“A STUDY OF AWARENESS OF LIVESTOCK INSURANCE

AMONG THE PEOPLES OF DOMBIVLI (w).”

A Project Submitted to University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Banking and Insurance) Under the Faculty of Commerce

SEMESTER VI
(2020-2021)
By

MR. JAYESH PRADIP BAUSKAR.

Under the Guidance of

Mrs. TANYA J. AHUJA.

Name of the Learner

MR. JAYESH PRADIP BAUSKAR.

Name of the Guiding Teacher

Mrs. TANYA J. AHUJA.

T.Z.A.S.P.M’s

PRAGATI COLLEGE OF ARTS & COMMERCE

DOMBIVLI EAST

MAHARASHTRA 421201

(2020-2021)

1
 T.Z.A.S.P.M’s
PRAGATI COLLEGE OF ARTS & COMMERCE
DOMBIVLI (EAST)

CERTIFICATE
(2020-2021)

This is to certify that MR. JAYESH PRADIP BAUSKAR Seat No.......... Of B.com
(Banking & Insurance) Semester VI (2019-2020) has successfully completed the
project on A STUDY OF AWARENESS OF LIVE , STOCK INSURANCE
AMONG THE PEOPLE OF DOMBIIVLI(W) under the guidance of Mrs.
TANYA J. AHUJA.

Date:-

Place:-:

(Prof.Swati Pusalkar) (Mrs.Jyoti

Pohane)

Course Coordinator
principal

(Mrs. Tanya J. Ahuja)

Project Guide / Internal Examiner External

examiner

2
 DECLARATION

I the undersigned MR. JAYESH PRADIP BAUSKAR here by, declare that the work
embodied in this project work titled ‘‘A STUDY OF AWARENESS OF
LIVESTOCK INSURANCE AMONG THE PEOPLE OF DOMBIIVLI (W)’’
my own contribution to the research work carried out under the guidance of Mrs.
TANYA AHUJA is a result of my own research work and has not been previously
submitted to any other University for any other Degree to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography. I, here by further declare that all
information of this document has been obtained and presented in accordance with
academic rules and ethical conduct.

Signature of student

JAYESH PRADIP BAUSKAR

3
 ACKNOWLEDGEMENT

To List who all have helped me in Difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University Of Mumbai for giving me chance to do this
project.

I would like to thank my principal, Mrs. Jyoti Pohane for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Co-ordinator, Mrs. Swati Pusalkar for her moral support
and guidance.

I would also like to express my sincere gratitude towards my project guide Mrs. Taniya
Ahuja Whose guidance and care made the project Successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

9Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially My Parents and Peers who supported me
throughout my project

4
 EXECUTIVE SUMMARY

Livestock animals meet a variety of human needs. They are important sources of
transport, draft power, fiber, hides, fertilizer, fuel, and nutritional protein in the form
of meat, milk, eggs, and processed products, such as cheese. Livestock insurance
covers and protects your animals from the unexpected. Whether on the farm, ranch or
in transit, your animals are considered your personal property. If something were to
happen to them due to a covered loss, we’ll help cover the cost to remedy the issue.
The Importance of Livestock for the World Agriculture is one of the oldest sciences,
and one of the most important. Without a firm understanding of agriculture, all
humans would struggle to find enough food, shelter, and clothing to survive. Through
this research, we tried to emphasize the understanding of animal husbandry insurance
by referring to prepared questioners and some qualitative information about animal
husbandry insurance. In Maharashtra and found the majority of the respondents
(82.67%) considered information on insurance, agencies and insurance schemes for
livestock in AQUA as ‘most appropriate’ need in Warn a Wired Village project.

