insurances (livestock) (1).docx
TRANSCRIPT
“LIVESTOCK INSURANCE”
BACHELOR OF COMMERCE
(BANKING & INSURANCE)
SEMESTER VI
(2013-2014)
BY
NAMRATA BHANUDAS PATIL
T.Z.A.S.P.MANDAL’S
PRAGATI COLLEGE OF ARTS & COMMERCE
NANDIVALI ROAD,
DOMBIVLI (E)
1
“LIVESTOCK INSURANCE”
BACHELOR OF COMMERCE
(BANKING &INSURANCE)
SEMESTER VI
(2013-14)
SUBMITTEDIN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF DEGREE OF BACHELOR OF COMMERCE – BANKING & INSURANCE
BYNAMRATA BHANUDAS PATIL
SEAT NO.
T.Z.A.S.P.MANDAL’S
PRAGATI COLLEGE OF ARTS & COMMERCE
NANDIVALI ROAD,
DOMBIVLI (E)
2
T. Z. A. SHIKSHAN PRASARAK MANDAL’S
PRAGATI COLLEGE OF ARTS & COMMERCE
DOMBIVLI (E).
CERTIFICATE
(2013 – 2014)
Date:-
Place:-
This is to certify that MISS. NAMRATA BHANUDAS PATIL of
B.Com (Banking & Insurance) Semester VI (2013-2014) has successfully
completed the project on “LIVESTOCK INSURANCE” under the
guidance of PROF.CHANDAN SINGH.
(Prof.Swati pusalkar) (Dr. A. Mahajan)
(Course Co-ordinator) Principal
(
(Prof.Chandan Singh) External ExaminerProject Guide
3
DECLARATION
Date:-
I, Ms. NAMRATA BHANUDAS PATIL the student of B.COM
(Banking & Insurance) Semester VI (2013-2014) hereby declare that I
have completed the project on “LIVESTOCK INSURANCE”
The information submitted is true and original to the best of my
knowledge.
(NAMRATA BHANUDAS PATIL)
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ACKNOWLEDGMENT
At the outset, I would like to thank Almighty GOD for his shower of
blessings. The desire of completing this dissertation was given by my
guide Prof.Mr.Chandan Singh. I am very much thankful to her for the
guidance, support and for sparing her precious time from a busy and
hectic schedule.
I am thankful to Dr. A.P. Mahajan, Principal of Pragati College. My
sincere thanks to our co-ordinator Prof. Mrs. Swati pusalkar who always
motivated me and provided a helping hand for conceiving higher
education. I hereby take an opportunity to extend my sincere thanks to
Financial Institutions who provided me valuable information regarding
my topic of dissertation.
I would fail in my duty if I don’t thank my parents and sister who are
pillars of my life and my friends who have always supported and
motivated me. Finally, I would express my gratitude to all those persons
who directly and indirectly helped me in completing my dissertation.
NAMRATA BHANUDAS PATIL
5
TABLE OF CONTENTS
Sr. No. Contents Page No.
1. LIST OF TABLES I.
2. LIST OF FIGURES II.
3. EXECUTIVE SUMMARY III.
4. OBJECTIVE IV.
5. RESEARCH METHODOLOGY V.
4. CHAPTER I - Insurance
1.1. Introduction
1.2. Meaning
1.3. Definition
1.4. Types of Insurance
1.5. Characteristics
1.6. Function
1.7. Objectives
1.8. Research methodology
1.9. Limitation of Study
1
6. CHAPTER II – Livestock Insurance
2.1. Introduction
2.2. Livestock insurance in India
2.3. Origin
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6
2.4. Need for cattle insurance
2.5. Farming practices
2.6. Disease
2.7. Advantages of livestock shield
2.8. Cattle insurance
2.9. Exclusion
7. CHAPTER III –Important aspects of livestock
insurance
3.1 livestock insurance schemes & benefits
3.2 Animals to be cover under the schemes &
elections of beneficiary
3.3 Change of owner during the validity period
3.4 Settlement of claims
3.5 Livestock Insurance Programs & Benefits
Investments
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8. CHAPTER IV– Insurance company Profile
4.1 General Insurance Company
4.2 New India Assurance
10. CHAPTER V – DATA ANALYSIS
&INTERPRETATION
11. CHAPTER VI – FINDINGS SUGGESTIONS
& CONCLUSION
7
12. Annexure I
13. Bibliography
8
LIST OF TABLES
Sr.no Contents Pg.no1 2.1 Livestock Penetration 122 2.2 Disease 153 5.1Awareness of livestock Insurance 414 5.2 Number of insurance policy taken 425 5.3Number of livestock owned 436 5.4 Claim Settlement Process Easy Or
Convenient44
7 5.5 Free medical checkup facility under the
policy provided by the insurance company
45
8 5.6 Awareness about the loan facility given for developing cattle shed by the insurance company.
46
9 5.7 Awareness of benefits covered under livestock insurance policy
47
10 5.8 Premium plan 4811 5.9 Types of risk coverage 49
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LIST OF FIGURES
Sr.no Contents Pg.no1 3.1 Livestock Insurance Company 322 5.1 Awareness of livestock Insurance 413 5.2 Number of insurance policy taken 424 5.3Number of livestock owned 435 5.4 Claim Settlement Process Easy Or
Convenient44
6 5.5 Free medical checkup facility under the
policy provided by the insurance company
45
7 5.6 Awareness about the loan facility given for developing cattle shed by the insurance company.
46
8 5.7 Awareness of benefits covered under livestock insurance policy
47
9 5.8 Premium plan 48
10
EXECUTIVE SUMMARY
The importance of livestock Insurance is increasing gradually in India before the nationalization of General Insurance. Some Insurance companies 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.
