JustBaazaar Editor September 12, 2024

India, with its vast agrarian economy, relies heavily on livestock as a critical component of rural livelihoods. Livestock provides income, nutrition, and employment to millions of small and marginal farmers. However, the sector is highly vulnerable to risks such as diseases, natural calamities, and unforeseen accidents. To mitigate these risks and protect farmers’ livelihoods, the Government of India introduced the Livestock Insurance Scheme under the National Livestock Mission.

This blog aims to provide an in-depth overview of the Livestock Insurance Scheme, its objectives, benefits, eligibility criteria, application process, and the way forward.

Watch Video

1. Understanding the Livestock Insurance Scheme

The Livestock Insurance Scheme is a government initiative designed to provide protection to livestock farmers against the loss of their valuable animals due to death, disease, or accident. The scheme primarily targets high-value indigenous breeds and crossbred cattle, buffaloes, and other types of livestock to reduce the financial impact on farmers in case of unforeseen events.

Key Objectives:

  • To provide a safety net to farmers against the loss of their livestock.
  • To encourage farmers to invest in quality breeds, enhancing overall livestock productivity.
  • To promote sustainable livestock rearing practices and improve the economic well-being of farmers.

2. Key Features of the Scheme

  1. Coverage: The scheme covers high-value animals like milch cows, buffaloes, sheep, goats, pigs, and other domesticated animals.
  2. Insurance Period: Typically, the insurance cover is available for one to three years, depending on the farmer’s choice.
  3. Premium Subsidy: The government provides a significant subsidy on the insurance premium, making it affordable for farmers. Generally, 50% of the premium is subsidized, with farmers paying the remaining amount.
  4. Sum Insured: The sum insured is generally the current market value of the livestock, determined by the valuation committee comprising a veterinarian, insurance agent, and the farmer.
  5. Claim Settlement: Quick and hassle-free claim settlement process to ensure timely compensation to farmers.
  6. Comprehensive Coverage: Covers accidental death, diseases, surgical operations, and other risks that may lead to the death of livestock.

3. Eligibility Criteria

To avail of the benefits of the Livestock Insurance Scheme, the following eligibility criteria must be met:

  • The scheme is open to all livestock owners, including individual farmers, dairy cooperatives, and other organizations involved in animal husbandry.
  • Livestock must be insured within a specified age group, usually between 2 to 8 years for cattle and buffaloes.
  • Animals should be healthy and free from any pre-existing diseases at the time of insurance.
  • A veterinary certificate confirming the animal’s health condition is mandatory.

4. How to Apply for Livestock Insurance?

The application process for the Livestock Insurance Scheme is straightforward and farmer-friendly:

  1. Identify the Insuring Agency: Farmers can contact approved insurance companies or banks that are authorized to provide livestock insurance. The list of empaneled insurance companies is available at local animal husbandry offices.
  2. Submit Application: Fill out the application form provided by the insurance company, along with required documents such as a veterinary health certificate, identity proof, and details of the livestock.
  3. Payment of Premium: Pay the subsidized premium amount. The insurance company will provide a receipt and insurance certificate.
  4. Claim Process: In the unfortunate event of the animal’s death, the farmer must notify the insurance company within 24 hours. A veterinary officer will conduct an inspection, and the claim will be processed promptly.

5. Benefits of the Livestock Insurance Scheme

  • Financial Security: Provides compensation to farmers in the event of loss, safeguarding them from financial distress.
  • Encourages Better Animal Care: Insured animals are often better cared for, reducing overall mortality rates.
  • Enhanced Productivity: By mitigating risks, farmers are more likely to invest in high-quality breeds, improving productivity and income.
  • Risk Management: Provides a reliable risk management tool for farmers, ensuring their investments are protected.

6. Challenges and Way Forward

Despite its benefits, the scheme faces certain challenges:

  • Awareness: Many farmers, especially in remote areas, are unaware of the scheme’s existence or benefits.
  • Complex Claim Process: In some cases, delays in claim settlement and cumbersome paperwork can discourage farmers.
  • Insurance Penetration: The reach of livestock insurance is still limited compared to the vast number of livestock farmers in India.

Way Forward:

  • Strengthening awareness campaigns through local governance bodies and farmer groups.
  • Simplifying the claim settlement process with the help of digital platforms.
  • Expanding the scheme to cover more types of livestock and risks, ensuring broader coverage.

