Cattle are regarded as one of the most valuable assets in a rural community’s belongings. Marginal, small, and medium-sized farmers get a significant percentage of their revenue from breeding cattle. Because cattle are crucial to farmers’ livelihoods, it is critical to get livestock insurance to provide full coverage against animal loss. 

In addition to crop insurance, the government of India is attempting to safeguard the country’s agro-based economy with cattle insurance. As we advance in this article, we will learn more about cattle insurance and what is premium rate of animal insurance.

What Is Cattle Insurance?

Farmers in rural India are protected from financial loss due to the death of their animals via the purchase of livestock insurance policies. Cattle are expensive, and the loss of a herd may drive farmers into a debt-trap cycle. Farmers will get total protection against the loss of their animals if they purchase cow insurance.

Types Of Cattle Insurance

This policy covers two categories of hazards: property damage and liability damage.

  • Death of cattle: Cattle deaths are covered under this policy, including those caused by accident or injury and sickness caused by surgical infection.
  • Permanent disability: This kind of insurance protects against permanent and total disability danger.

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Things Covered In Cattle Insurance

Additionally, cattle insurance provides coverage for situations such as death or disability resulting from fire, traffic accidents, drowning or electrocution, and poisoning or snake bites. They are as follows:

  • Natural disasters such as hurricanes and earthquakes result in the death of many people.
  • Disease, infection, or calving during surgical procedures may result in death.
  • For dairy cows, this is a permanent handicap. This term relates to the inability to conceive and produce milk. This term alludes to a bull’s inability to reproduce.

How Does Cattle Insurance Work?

Regarding livestock management in rural areas, cattle insurance is a critical component. Let us have a look at how cattle insurance works and what is the premium rate of animal insurance is:

  • To ascertain the price of the cattle and the identity of the livestock, the first stage must be completed before deciding on the amount insured. This evaluation is carried out in collaboration between the recipient and an authorised veterinary doctor.
  • According to the policy, the beneficiary must pay the premium amount monthly or yearly.
  • In the event of the cattle’s death or infirmity, the beneficiary notifies the bank as soon as possible of the unfortunate event.
  • To be covered by insurance, you must submit all necessary documentation to the business.
  • A representative from the insurance company will verify all of the paperwork and finalise the claim.

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Criteria Of Eligibility

Cattle Insurance Policy provides coverage for those who have:

  • Cows, bullocks, and buffaloes of any size are acceptable.
  • A variety of mixed and exotic cattle are held by private individuals and military dairy farms, cooperative dairy cooperatives, and corporate dairy corporations.

This guideline applies to both schemed and non-scheduled animals alike. Schemed animals are cattle that have received subsidies from the National Livestock Development Board (NLDB) and the State Livestock Development Board (SLDB) (SLDB).

Procedure For Filing Cattle Insurance

When it comes to processing livestock insurance claims, the following processes must be followed:

  • The owner should notify the insurer of the death or injury as soon as possible by calling the provider’s toll-free customer service line, which is available 24 hours a day, seven days a week.
  • Take the death certificate or the certificate of disability from a veterinarian to prove that the animal died.
  • In addition to the death or disability certificate, the beneficiary must submit a claim form that has been adequately completed.
  • An authorised representative from the insurance company will visit the location and check the information that has been supplied.
  • If the claim is legitimate, the money is given to the recipient; otherwise, the claim is denied.

Important Aspects To Consider

This coverage, also known as livestock insurance, is accessible to practically all cow owners in rural India and is relatively inexpensive. Nonetheless, the following considerations must be taken into consideration when purchasing an insurance policy:

  • Beef cattle must be given the correct vaccinations and fed healthy feed. If it is shown that willful negligence was the cause of death or injury, the claim may be denied or reduced in value. 
  • This must be done quickly after the incident to get approval for the claim.
  • It is essential to use a skilled and registered veterinary practitioner; otherwise, the claim may be denied.