Cattle are considered one of the rural communitie’s most valuable assets. Several small, medium, and marginal farmers earn a large part of their income from cattle rearing. Cattle insurance provides comprehensive coverage against the loss of cattle because farmers’ livelihoods depend on them. Cattle insurance is another endeavor of the Government of India to protect the country’s agro-based economy.
What is Cattle Insurance?
Cattle insurance is a type of insurance policy that helps protect farmers against financial loss due to events such as death, illness, or theft of their cattle. The policy typically covers a variety of risks, including mortality (death) due to disease or accidents, theft, and reproductive failure. Coverage may also be available for other livestock, such as sheep or horses. Premiums for cattle insurance are generally based on the value of the insured animals and the level of coverage selected.
What are the Key Features of Cattle Insurance?
There are multiple benefits available under the cattle insurance policy. Let’s look at the key features below.
- Accidental Coverage: if your cattle face any accident and you face financial loss, then the insurance company takes care of your expenses.
- Death Coverage: If your cattle meets death due to accidents, unpredictable incidents, or by diseases, or surgical operations, a cattle insurance policy takes care of the financial loss. The terms and conditions of this animal mortality coverage may vary from insurer to insurer.
- Disability Coverage: In case of permanent disablement of your cattle, you can claim reimbursement for your financial expenses.
- Protection of your herd – This insurance policy offers Coverage for a specific number of cattle if you own a herd, for example, 50 dairy cows.
- Protection against falling prices: If you are a livestock producer and seller and if the market value of the cattle falls below a specific amount, this insurance policy protects you from that financial loss.
- Security to your cattle: This policy provides financial security in case of strike, riot, or civil commotion risk.
- Safeguard from liability: As the cattle are unpredictable, this policy saves you against damage claims against you or your property.
- Protection for your assets: This Cattle Insurance policy saves you from a huge financial burden and provides strong protection for your cattle.
Eligibility Criteria of Cattle Insurance
An insurance policy for cattle is specifically designed for those who own cattle
- Cows, bullocks, or buffaloes of either sex.
- High-valued and cross-breed cattle are owned by private owners, military dairy farms, cooperative dairies, and corporate dairies.
- This policy covers both schemed and non-schemed animals. Schemed animals are those cattle that are subsidized under The National Livestock Development Board (NLDB) and State Livestock Development Board (SLDB).
While purchasing insurance, policy seekers should ensure that the cattle are not injured or sick at the time of purchase. A veterinarian must certify the health condition. Insurance coverage is available to animals under the following age groups.
| Animal Type | Animal Age |
| Milch Cows | 2 years/ or age at 1st calving – 10 years |
| Milch Buffaloes | 3 years/ or age at 1st calving – 12 years |
| Stud Bulls | 3 years – 8 years |
| Bullocks and male Buffaloes | 3 years – 12 years |
| Female Calves or Heifers | From the age of 4 months – 2 years or 1st calving age whichever is lower |
| Milch Cow’s offspring | From the age of 4 months – 2 years or 1st calving age whichever is lower |
| Milch buffaloes’ offspring | Up to 3 years or 1st calving age, whichever is lower |
What is Covered under Cattle Insurance?
Cattle insurance typically covers a variety of risks that farmers may face, such as:
- Mortality: Death of an animal due to accident, disease, or theft. The policy can provide financial compensation for the loss of the animal and can also help with the costs of an investigation into the cause of death.
- Livestock liability: Legal liability that arises from owning or caring for cattle. This can include liability for accidents or injuries caused by the cattle, as well as for any damage the cattle cause to other people’s property.
- Cattle theft: Loss of cattle due to theft. This coverage typically covers both the cost of the animal as well as the costs associated with recovering stolen cattle.
- Breeding Livestock: Loss of breeding cattle due to death or disease, and also includes loss of breeding income and additional expenses incurred to get replacement breeding stock.
- Transit: Protection of livestock during transportation, whether by road, rail or air, regardless of the means of conveyance, and includes the liability of the owner of the livestock for loss or damage to the livestock caused by the common carrier.
- Business Interruption: Loss of income as a result of an event covered under the policy, such as a disease outbreak or extreme weather event that affects the herd.
What is Not Covered under Cattle Insurance?
Cattle insurance policies typically do not cover certain types of losses or events. Some examples of exclusions that may be found in a cattle insurance policy include:
- Theft of the insured animals
- Animal’s demise within 15 days of the insurance policy’s inception
- No-tag no claim provision is applicable of the policy
- If damage due to war
- Slaughtering without permission from the veterinary or government official
- Malicious or willful injury or neglect, overloading, unskillful treatment, or use of animal for a purpose other than stated in the policy without the consent of the company in writing.
- Disability or death due to transport by air or sea
It is important to read the policy carefully and understand what is and what is not covered, as well as the conditions for making a claim. It is also important to consider whether the policy limits are enough to cover the total value of the herd.
Claim Process for Cattle Insurance.
The claim process for cattle insurance typically involves the following steps:
- Notify the insurance company of the loss as soon as possible. This can typically be done by phone or online.
- Provide documentation of the loss, such as veterinarian reports, police reports, and photographs of the deceased or injured animals.
- The insurance company will then send an adjuster to assess the loss and determine the payout amount.
- Once the adjuster has completed their assessment and the payout amount has been determined, the insurance company will issue payment for the claim.
- In case of disputes over the claim, the policyholder can contact the insurance company’s customer service or ombudsman for resolution.
It is important to note that the specific process and requirements may vary depending on the insurance company and the policy.
Documents that are required for the Claim Settlement Process
The required documents for the smooth and successful claim settlement process are as follow.
- Proposal Form
- Medical Certificate from a registered Veterinary doctor
- Minimum 4 Photographs of the insured animals of postcard size or soft copy, to be provided by the proposer where the applied tag can be clearly identified.
- Duly filled claim form
- Receipt of payment while purchasing the animal
- The identification tag of the insured animal
- DD/Cheque along with the above-given documents