5
 INDEX

SR., NO CONTENT PAGE

NO
CHAPTER 1 INTRODUCTION 8-46

CHAPTER 2 EXECUTIVE SUMMARY 47-51

CHAPTER 3 LITERATURE REVIEW 52-54

CHAPTER 4 DATA ANALYSIS INTERPRETATION 55-67

& PRESENTATION
CHAPTER5 CONCLUSION & SUGGESTION 68-70

CHAPTER 6 BIBLIOGRAPHY & APPENDIX 71

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 CHAPTER 01 INTRODUCTION

SR.NO CONTENT PAGE NO

1.1 INTRODUCTION OF INSURANCE 8-9
1.2 DEFINATION OF INSURANCE 10
1.3 NEED OF INSURANCE 11
1.4 INTRODUCTION OF LIVESTOCK 12-13
1.5 IMPORTANCE OF LIVESTOCK 14
1.6 CONTRIBUTION OF LIVESTOCK TO PEOPLES 15-16
1.7 ROLE OF LIVESTOCK IN FARMERS ECONOMY 17
1.8 LIVESTOCK POPULLATION DATA (2019 CENSUS) 18
1.9 PRODUCTION OF LIVESTOCK IN INDIA (2017-18) 19
1.10 INDIAN LIVESTOCK AND CLIMATE CHANGE 20
1.11 INTRODUCTION OF LIVESTOCK INSURANCE 21
1.12 IMPORTANCE OF LIVESTOCK INSURANCE 22-23
1.13 ADVANTAGES OF LIVESTOCK INSURANCE 24-27
1.14 PROCEDURE OF CLAIM UNDER LIVESTOCK 28
INSURANCE SCHEME

1.15 TRANSFORMING LIVESTOCK INSURANCE IN A 29

CHANGING MARKET
1.16 INVESTMENT CREDIT AND INSURANCE 30
1.17 SITUATION IN INDIA STATES RELATED TO 31-32
LIVESTOCK INSURANCE
1.18 TYPES OF LIVESTOCK INSURANCE 33
1.18.1 CATTLE INSURANCE 33-37
1.18.2 SHEEP INSURANCE 38-40
1.18.3 POULTRY INSURANCE 41-44
1.19 SELF HELP GROUPS (SHG) MOVEMENT 45
1.20 NATIONAL DAIRY DEVLOPMEN BOARD 46

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 1.1 INTRODUCTION OF INSURANCE

Introduction In one form or another, we all own INSURANCE whether it's auto, medical,
liability, disability or life, insurance serves as an excellent risk-management and wealth
preservation tool. Having the right kind of insurance is a critical component of any good
financial plan. While most of us own insurance, many of us don't understand what it is or
how it works. In this tutorial, we'll review the basics of insurance and how it works, then take
you through the LIVESTOCK INSURANCE out there.

8
Insurance is a means of protection from financial loss. It is a form of risk management,
primarily used to hedge against the risk of a contingent or uncertain loss.

An entity which provides insurance is known as an insurer, an insurance company,

an insurance carrier or an underwriter. A person or entity who buys insurance is known as
an insured or as a policyholder. The insurance transaction involves the insured assuming a
guaranteed and known - relatively small - loss in the form of payment to the insurer in
exchange for the insurer's promise to compensate the insured in the event of a covered loss.
The loss may or may not be financial, but it must be reducible to financial terms, and usually
involves something in which the insured has an insurable interest established by ownership,
possession, or pre-existing relationship.

The insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insurer will compensate the insured. The amount of money
charged by the insurer to the policyholder for the coverage set forth in the insurance policy is
called the premium. If the insured experiences a loss which is potentially covered by the
insurance policy, the insured submits a claim to the insurer for processing by a claims
adjuster. The insurer may hedge its own risk by taking out reinsurance, whereby another
insurance company agrees to carry some of the risks, especially if the primary insurer deems
the risk too large for it to carry

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 1.2 DEFINITION OF INSURANCE

Different authors/authorities have defined the term ‘Insurance’ differently.

Ghosh and Agarwal

Insurance is a co-operative form of distributing a certain risk over a group of persons who
are exposed to it.

Mowbray and Blan Chard

Insurance is a social device for eliminating or reducing the cost to society of certain types of
risk.

Dictionary of Business and Finance

Insurance is a form of contract or agreement under which one party agrees in return for a
consideration to pay an agreed amount of money to another party to make good for a loss,
damage, or injury to something of value in which the insured has a pecuniary interest as a
result of some uncertain events.

Allen Z : Mayerson

Insurance is a device for the transfer to an insurer certain risks of economic loss that would
otherwise come to the insured.

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 1.3 NEED OF INSURANCE

 Insurance plans are beneficial to anyone looking to protect their family,

assets/property and themselves from financial risk/losses:
 Insurance plans will help you pay for medical emergencies, hospitalisation,
contraction of any illnesses and treatment, and medical care required in the future.