Various 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.
Livestock refers to domesticated animals that may be kept or raised in pens, houses, pastures, or on farms as part of an agricultural or farming operation, whether for commerce or private use.
Livestock constitute major sources of epidemic disease in humans; these disease have had a significant impact on history. When 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 consequences.
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 is arranged on a sort of the excess basis, and provides for a payment of amount in excess of a certain other amount which is known as first loss.
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CHAPTER 1INSURANCE
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 exchange 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. We say “significant” because if
the potential loss is small, then it doesn’t make sense to pay a premium to
protect against a $50 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 LifeInsurance as an example. If you are
the primary breadwinner in your home, the loss of income thatyour
family would experienced 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. As 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 unequal, equal. 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 (Life Insurance) and, accidents and
burglary. Thus, collective bearing of risks is Insurance.
1.1DEFINITIONS
The term ‘Insurance’ has been defined by different experts on the subject.
The views expressed by them through various definitions can be
classified into the following three categories for the convenience of the
study:
General or Social Definitions.
Functional/ Economics/ Business Definitions.
Contractual/ Legal Definitions.
1.2TYPES OF INSURANCE
(A) LIFE INSURANCE
Term Life Insurance
Permanent Life Insurance
(B)GENERAL INSURANCE
Fire Insurance
Marine Insurance
Accident Insurance
Livestock Insurance
1.3CHARACTERISTICS OF INSURANCE
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Sharing of risks: Insurance is a cooperative device to share
the burden of risk which may fall on happening of some
unforeseen events, such as the death of head of the family,
or on happening or marine perils or loss of by fire.
Evaluation of risk: For the purpose of ascertaining the
Insurance premium, the volume of risk is evaluated, which
forms the basis of Insurance contract.
Payment on happening of specified event: On happening
of specified event, the Insurance Company is bound to
payment to the insured. Happening of the specified event is
certain in life Insurance; but in the case of fire, marine or
accidental Insurance, it is not necessary.
Amount of payment: The amount of payment in indemnity
Insurance depends on the nature of losses occurred, subject
to maximum of the sum insured. In life Insurance, however,
a fixed amount is paid on the happening of some uncertain
event or on the maturity of the policy.
Protection against risks: Insurance provides protection
against risks involved in life, materials and property. It is a
device to avoid or reduce risks.
Spreading of risk: Insurance is a plan which spread the
risks and losses of few people among a large number of
people.
Large number of insured persons:The success of
Insurance business depends on the large number of persons
insured against similar risk. This will enable the insurer to
spread the losses of risk among large number of persons,thus
keeping the premium rate at the minimum.
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A contract:Insurance is a legal contract between the insurer
and insured under which the insurer promises to compensate
the insured financially within the scope of Insurance policy,
and the insured promises to pay a fixed rate of premium to
the insurer.
1.4FUNCTIONS OF INSURANCE
The Functions of Insurance may be categorized as below:
I. Primary Functions
II. Secondary Functions
III. Other Functions
I. Primary Functions
The primary Functions of Insurance include the following:
1. Provide protection: 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. Collective bearing of risk:Insurance is a device to share the
financial loss of few among many others. The collective bearing
of risks is Insurance. All the insured’s contribute the premiums
towards a fund and out of which the persons exposed to a
particular risk is paid.
3. Evaluation of risks: Insurance determines the probable volume
of risk by evaluating various factors that give rise to risk. Risk
is the basis for determining the premium rate also.
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4. Provide certainty against risk: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.
5. Spreading risks:Insurance is the device for spreading or
distributing risks.
II. Secondary Functions
The Secondary Functions include the following:
1. Prevention of losses: Insurance cautions individuals and
businessmen to adopt suitable device to prevent unfortunate
consequences of risk by observing safely instructions;
installation of automatic sparkler or alarm systems,etc.
2. Small capital to cover larger risks: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. Contribute towards the development of larger
enterprises:Insurance provides development opportunity to
those larger enterprises having more risks in their setting up.
Even the financial institutions may be prepared to give credit
to sick industrial units which have insured their assets
including plant and machinery.
III. OtherFunctions
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There are indirect functions of Insurance which benefit the
economy indirectly. Some of such Functions are:
1. Means of saving and investment:Insurance serves as
Savings and investment. Insurance is a compulsory way of
saving and it restricts the unnecessary expenses by the
insured. For the purpose of availing income-tax exemptions
also, people invest in Insurance.
2. Source of earning Foreign exchange: Insurance is an
international business. The country can earn foreign
exchange by way of issue of marine Insurance policies.
3. Promotes exports:Insurance makes the foreign trade risk
free through different types of policies issued under marine
Insurance cover.
4. Provides Social security: Through various social
protection plans, the Insurance provides social security to
people. It not only provides security atthe time of death but
also provides assistance to the insured’s at the time of
sickness, old age, maternity etc.
1.5 OBJECTIVES
To know about livestock insurance
To explore the farming practices.
To understand the insurance coverage in livestock insurance.
To understand the schemes & its benefits.
To know about the settlement claim procedure.
To know about the protection programs organized by the
insurance company.
To understand the exclusion in livestock insurance.
To know about the New India Assurance.
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1.6RESEARCH METHODOLOGY
Primary Data:
I have collected the primary data on this topic from 30 respondents living in Dombivli area. I prepared a well-structured questionnaire for the same. On the basis of convenience, I analyzed the data and presented the data in the form of tables and diagrams.
Secondary Data:
I have collected the secondary data from books, newspapers and the web.
Sample size:
Sample size refers to the number of respondents to be selected to constitute a sample. Sample size should be optimum. The sample size of the survey was conducted for 30 respondents.