Conclusion

The Livestock Insurance Scheme is a vital tool for safeguarding the economic interests of India’s livestock farmers. By providing financial security and encouraging better livestock management, the scheme plays a critical role in enhancing the resilience of rural communities. For sustainable and inclusive growth in the livestock sector, it is imperative that more farmers are brought under the ambit of this scheme, ensuring a secure and prosperous future for millions of livestock owners across the country.

Top 20 FAQs on the Livestock Insurance Scheme

Here are the most frequently asked questions about the Livestock Insurance Scheme, along with detailed answers to help farmers and livestock owners better understand the scheme.

1. What is the Livestock Insurance Scheme?
The Livestock Insurance Scheme is a government initiative that provides insurance coverage to farmers against the loss of their livestock due to death, disease, accidents, or natural calamities, offering financial security and promoting sustainable livestock management.

2. Which animals are covered under the scheme?
The scheme generally covers milch cattle (cows and buffaloes), sheep, goats, pigs, and other livestock, depending on the guidelines provided by the respective insurance company and the local animal husbandry department.

3. Who is eligible for the Livestock Insurance Scheme?
All livestock owners, including individual farmers, dairy cooperatives, and organizations involved in animal husbandry, are eligible. The livestock must be healthy and within the specified age group (usually 2 to 8 years for cattle).

4. What risks are covered under the Livestock Insurance Scheme?
The scheme covers risks such as death due to disease, accidents, natural calamities, surgical operations, and other specified events that may result in the loss of the insured livestock.

5. What is the duration of the insurance coverage?
The insurance coverage is typically available for one to three years, depending on the farmer’s preference and the terms set by the insurance provider.

6. How is the insurance premium calculated?
The premium is calculated based on the market value of the livestock, with the government subsidizing up to 50% of the premium to make it affordable for farmers.

7. How can a farmer apply for livestock insurance?
Farmers can apply through authorized insurance companies, banks, or animal husbandry offices. The application involves submitting a filled-out form, a veterinary certificate, and paying the subsidized premium.

8. What documents are required for applying for livestock insurance?
The required documents typically include a veterinary health certificate, the livestock owner’s ID proof, bank details, and a completed application form provided by the insurance company.

9. How is the sum insured determined?
The sum insured is usually the current market value of the livestock, determined by a valuation committee comprising a veterinarian, insurance agent, and the farmer.

10. What should a farmer do in case of the death of an insured animal?
The farmer must immediately inform the insurance company within 24 hours of the animal’s death and arrange for a veterinary officer to conduct an inspection to facilitate the claim process.

11. How long does it take to settle a claim?
Claims are generally processed within 15-30 days from the date of submission of the complete claim form and required documents, though this can vary depending on the insurance provider.

12. Can farmers renew their livestock insurance?
Yes, farmers can renew their insurance at the end of the coverage period, either annually or for longer durations, depending on the terms set by the insurer.

13. Are there any exclusions under the Livestock Insurance Scheme?
Exclusions can include pre-existing diseases, intentional harm, death due to negligence, war, nuclear risks, and other specific conditions outlined by the insurance company.

14. Is there any age restriction for livestock to be insured?
Yes, most insurance companies cover livestock within a specified age range, usually between 2 to 8 years for cattle and buffaloes. Age restrictions may vary for other types of livestock.

15. How can a farmer check the status of their claim?
Farmers can check the claim status by contacting the insurance provider directly, using their policy number and claim reference details. Some companies also offer online tracking facilities.

16. Is there a maximum number of animals that can be insured under the scheme?
The maximum number of animals that can be insured varies by policy and insurance provider. Generally, there is no strict limit, but group policies may have different rules compared to individual policies.

17. What is the role of a veterinary officer in the Livestock Insurance Scheme?
A veterinary officer assesses the health of the animal before insurance, provides certification, and inspects the animal in the event of a claim to verify the cause of death or illness.

18. Can livestock insurance be transferred if the animal is sold?
Insurance is generally non-transferable. However, some policies allow for the transfer of insurance under specific conditions. It’s best to check with the insurance provider for exact terms.

19. Are indigenous breeds covered under the scheme?
Yes, the scheme covers indigenous as well as crossbred animals, with a focus on promoting high-value and genetically superior breeds.

20. How can farmers get more information about the Livestock Insurance Scheme?
Farmers can get detailed information from their nearest animal husbandry office, insurance providers, agriculture extension offices, or through online portals of authorized insurance companies.