 The financial loss to the family due to the unfortunate death of the sole earner can be
covered by insurance plans. The family can also repay any debts like home loans or
other debts which the person insured may have incurred in his/her lifetime

 Insurance plans will help your family maintain their standard of living in case you are
not around in the future. This will help them cover the costs of running the household
through the insurance lump sum payout. The insurance money will give your family
some much-needed breathing space along with coverage for all expenditure in case of
death/accident/medical emergency of the policyholder

 Insurance plans will help in protecting the future of your child in terms of his/her
education. They will make sure that your children are financially secured while
pursuing their dreams and ambitions without any compromises, even when you are
not around

 Many insurance plans come with savings and investment schemes along with regular
coverage. These help in building wealth/savings for the future through
regular investments. You pay premiums regularly and a portion of the same goes
towards life coverage while the other portion goes towards either a savings plan or
investment plan, whichever you choose based on your future goals and needs

 Insurance helps protect your home in the event of any unforeseen calamity or damage.
Your home insurance plan will help you get coverage for damages to your home and
pay for the cost of repairs or rebuilding, whichever is needed. If you have coverage
for valuables and items inside the house, then you can purchase replacement items
with the insurance money

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 1.4 INTRODUCTION OF LIVE STOCK

Livestock contribute towards the livelihood of the poor by supporting subsistence

consumption at household level, providing with complementary cropping activities, buffering
against seasonality in income from other income generation activities and providing some
assets for insurance against un predictable demands for cash (Dorward et al. 2009). Livestock
is an integral part of the livelihood of India’s rural population. It contributes significantly to
the overall output of the country’s agricultural industry.

Farming in India depends to a large degree on the vagaries of monsoon. If the rains fail, crops
wither. Livestock plays a crucial role in mitigating that risk. It provides alternative
employment – especially for women and income opportunities. As the critical mechanism to
cope with crop failure, it helps generate assets and bolsters the financial security of rural
Indian farmers, many of whom are among the poorest people in the country. During the last
two decades, population growth, aberrant monsoon due to climate change, restrictions on
land use, deforestation, cash crop plantation by big farmers, decreased land availability, sharp
rise in land prices and industrialisation promoted through globalisation forced the farmers to
shift to intensive farming system from the traditional free-range system (Bala Ravi2004). The
intensive rearing of livestock led to higher incidences of diseases and involvement of high
feed cost due to stallfed system.

12
Decrease in green and dry fodder availability from village common land and nearby forest
areas with increased incidences of foot and mouth disease (FMD), pleuropneumonia, Peste
des petits ruminants (PPR), avian influenza and anthrax enhanced the risk in commercial
livestock production activities resulting in decline in native livestock population
(FARD2007).

Fischer and Buchenrieder, 2009 established the fact that the absence of livestock insurance
threatened the long-term livelihood of small farmers by increasing the vulnerability to acute
financial loss in the mountainous regions of Northern Vietnam. A comprehensive study by
Perry and Grace, 2009 highlighted the complex relationships among ‘livestock, livestock
disease, livestock disease control and global poverty’ and concluded that livestock diseases
affected poverty reduction. This signifies the introduction of sophisticated risk management
mechanisms for sustainable livelihood of farmers in the above scenario.

Lack of proper animal husbandry extension support with veterinary healthcare services and
risk minimisation options such as livestock insurance limited the livelihood options of farm
households adversely affecting dietary diversity, food security and income generation.
Limited availability of organic manure from the decreasing livestock population, use of dry
cattle dung as fuel for cooking due to diminishing availability of firewood, non-affordability
for use of alternate sources of energy as fuel for domestic purposes, high cost and scarcity of
inorganic fertilizers, threatened sustainable agriculture and soil health status in most of
livestock farming areas of country.

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 1.5 Importance of Livestock

While livestock contributes to the nutritional diet and food security of the people, the growth
of the sector in different states is very uneven. Accelerating growth in the Punjab, Haryana
and Gujarat regions is in stark contrast to states like Odisha, which lags behind. The
divergence is due to the policy focus of different state governments. Depending on the
incentives and infrastructure provided by the states, the sector grows or stalls.

Developing this sector in a country where 250 million people or 51% of the total employed
population works in agriculture is crucial. In a country that still faces rising population
numbers the livestock raising industry can potentially provide work for many, assure food
security and generate additional income – a cornerstone for further development and
economic growth.