1.7LIMITATIONS OF STUDY
Analysis is based from data collected from Dombivli area only.
Study is subject to limitation of time i.e. 3 months.
The data is collected only from 30 respondents.
CHAPTER 2
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LIVESTOCK INSURANCE
2.1INTRODUCTION
The importance of livestock Insurance is increasing gradually in India
before the nationalization of General Insurance. Some Insurance
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, oxes, buffaloes,
camels, horses, dogs, etc. can be made. The object of this Insurance is to
provide economic assistance to farmers in the case of death or accident of
these animals.
Livestock refers to domesticated animals that may be kept or raised in
pens, houses, pastures, or on farms as part of an agricultural or farming
operation, 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.
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Throughout history, livestock have been considered to bea form of
wealth. Livestock are mentioned in many parts of the Bible 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.
Many forms of livestock are herbivorous mammals. Various types of
livestock are reared depending on the local conditions: 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 prerequisites
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 question 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 inadequate and seek tighter controls, and in extreme cases
seeks the banning of the ownership of animals and the making the
consumption of meat, dairy and other animal products illegal. Some
Farmers have developed management techniques that they believe are
more enlightened and progressive and that they feel address most of the
concerns of lobbyists.
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2.2LIVE STOCK INSURANCE IN INDIA
The livestockInsuranceprogram was started in 2002 in the village of
Kibber, in the Spiti Valley of India's northern state of Himachal Pradesh.
(The grazing reserve had been initiated three years before, in 1999.)
About 41 of the 68 herding families participated in the livestockInsurance
program between 2003 and 2004. In all, 184 head of livestock were
covered by the Insurance program.
In 2004, the program was expanded to include three smaller
villages nearby--Gete, Tashigang, and Kee. More than 60 percent of the
families with insurable livestock in those villages have already
enrolled. Implementation of a livestock Insurance program is also
underway in the village of Chichim.
Eventually, it's 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 expand the program to other parts of northern India. Discussions
with community leaders have already begun in the Gya-Miru region, in
the Indian state of Ladakh.
The Trust has gradually been decreasing its financial support of the
livestockInsuranceprogram, as the Insurance fund has built surplus funds
year by year. By 2010, it's hoped that the program will become self-
sustaining.
2.3Origin of Livestock Insurance
Various 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.
22
In other cases, livestock could be used to supplement unreliable or
uneconomical cereal crops. Raising livestock is less dependent on good
weather and is less labour incentives than most forms of plant agriculture.
Animals could graze on pasture unfit for human consumption.
For example, in Italy and Spain during the middle ages and early
modern period, sheep were extremely important for an economy. The
often dry weather and increasing number of crop failures during the 16th
century encouraged landlords and other investors to switch from grain
production to livestock-raising. Massive sheep migrations were regulated
by the governments, and formed a large portion of the tax 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
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 Europe, livestock was
usually held in smaller numbers. In these areas, higher levels of rainfall
allowed for large animal such as cows to be raised. Many cultures had
provisions for common grazing land.
2.4 Need for Cattle Insurance
Risk reduction mechanisms are working poorly
- Poorly executed vaccination and other prophylactic
measures
- Lack of good breeding and genetic improvement methods
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- Improper feeding and sheltering facilities with the farmers
- Poor rural veterinary infrastructure – soft as well as hard
- Insurance product presently offered are limited to
catastrophic death and disability covers.
Low penetration of livestock Insurance with <10% cattle insured
due to
- Slim Covers
- Problem with Distribution Channels
- Literacy and awareness
Table 2.1
24
YEAR
Livestock
Penetration
Present 6.58%
2007-08 11.50%
2008-09 16.50%
2009-10 21.50%
2010-11 26.50%
2011-12 31.50%
2.5 Farming Practices
At 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.
Livestock 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”. Herding dogs such as sheep dogs
and cattle dogs may be used for mustering as are cowboys, musterers and
jackaroos on horseback or in helicopters. Since the advent of barbed wire
(in the 1870s) 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. Because of
their size, the quantity 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.
Livestock may be branded, marked, or tagged to denote ownership
or for inventory, breeding, health management, product identification and
tracing, or other purpose.
Modern farming techniques mainly focus on the automation of the
various tasks involved and human intervention to increase yield and
improve animal health. Successive improvements of traditional
25
techniques have mostly focused on these same goals. Economics, quality
and consumer safety all play a role in how animals are raised. Drug use
and feed supplements (or even feed type) may be regulated, or prohibited,
to ensure yield is not increased at the expenses of consumer health, safety
or animal welfare.
Practices vary around the world, for example growth hormone use is
permitted in the United States but not in the European Union or in
countries selling meat/produce in the EU such as Australia and New
Zealand.
2.6DISEASE
Livestock constitute major sources of epidemic disease in humans;
these diseases have had a significant impact on history. When 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 consequences.
The following tables lists disease which originally infected
livestock and can now infect humans:
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Disease Sources animal
Smallpox Cattle
Tuberculosis cattle
Measles cattle
Influenza Pigs, ducks
Pertussis Pigs, dogs
Table 2.2
Other disease can be transmitted from animals. Mad 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-Jakob disease (Cjd). Though
this connection has not been conclusively proven, over 95% of identified
cases of VCJD are in Britain, which suffered a mad cow disease epidemic
in the mid to late 1980s. Mad cow disease has led to a using cattle by-
products in cattle feed.
Other disease may be transmitted from livestock to humans include
bird flu and some may originate from the bacteria E. coli O157:H7. Also,
anthrax was called the woolsorter’s disease because the skin form of the
disease could be contracted from handling raw wool. Anthrax may be
contracted from cattle, sheep goats, camel and antelopes as well as
directly from infected soil.
