

as a result of snow leopard predation and have more money to meet their

basic needs.

In the region of India where the livestock Insurance program is taking

place, a herder s annual income average -F//% // &US'. In this area, a

yak is worth an average of -AD@ &US', and a horse -DL/&US'. In other

words, loss of an animal to a snow leopard or other predator represents a

real financial hardship for herding families.

• L '-%*#/& I!% ra!/- Pr#"ra, h- % C#,, ! * -%

The livestock Insurance program helps communities because it is

entirely village run, an arrangement that strengthens the structure of

community.

In most of India s Trans%


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villagers, investigates claims when an animal is killed, and gives out

payments from the Insurance fund.

In addition, payment for the grazing reserve goes to the village

council, which uses them for development pro"ects that benefit the entire

community.

4inally, by coming together and sharing the financial risk from

livestock predation, people contribute to the good of the village as a

whole and feel a greater sense of community.

3.8 C#, a! -% *ha* r#' 0- Ca** - I!% ra!/-

33


34/41

Companiesthat

provide LivestInusrance

LivestockInsuranceScheme

harat !"!

#enera$Insurance

%nited IndiaInsurance

Com pan& Ltd

#enera$Insuranc

e

4igure @.D

CHAPTER INSURANCE PROFILE

.1 GENERAL INSURANCE COMPANY

34


35/41

The Insurance 8ooperation of India &GI8' implements various cattle l

insurance programmers. Under the livestock insurance policy, cover is

provided for the sum insured or the market value of the animal at the time

of death whichever is less. 0nimals are normally insured up to D//K of

their market value. The position regarding number of cattle covered,

premium collected and claims paid since DEEF E . The fall in the

number of animal insured in last two years is due to reduction in the

number of low value animals such ass calves , sheep and goats which

now constitute hardly of K of animals covered.

CATTLE INSURANCE

This is an agreement between the four subsidiaries of GI8 of I?3I0 in

respect of 8attle Insurance business and shall be observed by all the four

companies with regards to rates, term and conditions prescribed by this

agreement.

D. 0pplicability

0pplicable to indigenous, cross%bred and e)otic cattle owned by

belonging to private owners, various financial institutions. i.e.

7ank 4inanced, :ilitary dairy farms, co%operative 5 corporative

dairies, etc.

8attle mean and include2• :ilch cows and buffaloes• 8alves 5


36/41

8alves 5


37/41

?ew India has been rated *0+ &6)cellent' by A.M. B-%* C#. ,

making it only Indian insurance company to have been rated by an

international rating agency. =ating based on following factors2

• Superior 8apital 9osition• Strong ;peration 9erformance• ;nly 8ompany to develop significant international operations, long

record of successful trading outside India.MISSION

• To develop general insurance business in the best interest of the

community.• To provide financial security to individuals, trade, commerce and all other

segments of the society by offering insurance products and services of

high (uality at affordable cost.VALUES

•


38/41


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. The premium rates under the policy are concessional for covering animals

under government subsidized schemes.L. Group discount are also available.

I!% ra!/- C#'-ra"-• The policy shall give indemnity for death due to.• 0ccident &Inclusive of 4ire, lighting, flood, inundation, storm, hurricane,

earth(uake, cyclone, tornado, tempest and famine'.• 3iseases contracted or occurring during the period of this policy.• Surgical ;perations.• =iot and Strike.•

The 9olicy can also be e)tended to cover 9T3 on payment of e)tra premium#

• 9ermanent Total 3isability $hich, in the case of :ilch 8attle results

in permanent and total incapacity to conceive or yield milk.• 9T3 which in the case of Stud 7ulls results in permanent and total

incapacity for breeding purpose.• In case of 7ullocks, 8alves 5


40/41


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• $ar, invasion, act of foreign enemy, hostilities &whether war be declared

or not', civil war, rebellion, revolution, insurrection, mutiny, tumult,

military or usurped power or any conse(uences thereof or attempt threat.• 0ny accident, loss, destruction, damage or legal liability directly or

indirectly caused by or contributed to by or arising from nuclear weapons.• 8onse(uential loss of whatsoever nature.• Transport by air and sea.• 0ny non%scheme claim arising due to diseases contracted within D days

from the date of risk are not covered.

B) S -/ $ / E6/ % #!%• 9leuropneumonia in respect of 8attle in !akhimpur and Sibasagar

3istricts and newly carved out districts out of these two districts of

0ssam.• 0ll the claims received without ear tag.

D#/ ,-!*% *# E$$-/* I!% ra!/- C#'-ra"-• 9roposal 4orm• eterinary

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