Nearly 60% of rural households have livestock as an integral part of their farming system.
About 69% of women are engaged in this sector. This sector contributes 26% to agricultural
GDP. According to latest 19th Census, the livestock population stands at 512 million in India.

14
 1.6 Contribution of livestock to people

The livestock provides food and non-food items to the people.

1. Food: The livestock provides food items such as Milk, Meat and Eggs for human
consumption. India is number one milk producer in the world. It is producing about
176.34 million tones of milk in a year (2017-18). Similarly it is producing about 95.22
billions of eggs, 7.70 million tonnes of meat in a year. The value of output of
livestock sector at current prices was Rs 9,17,910 crores at current prices during
2016-17 which is about 31.25% of the value of output from agricultural and allied
sector. At constant prices the value of output from livestock was about 31.11% of the
value of the output from total agriculture and
alliedsector. During the financial year 201718, the total fish production in India is esti
mated at 12.61 Million Metric tonnes.

2. Fibre and skins: The livestock also contributes to the production of wool, hair, hides,
and pelts. Leather is the most important product which has a very high export
potential. India is producing about 41.5 million Kg of wool per annum during 2017-
18.

3. Draft: Bullocks are the back bone of Indian agriculture. Despite lot of advancements
in the use of mechanical power in Indian agricultural operations, the Indian farmer
especially in rural areas still depend upon bullocks for various agricultural operations.
The bullocks are saving a lot on fuel which is a necessary input for using mechanical
power like tractors, combine harvesters etc. Pack animals like camels, horses,
donkeys, ponies, mules etc are being extensively used to transport goods in different
parts of the country in addition to bullocks. In situations like hilly terrains mules and
ponies serve as the only alternative to transport goods. Similarly, the army has to
depend upon these animals to transport various items in high areas of high altitude.

4. Dung and other animal waste materials: Dung and other animal wastes serve as
very good farm yard manure and the value of it is worth several crores of rupees. In
addition it is also used as fuel (bio gas, dung cakes), and for construction as poor
man’s cement (dung).

15
5. Storage: Livestock are considered as 'moving banks' because of their potentiality to
dispose off during emergencies. They serve as capital and in cases of landless
agricultural labourers many time it is the only capital resource they possess. Livestock
serve as an asset and in case of emergencies they serve as guarantee for availing loans
from the local sources such as money lenders in the villages.

6. Weed control: Livestock are also used as Biological control of brush, plants and
weeds.

7. Cultural: Livestock offer security to the owners and also add to their self esteem
especially when they are owning prized animals such as pedigreed bulls, dogs and
high yielding cows/ buffaloes etc.

8. Sports / recreation: People also use the animals like cocks, rams, bulls etc for
competition and sports. Despite ban on these animal competitions the cock fights, ram
fights and bull fights (jalli kattu) are quite common during festive seasons.

9. Companion animals: Dogs are known for their faithfulness and are being used as
companions since time immemorial. When the nuclear families are increasing in
number and the old parents are forced to lead solitary life the dogs, cats are providing
the needed company to the latter thus making them lead a comfortable life.

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 1.7 ROLE OF LIVESTOCK IN FARMERS’ECONOMY

The livestock plays an important role in the economy of farmers. The farmers in India
maintain mixed farming system i.e. a combination of crop and livestock where the output of
one enterprise becomes the input of another enterprise thereby realize the resource efficiency.
The livestock serve the farmers in different ways.

1. Income: Livestock is a source of subsidiary income for many families in India

especially the resource poor who maintain few heads of animals. Cows and buffaloes
if in milk will provide regular income to the livestock farmers through sale of milk.
Animals like sheep and goat serve as sources of income during emergencies to meet
exigencies like marriages, treatment of sick persons, children education, repair of
houses etc. The animals also serve as moving banks and assets which provide
economic security to the owners.

2. Employment: A large number of people in India being less literate and unskilled
depend upon agriculture for their livelihoods. But agriculture being seasonal in nature
could provide employment for a maximum of 180 days in a year. The landless and
less land people depend upon livestock for utilizing their labour during lean
agricultural season.

3. Food: The livestock products such as milk, meat and eggs are an important source of
animal protein to the members of the livestock owners. The per capita availability of
milk is around 375 g / day; eggs is 74 / annum during 2017-18.