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The use of antibiotics in animals that end up in the human food
chain is controversial. The issue of antibiotic resistance has limited the
practices of preventative dosing such as antibiotic-laced feed.
Livestock are also subject to other diseases. Veterinary certificates are
often required before transporting, selling or showing animals. Disease –
free areas are often rigorously enforced. Foot and mouth disease (FMD)
led to a massive government sheep and cattle in the north of England in
2001. Six million animals were killed to shop an outbreak with 2000
confirmed cases. Bison which wander out of Yellowstone National Park
are routinely shot to prevent the possible spread of brucellosis to Montana
cattle.
2.7CATTLE INSURANCE
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 is
arranged on a sort of the excess basis, and provides for a payment of
amount in excess of a certain other amount which is known as first loss.
The policy excludes, inter alia, destruction in compliance with any staute
or order of any government or local authority, or in case of unfitness or
28
incapacity from fulfilling duties for which the animal is kept. Any death
arising out of castration or other surgical operation is also excluded. The
number of animals covered by cattle Insurance in India has increased
from 2-10 lakhs in 1976 to 43-72 lakhs in 1980, 160-79 lakhs in1985 and
256-22 lakhs in 1988-89.
The cattle and livestock Insurance was demanded since
independence. No worth mentioning progress was made till 1972 when
the general Insurance was nationalized. Recently some progress has made
and figure of the progress is available since 1982.Cattle and livestock
Insurance have included cattle, sheep and goat, horse/pony/mule, pig,
camel, duck, rabbit, elephant and dog.
Cattle Insurance schemes : The cattle Insurance policy under
market agreement covers milch cows, and buffaloes, calves / heifers, stud
bulls, bullocks and castrated male buffaloes where.
Sheep and Goat Insurance
Sheep and Goat Insurance provides indemnity to indigenous cross-
bred and exotic sheep and goat. Animal against death of sheep and goats
due to accident. Including Fire, lighting, Flood, cyclone, Famine,
earthquake, landslide, Strike, Riot or diseases contracted or occurring
during the period of Insurance.
This policy is available to persons having sheep and Goat of either
sex certified as being in sound and perfect health and free from injury or
29
disease by a veterinary doctor/ surgeon and who are Members(in groups)
of Micro Finance Institutions, Non-Government organizations,
Government Sponsored Organizations and such affinity groups /
institutions in rural and social sector.
Horse/pony/mule Insurance:
The policy for Horse/pony/mule Insurance includes draught horse’s half
draught horses, ponies, mules against death due to accidents and/or
specified disease contracted during the period of Insurance and subjected
to usual terms, conditions and exclusions of Insurance and subjected to
usual terms, conditions and exclusions of the policy. The age group for
such animals to be insured are 2 years to 8 years. The age group for such
animals to be insured. The sum assured is 100% market value or bank
loan which is higher. The non-scheme animals are charged premium at
the rate of 4% of sum assured where as the sachem animals are charged at
2.75% annum.
Pig Insurance:
30
Pig Insurance policy covers death risk due to accident or disease.
The minimum number of animals. Covered is 10 Swire fever disease is
excluded. The age group insurable is one month to 5 years. All
indigenous cross-bred and exotic pigs are insured. The maximum sum
insured per pig is Rs.500. The premium rate is 6% annum but pigs under
SFDA/IRDA scheme are charged at 3.5 % per annum. The sum assured
will be linked to 100% of market value for assured breeding farms
whereas in other cases it is 805 of marker value for organized breeding
farms whereas in cases it is 80 % of market value.
Camel Insurance:
The camel Insurance policy is applicable to all male and female
camel in India including camel subsidized. By SFDA/DPAP/MFAL
between ages group of 3 years to 10years. The sum assumed will be 80 %
market value or bank finance. The maximum sum insured id Rs. 3000 in
cases of bank finance SFDA/DPAP/MFAL. In case of PTD claim, 75%
of sum assured is payable. The premium rate is 4 % annum for –IRDA
schemes camels and 2.25 %( net) for IRDA scheme camel. ‘surra’ disease
is excluded. The minimum premium is Rs. 25 per annum per animal. The
31
policy provides indemnity only for death due to accident inclusive of
floor, eye lone famine or disease inclusive of Rinderpest, Blackquater,
haemorrhagic septicaemia Antrax contracted or occurring during the
period of policy or strike, riotand civil common risk. The excluclusion on
are common and specific exclusions.
Rabbit Insurance:
The rabbit Insurance policy is applicable to all breeds of rabbit in
India, in the age group of 1 day to 4 years, but death of rabbit due to
disease till they complete the age of 30 days is not covered. The risk
covered are, death of rabbits due to accident and / or disease contracted
during the period of Insurance. The exclusions have common exclusion
as described in camel Insurance and specific exclusions of transport by
air and sea, perm ant and specific exclusions of transport by air and sea,
permanent and partial disable intentional slaughter, undergrowth,
myxoomatosis and coocidissis. The insured is composed only 70 % of the
sum assured, the rate of premium is 7% of sum assured.
Elephant Insurance:
32
The elephant Insurance policy indemnifies the owner for death due
to accident or disease contracted or occurring during the period of
Insurance subject to certain exclusions stipulated. The insurable age
group is one year to 60 years. The policy is applicable to the elephants
including those owned by temple, circus companies and individuals. The
sum assured is 80% of market value. The value of sum assured does not
exceed Rs. 50,000. The premium rate is 5% per annum. The common
exclusions clause as mentioned under Cattle Market Agreement is also
applicable in this case. Specific exclusions are surgical operations,
disability, breeding and calving and certain specific diseases such as
tubereulosis, foot and mouth diseases etc.
