Cattle farmers spend a lot of their hard-earned money on the purchase and management of cattle. Since the livelihood of these farmers depends so much on cattle rearing, the losses incurred due to injuries or the death of animals can put them in trouble.
Cattle insurance is an insurance policy that covers losses against cattle. It protects cattle farmers from the financial losses incurred due to the animal’s loss of life, injury and diseases. Apart from cattle insurance, various insurance policies are also available for other livestock such as sheep, goats, donkeys and poultry.
Cattle insurance policies are designed to cover animals like cows, buffaloes, calves and bullocks. They provide several benefits to protect the cattle farmer’s investment and the animals. So, it is important to get cattle insurance policies for comprehensive coverage against livestock losses.
Here are a few insights into the important aspects of cattle insurance coverage.
The policy coverage:
Cattle insurance policies cover the persons who own cattle of either sex. All animals are insured for their current market price.
Policy coverage & eligibility criteria are subject to the terms and conditions of the insurance company.
The major risks which are covered under the cattle insurance policies are death and permanent total disablement (PTD) of animals due to the reasons that can include (but are not limited to):
● Natural calamities: flood, drought, epidemics, fire, lightning, storm, famine, inundation, cyclone, tornado, typhoon, tempest, hurricane, earthquake, landslides.
● Man-made disasters: accidents, riot, strike, civil commotion, explosion/Implosion, missile testing operations, surgical operations, aircraft damage, electrocution.
● Extreme life-threatening situations like drowning, snake bites, strangulation, poisoning and disease contracted during the policy period.
General eligibility criteria:
Below mentioned are some of the important factors that have to be kept in mind before applying for insurance:
● The coverage is provided for both scheme and non-scheme animals. Scheme animals are subsidized under government projects like the National Livestock Development Board (NLDB) and State Livestock Development Board (SLDB). Non-scheme animals refer to the cattle owned by/belonging to private owners, cooperative dairies, dairy farms, corporate diaries etc.
● The cattle must be fully vaccinated and nourished. Intentional carelessness can result in policy rejection.
● The sum insured can depend on the purchase value, or the market price of the animal, which can be a price agreed jointly by the beneficiary, authorized veterinary doctor and Insurer. Factors such as the type of breed, location etc., can also influence the sum.
● Insured animals should carry the identification applied by the company (like ear tag) at all times. In case the identification mark is lost, immediate notice of the same should be communicated to the company. You can seek fixing identification of the animal at Insured’s cost.
The insurance coverages claimed for cattle is non-payable under certain circumstances. The policy does not cover the death of cattle related to those circumstances.
Major exclusions generally added in policy coverages are:
● Willful injury or neglect, overloading, malicious damage, treatment under unskilled practitioners, use of animals for purposes other than stated in the policy
● Injury, death or damage arising due to transport by air, sea or any mode
● Terrorism, war, invasion, the act of foreign enemies, radioactivity, nuclear explosions
● Theft or clandestine sale
● Not providing the necessary treatment when sick or not taking any initiative to prevent death
● Intentional killing and slaughtering without permission from the veterinary or government officials
● Straying of cattle or they’re missing
● Consequential losses
Documents required for the purchase of insurance:
● A proposal form that is duly filled and signed
● Medical certificates issued by the Veterinary Doctor
● Photographs of the insured cattle with clearly visible applied tags.
● If necessary, receipt of payment made while purchasing the animal and DD/Cheque along with the above-given documents.
General conditions for claim & claim procedures:
● In case of animal death/injury, the cattle owner should provide immediate intimation to the company. Insurance companies require the customer to approach an authorized veterinary doctor and the authorized person of the company to certify the death/injury of the insured animal.
● Get the death certificate or the certificate of disability from the veterinarian.
● Claims shall be assessed based on relevant documents submitted to the company. Along with the claim form, Death cum PM Report / PTD certificate issued by the veterinary surgeon, photographs of the dead/disabled animal with an ear tag, ear tags and death certificate will be essential for processing a claim.