In India, where 65% population stays in the rural areas, the number of farmers and ranchers is huge and most of them own cattle or livestock that becomes an important commodity in their life. Often they encounter unforeseen unfortunate incidents regarding their livestock that poses a serious financial burden upon their shoulder. In this scenario, Cattle Insurance becomes a messiah for them, protecting them from such financial loss.
Even if the farmers or ranchers always try to protect their cattle by vaccinating them, providing them the best treatment, offering hygienic conditions of stabling but still after that, sometimes they cannot escape the unfortunate death or disablements or accidents of their cattle. Cattle insurance here offers financial help protecting from such loss. So if your cattle are your livelihood, you must be protected adequately by cattle insurance.
What are the key Features/Benefits of Cattle Insurance?
There are multiple benefits that you can avail of under this insurance policy. Let’s look at its key features below.
Coverage for indigenous animals – This policy offers financial protection for different herd animals such as milch cows, milch buffaloes, stud bulls, bullocks, calves, sheep, and goats, and so on.
Accidental coverage – If your cattle face any accident and you have to face some financial loss due to that, the insurer takes care of your expenses.
Death coverage – If your livestock meets death due to accidents, unpredictable incidents, or by diseases, surgical operations, this policy takes care of the financial loss. The terms and conditions of this animal mortality coverage may vary from company to company.
Disability coverage – In case of permanent total disablement of your cattle, you can claim reimbursement for your financial expenses.
Protection to your herd – If you are a herd owner, this insurance policy offers you insurance for a specific number of cattle. For example, for 200 dairy cows or for 300 pigs.
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, civil commotion risk.
Safeguard from liability – As the cattle are unpredictable, this policy saves you against claims of damage against you or your property.
Protection to your assets – This Cattle Insurance is very policy that not only saves you from a huge financial burden but also it provides strong protection to your assets, the cattle.
Adjustable according to your convenience – Usually, the numbers of cattle increase in the season of birth and can decrease at any time due to different reasons. So, in a way, if the number of cattle fluctuates throughout the year, the policy can be adjusted according to that and so the premium amount. In this case, your insurance agent can help you out in determining the coverage protection based on changes in herd value during that financial year.
Eligibility Criteria of Cattle Insurance
Cattle insurance policy is specially designed for those people who have
- 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 National Livestock Development Board (NLDB) and State Livestock Development Board (SLDB).
It has to be kept in mind that at the time of buying this cattle insurance policy, the cattle should be in sound health, must not be injured, and must not be suffering from any disease. The policy seeker must get a certificate of the health condition of the cattle from a registered veterinary practitioner.
Non-scheme animals refer to all types of cattle owned by / belonging to an individual or corporate, dairy farms, cooperative/ corporate dairy funded by various financial institutions, etc. Animals under the following age groups are eligible for the cattle insurance policy.
|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 Are The Different types of Cattle Insurance?
There are different types of Cattle Insurance that are available with the various insurance companies in India. Let’s find out the types and their details in brief below.
Hog and Pig Insurance
Most of the insurance companies that offer cattle insurance, usually also cover pigs, hogs, and swine raised in a restricted area. These packages cover specific causes of death only that may vary from insurer to insurer. For example, you may opt for the protections against barn fires, specific weather events, accidental drowning, falling objects, and so on.
Sheep and Goat Insurance
Usually, all the companies that provide Cattle Insurance, cover sheep and goats too. Generally, this provides financial security against death or total permanent disability due to accidents, weather events, and some more but it usually excludes the death by sickness or disease. If you own any precious or high-valued sheep or goats and if you want to insure in individually, it would be advisable to go for a specialized animal mortality insurance policy.
Chicken Insurance and Other Coverage for Poultry
The poultry insurance policy usually comes under a Cattle Insurance policy that is specially designed to safeguard you and your poultry business from the risks that your business may encounter. Whether you deal with chickens, turkeys, or even emus, there is an insurance option that can protect your investment.
The general standard policy covers the expenses raised due to physical damage to your assets. Usually, sickness and diseases are not covered under this policy but some companies provide extensions or additional benefits to strengthen the financial security such as loss of income due to interruption of egg production, loss of income due to loss of meat birds, and some more.
What is Covered Under Cattle Insurance?
The Cattle Insurance policy covers a number of death causes and it may be divided into two kinds of coverage: Comprehensive or “Full Mortality” Coverage and Limited Coverage. The general inclusions under this insurance policy are as follows.