Dog Insurance:
The dog Insurance policy insures the risks against due to accident and/
or disease contracted during the period of Insurance subject to usual
theory and conditions. The Insurance age group is 8 weeks to 8 years.
Dogs of indigenous cross-bred and exotic breed should not be less than
Rs. 200 and maximum value of any dog should not exceed Rs. 2,000 each
dog. The premium rate is 5% 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.etc…
33
2.8EXCLUSIONS
Death of the animals, arising out of the following are excluded
1 War and allied risks, strikes, riot and civil commotion;
2 Slaughter of the animal without prior consent of the insurers;
3 Fire, 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.
2.9Advantage Livestock Shield
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.
Animals that can be covered:
Cows, buffaloes, bullocks, camels, sheep, goats, horses, ponies and
mules.
Valuation & sum insured:
Identification and valuation will be as per the veterinary certificate
and or declaration of the purchase committee. Ear-tags will be supplied
by the company.
34
Benefit limits:
Claims will be settled for the sum insured or market value prior to
illness, whichever is less.
Premium:
Livestock Shield offers this cover at an affordable premium of 4%
per annum on the sum insured.
Uses:
Historically, livestock has provided the following benefits to
humanity.
Meat:
In many agricultural societies, livestock replaced wild game as the
primary source of source of animal protein. Livestock frequent eat forage
and other food sources that humans are unable (or prefer not ) to eat and
convert them to types of food that humans can eat.
Dairy products:
Mammalian 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 dairing
countries the number of products made from milk range in the 20 to
30 types. Using livestock for this purpose can often yield several times
the food energy of slaughtering the animal outright.
Honey and Wax :
Bees collect pollen and honey from plants and process them into
products that are useful to human survival. Honey is a food and a
medicinal product (for external application and internal use) , beeswax is
still used for expensive candles.
35
Raw materials:
A variety of useful materials are produced by livestock. Some animal,
such as sheep, grow thick coats that can be shorn and used in textiles.
Animal, such as cows, deer and sheep have a tough skin which can be
made into leather. The bones, hoofs and horns of livestock have also been
employed in a variety of industrial, cultural and decorative uses. Most
animal offal and non-edible parts are transformed into products such as
stock-feed and fertilizer. Larvae make silk that is woven into fabric.
Fertilizer:
Livestock 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.
Parts 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.
Labour :
Livestock often serves as an important source of mechanical energy.
Before the advent of steam power, livestock was often the only source of
non-human labour available. Livestock can be used to pull ploughs and
other agricultural equipment (again increasing farm yields) , transport
goods across large distances and to serve important military functions.
Draft animal are often bred for desirable qualities such as endurances,
strength and, in military usage, aggression.
Labour management:
36
The grazing of livestock is something used as a way to control weeds
and undergrowth on an area of land. For example 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.
CHAPTER 3
37
IMPORTANT ASPECTS OF LIVESTOCK
INSURANCE.
3.1 Livestock Insurance Schemes and Benefit
The Livestock Insurance Scheme, a centrally sponsored scheme, is
being implemented on a pilot basis during 2005-06 and 2006-07 of the
10th Five Year Plan in 100 selected districts.
Under the scheme, the crossbred and high yielding cattle and
buffaloes are being insured at maximum of their current market price.
The premium of the Insurance is subsidized to the tune of 50%.
The entire cost of the subsidy is being borne by the Central
Government. The benefit of subsidy is being provided to a maximum of 2
animals per beneficiary for a policy of maximum of three years.
The scheme is being implemented in all states except Goa through
the State Livestock Development Boards of respective states.
38
The scheme will be extended in 11th Five Year Plan covering entire
country and more species of livestock depending on its performance
during the pilot period.
The Livestock Insurance Scheme has been formulated with the twin
objective 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 qualitative improvement
in livestock and their products.
3.3 Determination of market price of the animal
An animal will be insured for the maximum of its current market
price. The market price of the animal to be insured will be assessed
jointly by the beneficiary, authorized veterinary practitioner and the
Insurance agent.
Identification of insured animal
The animal insured will have to be properly and uniquely
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 fixing microchips could
be used at the time of taking the policy.
The cost of fixing the identification mark will be borne by the
Insurance companies and responsibility of its maintenance will lie
on the concerned beneficiaries. The nature and quality of tagging
39
materials will be mutually agreed by the beneficiaries and the
Insurance Company.
3.4Change of owner during the validity period of Insurance
In case of sale of the animal or otherwise transfer of animal from
one owner to other, before expiry of the Insurance Policy, 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. required for transfer, should be decided while entering
into contract with the Insurance company.
III.5 Settlement of Claims
In case of claim becoming due, the payment of insured amount
should be made within 15 days positively after submission of
requisite documents.
Only four documents would be required by Insurance companies
for settling the claims viz. FIR with the Insurance Company,
Insurance Policy, Claim Form and Postmortem Report. While
insuring the animal, CEOs must ensure that clear cut procedures
are put in place for settlement of claims and the required
documents are listed and the same is made available to concerned
beneficiaries along with the policy documents.
All documents/forms for insuring as well as settling the claims
should be made available by the Insurance agency in local
language and English language.
40
Livestock policies
Buying a livestock Insurance policy is one risk
management option. Producers should always
carefully consider how a policy will work in conjunction with their other
risk management strategies to insure the best possible outcome
III.6 LIVESTOCK INSURANCE PROGRAMS AND BENEFIT
The Leopard Insurance Program saves Snow Leopards
The Livestock Insurance program saves snow leopards by reducing
human-snow leopard conflicts. Wen 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 ways:
The program provides sustainable incentives for good herding
practices that keep domestic livestock away from snow leopards. Bonuses
are paid out of the Insurance fund to herders who have no livestock lost
during 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). When wild prey is abundant
and healthy, snow leopards are less likely to turn to domestic livestock
for food.
