Insurance scheme for cattle in the offing

The agriculture ministry is formulating a new cattle insurance scheme to be implemented in the current Plan itself.

The ministry has already started a dialogue with public sector insurance companies on this issue. The matter was also discussed with state agriculture and animal husbandry ministers in a meeting held here, early this month

Promotion of livestock insurance is one of the promises made by the UPA in its common minimum programme. The new scheme will replace the pilot cattle insurance scheme tried out in the 9th Plan.

This scheme was not too successful and was disallowed by the Planning Commission to be continued in the 10th Plan. Against the target of covering about 50,000 animals under that scheme, only 10,000 could actually be insured.

At present, the general insurance companies are providing insurance cover to the animals supplied to the below poverty line (BPL) households under the rural development and poverty alleviation schemes.

Concessional premium of around 2.25 per cent of the assessed market value of the animal is being charged by them for a one-year policy. Discounts are offered on policies of three years' or five years' duration.

According to Krishi Bhawan sources, the new scheme will focus on cross-bred and high milk producing cattle and buffaloes to begin with. But, ultimately, it will cover all types of livestock, including other bovines, sheep, goats and pigs.

The new scheme will be applicable to all categories of cattle owners though preference will be given to the landless labour and the small and marginal farmers.

However, the crucial issue of the quantum of subsidy on the premium and involvement of the states with funding support is yet to be decided.

But the premium is sought to be kept low to ensure wider participation of small and marginal livestock keepers.

The agriculture ministry is trying to negotiate with the insurance companies for a premium rate of around 2.25 per cent of the market value of the animal as applicable to animals supplied under the poverty-alleviation programmes.

The ministry may, however, agree to policies of longer duration, like three to five years, instead of one year. This is because the insurance companies find it difficult to collect premium from farmers every year.

The proposed scheme also stipulates involvement of unemployed agriculture and veterinary graduates in operating this programme.

Besides acting as insurance agents, they can identify the animals to be provided insurance, assess their market value and carry out tagging of the insured animals. They can also verify the claims.

The ministry also wants the insurance companies to offer simple procedures for obtaining insurance cover as well as for claim settlement.