Natural accidents – If your cattle meet a death due to natural calamities like flood, famine, earthquake, etc. the financial loss will be compensated by the insurer.
Unpredictable circumstances – If your cattle face any mortal injury due to any unforeseen accident such as drowning, shooting, loading and unloading, falling objects, fire, smoke, electrocution, explosions, and so on, a cattle insurance policy takes care of those expenses.
Diseases – You can also avail of financial protection if your cattle suffer from some diseases. But the type of disease may vary from company to company.
Surgical Operations – If your cattle need any surgical operation, that medical expenses are also covered by the insurer under this policy.
Terrorist Act – This policy also covers the financial loss due to terrorist activities on certain grounds.
Strike, Riot, and Civil Commotion risk – The cattle insurance policy covers the financial loss raised due to crimes, civil unrest like theft, vandalism, and some more.
Animal Attacks – If your livestock faces any mortal injury due to animal attacks, this insurance policy will cover that financial loss too.
Collision or other death while transporting – This policy also covers the expenses if your cattle face death due to collision or other death while transporting, on certain grounds.
What Are The General Exclusions of Cattle Insurance?
The general exclusions of the cattle insurance policy are as follows.
Malicious damage, and if death occurs due to willful injury or neglect, overloading, unskillful treatment, or animal’s use (without Company’s consent) for purposes beyond the policy’s guidelines.
If an accident occurs and/or disease is contracted prior to commencement of risk.
If damages happen due to war, invasion, an act of a foreign enemy, nuclear exposure, secret sales, or a missing case of an insured animal.
Theft of the insured animal.
Intentional killing, however, killing under legal and/or veterinarian’s supervision is an exception.
Animal’s demise within 15 days of policy’s inception.
‘No tag-No claim’ provision is applicable to the policy.
If any damages happen during air or sea transport and transit beyond certain kilometres mentioned in the Policy Wordings.
Names of The Various Companies That Provide Cattle Insurance
There are a different number of companies that provide Cattle Insurance policy and they are as follows.
SBI General Insurance
Reliance General Insurance
Future Generali Total Insurance Solutions
TATA AIG Insurance
The Oriental Insurance Company Limited.
How Can I Claim Under Cattle Insurance?
Follow the below-mentioned steps to avail a hassle-free, easy claim settlement process for this insurance policy.
The owner should intimidate the insurer or the agent of the company immediately after the death or injury of the insured cattle, at least within 24 hours.
Keep with you the death certificate or the disability certificate from a legal veterinary doctor.
The beneficiary must submit the duly filled claim form along with the required documents.
A surveyor will be appointed on behalf of the company to visit the site, investigate and verify the submitted details.
Remember, whether your claim will be rejected or approved depends on the report of the surveyor. So, cooperate with him and with the company.
Keep all the necessary documents prepared and do not provide any false information.
If your claim is found to be genuine, it will be approved and the beneficiary will receive the amount, or else it will be rejected.
Documents That Are Required For The Claim Settlement Process
The required documents for the smooth and successful claim settlement process are as follow.
Medical Certificate from 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
Frequently Asked Questions
Most frequent questions and answers about Cattle Insurance FAQs
1. How is the sum assured calculated under this policy?
Ans: At first, the cattle will be identified and then it will be insured for its current market price. The market price of the animal to be insured will be determined and agreed upon jointly by the policy seeker and the authorized veterinary practitioner.
2. Do I need to vaccinate my cattle before buying this policy?
Ans: Yes, you need to vaccinate your cattle and they must be fed with nutritious food. They must be in sound health before buying this policy. For that, you also need a medical certificate from a registered veterinary practitioner.
3. What is the premium amount for the insurance?
Ans: The premium amount totally depends upon the insurance company, their terms, and conditions, and the cattle. So, the amount may vary from insurer to insurer.
4. What is the policy period for the cattle insurance policy?
Ans: The minimum policy period is of 1 year and the maximum can be of 3 years.
5. Can the cattle insurance policy be transferred to the new owner?
Ans: Yes, it can be transferred as this insurance is valid on the sale of the cattle.
6. Does this policy cover the expenses of the removal of the dead bodies of the cattle?
Ans: This facility is not available with all the companies. However, some companies have this additional benefit, where they will bear the expenses of removing the animal carcass if it dies in a covered loss.
7. Can I cancel my policy?
Ans: Yes, you may cancel your policy by sending 15 days’ notice in writing by Regd. A.D. to you and at your last known address. To know in detail, refer to your Policy Wordings.