41
Indeed, the population of bharal, or blue sheep, in the area has
increased three-fold since this grazing reserve was started. Bharal 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.
Livestock Insurance Program helps families
The livestock Insurance program helps families by compensating them
financially for livestock lost to snow leopards, leading to higher, more
stable household incomes. Families 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 $400-600 (US). In this area, a
yak is worth an average of $213 (US), and a horse $170(US). In other
words, loss of an animal to a snow leopard or other predator represents a
real financial hardship for herding families.
Livestock Insurance Program helps Communities
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-Himalayan region, villages are traditionally
led by a village council, which is made up of community members
appointed on a rotating basis, and the village council.
42
Functions democratically to settle disputes and make other collective
decisions, has played an important role in the livestock Insurance
program from the beginning.
When the livestock Insurance program was being developed, the
council led discussions about how Insurance claims would be evaluated
and paid, and helped set compensation levels for different kinds of
livestock. The council also collects the monthly Insurance premiums from
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 projects that benefit the entire
community.
Finally, 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.
43
3.6 Companies that provide Cattle Insurance
Figure 3.1
44
Companiesthat provide Livestock InusranceLivestock Insurance SchemeBharat AXA General InsuranceUnited India Insurance Company LtdGeneral InsuranceCo-operation Of India
CHAPTER 4INSURANCE PROFILE
4.1 GENERAL INSURANCE COMPANY
The Insurance Cooperation of India (GIC) 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. Animals are normally insured up to 100% of
their market value. The position regarding number of cattle covered,
premium collected and claims paid since 1994 – 95. 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 % of animals covered.
CATTLE INSURANCE
This is an agreement between the four subsidiaries of GIC of INDIA in
respect of Cattle Insurance business and shall be observed by all the four
companies with regards to rates, term and conditions prescribed by this
agreement.
1. Applicability
Applicable to indigenous, cross-bred and exotic cattle owned by
belonging to private owners, various financial institutions. i.e.
Bank Financed, Military dairy farms, co-operative / corporative
dairies, etc.
Cattle mean and include:
Milch cows and buffaloes
Calves /Heifers
45
Stud Bulls
Mithuns
2. AGE GROUP
Milch cows – 2yearso or age at first calving to 10 years.
Milch buffaloes 3 years or earlier age at sexual maturity to 8 years.
Bullock /He Buffaloes 3 years to 12 years.
Calves / Heifers 4month’s upto date of 1st calving.
[No relaxation in upper age limits is allowed]
Upper insurable age shall be treated as the maximum permissible
insurable age at the inception of the policy [Annual]. Kindly refer
to the Circular No. HO.RID; 08/95-96CR-4297 dated 10/04/96.
3. Valuation
Valuation based on market value as in date and place and to
be decided on the basis of recommendations of the local veterinary
surgeon .
4. Sum Insured
Not exceeding market value.
5. Transit Cover
No extra premium to be charged for transit of animal from place
to purchase to place of stabling if distance is upto 80 kms.
In case of transfer of animal during currency of policy, transit
cover can be extended to the new owner without any additional
premium in case the transit distance is within 80 kms.
46
4.2THE NEW INDIA ASSURANCE
New India is a leading global insurance group, with offices and
branches throughout India and various countries abroad. The company
services the Indian subcontinent with a network of 1068 offices,
comprising 26 regional offices, 393 Divisional offices and 648 branches.
With approximately 21000 employees, New India Assurance has the
largest number of specialist and technically qualified personnel at all
levels of management, who are empowered to underwrite and settle
claims of high magnitude.
New India has been rated “A” (Excellent) by A.M. Best Co.,
making it only Indian insurance company to have been rated by an
international rating agency. Rating based on following factors:
Superior Capital Position
Strong Operation Performance
Only Company 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 quality at affordable cost.
VALUES
Highest priority to customer needs.
High standards of public conduct.
Transparency in operations.
47
CATTLE INSURANCE POLICY
A smart first step
Smart policy benefit
Eligibility
Exclusions
A smart first step
The New India Assurance provides Cattle insurance compensate for death
of cattle like milch cows, buffaloes, calves/heifers, stub bulls, bullocks,
and mithuns.
Smart policy benefit
The policy compensates for death of cattle due to:
Accidents(including fire, riots strike and civil commotion)
Surgical operations
Diseases contracted or occurring during the period of the policy
The policy can be extended to cover permanent Total Disability on
payment of extra premium, which in case of
Milch cattle result in permanent and total in capacity to conceive or
yield milk.
Stub bulls; result in permanent and total incapacity to breed.
Bullocks, calves, heifers and castrated male buffaloes, result in
permanent and total incapacity for the purpose of use mentioned in the
proposal form.
ELIGIBILITY
The policy provides cover to cattle in identified age groups, as per
the policy terms and conditions
48
HIGHLIGHTS
1. This scheme covers the following whether indigenous, exotic or
cross-bred.
a. Milch Cows and Buffaloes.
b. Calves/Heifers
c. Stud Bulls
d. Bullocks (Castarted Bulls) and Castarted Male Buffaloes,
2. Animal within a specified age group are accepted under the
Standard Insurance Scheme.
3. Sum Insured Under the policy will be the Market Value of the
animal.
4. Indemnity Under the policy will be the Sum Insured or market
Value prior to illness whichever less is. The indemnity is limited to 75 %
of Sum Insured in case of a PTD claim.
5. The basic premium rate per annum is 4% of the sum Insured. Long
term policies are also issued with long term discounts.
6. The premium rates under the policy are concessional for covering
animals under government subsidized schemes.
7. Group discount are also available.
Insurance Coverage The policy shall give indemnity for death due to.
Accident (Inclusive of Fire, lighting, flood, inundation, storm,
hurricane, earthquake, cyclone, tornado, tempest and famine).
Diseases contracted or occurring during the period of this policy.
Surgical Operations.
Riot and Strike.
49
The Policy can also be extended to cover PTD on payment of extra
premium;
Permanent Total Disability Which, in the case of Milch Cattle
results in permanent and total incapacity to conceive or yield milk.
PTD which in the case of Stud Bulls results in permanent and total
incapacity for breeding purpose.
In case of Bullocks, Calves / Heifers and castrated male Buffaloes
results in permanent and total incapacity for the purpose of use
mentioned in the proposal form.
Identification Of Animal
All insured animals should be suitably identified by natural
Identification marks and color should be clearly noted in the proposal
form and veterinarian’s Report.
Ear tags made of suitable material are applied to the ear of the
animals and the code number is entered into the veterinary Health
Certificate.
Photographs of animals may be insisted in case of high value animal.
Claims Procedure
In the event of death of an animal, immediate intimation should be
sent to the Insurers and the following requirements should be furnished.
Duly completed claim form.
Death Certificate obtained from qualified Veterinarian on
Company’s form.
Postmortem examination report if required by the Company.
50
Ear Tag applied to the animal should be surrendered. The condition
of ‘No Tag- No Claim’ will be applied if the tag is not surrendered.
Claim Procedure for PTD Claim
A certificate from the qualified Veterinarian to be obtained.
The animal will be inspected by the company’s veterinary Officer
also.
Complete chart of treatment, medicines used, receipt, etc., should
be submitted.
Admissibility of claim will be considered after two months of
veterinary Doctor / Company Doctor’s report.
The indemnity is limited to 75 % of sum Insured.
Major Exclusion
A) Common Exclusions:
Malicious or willful injury or neglect, overloading, unskillful
treatment or use of animal for purpose other than stated in the policy
without the consent of the company in writing.
Accidents occurring and /or Disease contracted prior to
commencement of risk.
Intentional slaughter of the animal except in cases where
destruction is necessary to terminate incurable suffering on humane
consideration on the basis of certificate issued by qualified veterinarian or
in cases where destruction is resorted to by the order of lawfully
constituted authority.
Theft and clandestine sale of the insured animal.
51
War, 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 consequences thereof or attempt
threat.
Any accident, loss, destruction, damage or legal liability directly or
indirectly caused by or contributed to by or arising from nuclear weapons.
Consequential loss of whatsoever nature.
Transport by air and sea.
Any non-scheme claim arising due to diseases contracted within 15
days from the date of risk are not covered.
B) Specific Exclusions: Pleuropneumonia in respect of Cattle in Lakhimpur and Sibasagar
Districts and newly carved out districts out of these two districts of
Assam.
All the claims received without ear tag.
Documents to Effect Insurance Coverage Proposal Form
Veterinary Health Certificate from a qualified Veterinarian giving
the age, identification mark, health, and market value of the animal in the
prescribed format.
52
CHAPTER 5
DATA ANALYSIS & INTERPRETATIONS
Table 5.1
Awareness of livestock Insurance
Yes No90% 10%
Figure 5.1
Interpretation
From table 5.1 investigators interprets that 90 % of respondents are aware about livestock insurance where as 10% of the respondents are not aware.
53
YES NO0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Table 5.2
Number of insurance policy taken
Yes No70% 30%
Figure 5.2
Interpretation
From table 5.2investigators interprets that 70 % of respondents have taken livestock insurance policy, where as 30% of the respondents have not taken livestock insurance policy.
54
YES NO0%
10%
20%
30%
40%
50%
60%
70%
80%
Table 5.3
Number of livestock owned
1 14%2 22%3 42%More than 3 22%
Figure 5.3
Interpretation
From table 5.3 investigators interprets that 14 % of respondents have 1 livestock, 22% have 2 livestock, 42% have 3 livestock, and 22% have more than 3 livestock.
55
123more than 3
Table 5.4
Claim Settlement Process Easy or Convenient
YES NO57% 43%
Figure5.4
INTERPRETATION
From table 5.4investigators interprets that 57% of respondents found that the claim settlement process is easy & convenient where as 43% of respondents reported that the claim settlement is difficult.
56
yes no0%
10%
20%
30%
40%
50%
60%
Table 5.5
Free medical checkup facility under the policy provided by the insurance company
Yes No
64% 36%
Figure 5.5
Interpretation
From table 5.5investigators interprets that 64% of respondents get free medical checkup facility under the policy from their insurance company where as 36% of respondents do not get any medical facility.
57
YES NO0%
10%
20%
30%
40%
50%
60%
70%
Table 5.6
Awareness about the loan facility given for developing cattle shed by the insurance company
Yes No
72% 28%
Figure 5.6
Interpretation
From table 5.6investigators interprets that 72% of respondents are aware about the loan facility, where as 28% of respondents are not aware.
58
YES NO0%
10%
20%
30%
40%
50%
60%
70%
80%
Table 5.7
Awareness of benefits covered under livestock insurance policy
Yes No
85% 15%
Figure 5.7
Interpretation
From table 5.7investigators interprets that 85% of respondents reported that their insurance company create awareness and benefits covered under livestock insurance policy, where as 15% of respondents are not aware.
59
YES NO0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Table 5.8
Premium plan
Expensive Reasonable
42% 64%
Figure 5.8
Interpretation
From table 5.8investigators interprets that 42% of respondents find the premium rates expensive while 64% of the respondents find it reasonable.
60
EXPENSIVE REASONABLE0%
10%
20%
30%
40%
50%
60%
70%
Table 5.9
Types of risk coverage
Fire / Lightning 7%Flood/cyclone 35%Disease contracted 57%Occurrence of death during the policy
14%
Figure 5.9
Interpretation
From table 5.9investigators interprets that over 57% of the respondents cover the risk of disease contracted, 35%of the respondents cover the risk of flood and cyclone, 14%of the respondents cover the risk due to occurrence of death during the policy and 7%of the respondents cover the risk of fire & lightning.
61
Fire / LightningFlood/cycloneDisease contracted Occurance of death during the policy
CHAPTER 6
FINDINGS, SUGGESTION & CONCLUSION
6.1 FINDINGS
Livestock refers to domesticated animals that may be kept or raised in pen, houses, pastures or farms as a part of an agriculture or farming operations.
According to the survey conducted 90% of the respondents from diva to Kalyan are aware about the Livestock Insurance where as 10% of the respondents are not aware.
From the findings conducted 70% of the respondents from Dombivli to Kalyan locality have taken livestock insurance policy. While 30% of the respondents have not taken livestock insurance policy. As these respondents are uneducated and lack proper access to knowledge.
Most of the respondents from Dombivli to Kalyan locality have their own cattle business for diary and farming purposes. None of these deal with other kinds of livestock.
57% of the respondents found that the claim settlement process is easy and convenient. While 43% of the respondents reported that the claim settlement process is difficult because of they are not familiar with all the documentary requirements.
64% of the respondents get free medical checkup facilities under their policy from their insurance company where as 36% of the respondents do not get any medical facility.
72% of the respondents are aware about the loan facility where as 28% of the respondents are not aware.
62
85% of the respondents reported that their livestock insurance company creates awareness of its benefits covered where as 15% of them reported that their insurance company do not create any awareness.
42% of the respondents find the premium rates expensive while 64% of the respondents find it reasonable.
From the above findings I found that sales of livestock insurance are still in the growing stage. There is awareness amongst the people. The insurance companies are taking many efforts to build awareness in Kalyan & dombivli locality.
6.2 LIMITATIONS OF STUDY
Analysis is based from data collected from Dombivali & kalyan area
only.
Study is subject to limitation of time i.e. 3 months.
The data is collected only from 30 respondents
63
6.3 SUGGESSTION
I suggest the following step to be taken by Insurance company to improve
the sales & services of Livestock Insurance Business………..
The Insurance Company must educate the owners of livestock
about the risks involved in livestock business.
The insurance company should conduct formal awareness camps
Livestock owner personally to make them understand the necessity
of Livestock insurance.
The insurance company should conduct medical awareness camps
to disseminate information about the various ailments affecting the
productivity of livestock. The camp must enable the owners to take
the necessity precautions to avoid illness and improve the health of
the livestock.
The insurance company must conduct the camps in lucid
vernacular language.
They should also conduct seminars and work shop on business
expansion activities so that the livestock owner learn to diversify
beyond cattle.
They insurance company must also collaborate with banks to
provide easy credit finance schemes for the livestock owner.
64
They should create awareness through various Medias like T.V
distributing circular & various means.
They should give best training to their staff and agents as they are
the one who reach out to the customers.
6.4 CONCLUSION
The success of rural financial development tools in livestock related
project components in preconditioned by:
The existence of an enabling financial policy and institutional framework,
as well as favorable terms of trade for livestock and livestock products.
The targeting of households based on their capacity to utilize the financial
services to raise the productivity of their livestock, ultimately enabling
them to repay the loans and
Full beneficiary participation,, together with a thorough understanding of
the needs , constraints , goals priorities, production system and
environment of the livestock communities.
Effective, sustainable and accessible rural financial services are critical
to the long-term development of livestock production. Financial services
Enables livestock keepers to expand, diversify and increase their
household food and income security. Therefore, appropriate rural
financial institution can have a significant effect on rural poverty
alleviation. However, IFAD must face the major challenge of increasing
the sustainability of such institution, without which they can have no
long-term impact on livestock development.
65
ANNEXURE 1
QUESTIONNAIRE
(For Customers)
Note: 1. Tick in the appropriate box
2. Disclosure of the name is optional.
3. The information given shall be used for the purpose of
Research and not for any other venture
Name: - Age:-
Sex: - Male Female
Educational Qualification:-
1. Are you aware about Livestock Insurance?
Yes NO
2. Have you taken Livestock Insurance Policy?
YES NO
`3. Which Type of business you are doing?
66
4. How many livestock do you owning?
5. Is the Claim settlement Process easy and convenient?
YES NO
6. Does the Insurance Company provide free medical check-up facility, under the policy?
YES NO
7. Are you aware about the loan facility given by the Insurance Company for Developing Cattle-Shed?
YES NO
8. Have you availed the benefit of Loan facility?
YES NO
9. Does the Company create awareness of the benefits covered under Livestock Insurance Policy?
YES NO
10. Which type of risk you have covered?
Fire/ Lightning
Flood / Cyclone
Disease contracted
Occurrence of death during the policy
67
BIBLIOGRAPHY & WEBLIOGRRAPHY
BIBLIOGRAPHY
BOOK
The Economics of Live Stock Disease Insurance:
By Stephen R koontz, Dana L hoag
Livestock and aquaculture insurance in developing countries
By R.A.J.ROBORTS
Economics times
WEBLIOGRRAPHY
www.newindiaassurance.co.in
www.wekipedia.com
www.insuremagic.com
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