4. Social security: The animals offer social security to the owners in terms of their
status in the society. The families especially the landless which own animals are better
placed than those who do not. Gifting of animals during marriages is a very common
phenomenon in different parts of the country. Rearing of animals is a part of the
Indian culture. Animals are used for various socio religious functions. Cows for house
warming ceremonies; rams, bucks and chicken for sacrifice during festive
seasons; Bulls and Cows are worshipped during various religious functions. Many
owners develop attachment to their animals.

5. Draft : The bullocks are the back bone of Indian agriculture. The farmers especially
the marginal and small depend upon bullocks for ploughing, carting and transport of
both inputs and outputs.

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1.8 LIVESTOCK POPULATION (2019 LIVESTOCK CENSUS)

18
1.9 Production of livestock in India 2017-18

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 1.10 INDIAN LIVESTOCK AND CLIMATE CHANGE

Climate change poses formidable challenge to the development of livestock sector in India.
The anticipated rise in temperature between 2.3 and 4.8°C over the entire country together
with increased precipitation resulting from climate change is likely to aggravate the heat
stress in dairy animals, adversely affecting their productive and reproductive performance,
and hence reducing the total area where high yielding dairy cattle can be economically reared.
Given the vulnerability of India to rise in sea level, the impact of increased intensity of
extreme events on the livestock sector would be large and devastating for the low-income
rural areas. The predicted negative impact of climate change on Indian agriculture would also
adversely affect livestock production by aggravating the feed and fodder shortages. The
livestock sector which will be a sufferer of climate change is itself a large source of methane
emissions, an important greenhouse gas. In India, although the emission rate per animal is
much lower than the developed countries, due to vast livestock population the total annual
methane emissions are about 9–10 Tg from enteric fermentation and animal wastes.

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 1.11 INTRODUCTION OF LIVESTOCK INSURANCE

The Livestock Insurance Scheme, a centrally sponsored scheme, which was implemented on
a pilot basis during 2005-06 and 2006-07 of the 10th Five Year Plan and 2007-08 of the 11th
Five Year Plan in 100 selected districts. The scheme is being implemented on a regular basis
from 2008-09 in 100 newly selected districts of the country. Under the scheme, the crossbred
and high yielding cattle and buffaloes are being insured at maximum of their current market
price.

The premium of the insurance is subsidized to the tune of 50%. The entire cost of the subsidy
is being borne by the Central Government. The benefit of subsidy is being provided to a
maximum of 2 animals per beneficiary for a policy of maximum of three years. The scheme
is being implemented in all states except Goa through the State Livestock Development
Boards of respective states. The scheme is proposed to be extended to 100 old districts
covered during pilot period and more species of livestock including indigenous cattle, yak &
mithun.

The Livestock Insurance Scheme has been formulated with the twin objective of providing
protection mechanism to the farmers and cattle rearers against any eventual loss of their
animals due to death and to demonstrate the benefit of the insurance of livestock to the people
and popularize it with the ultimate goal of attaining qualitative improvement in livestock and
their products.

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 1.12 IMPORTANCE OF LIVESTOCK INSURANCE

While livestock contributes to the nutritional diet and food security of the people, the growth
of the sector in different states is very uneven. Accelerating growth in the Punjab, Haryana
and Gujarat regions is in stark contrast to states like Odisha, which lags behind. The
divergence is due to the policy focus of different state governments. Depending on the
incentives and infrastructure provided by the states, the sector grows or stalls. Developing
this sector in a country where 250 million people or 51% of the total employed population
works in agriculture is crucial. In a country that still faces rising population numbers the
livestockraising industry can potentially provide work for many, assure food security and
generate additional income – a cornerstone for further development and economic growth.
Nearly 60% of rural households have livestock as an integral part of their farming system.
About 69% of women are engaged in this sector. This sector contributes 26% to agricultural
GDP. According to latest 19th Census, the livestock population stands at 512 million in India.

Diseases trigger cost. The direct cost incurred is in the treatment of the animal. Additionally,
there is the loss-of profit if the animal products can no longer be offered for sale, or the cost
associated with buying products the owner normally procures from his animals. A wider cost
can be a loss of market share should buyers switch to other providers. Finally, but just as
important, buying new animals costs money. Shouldering this cost as well is very
burdensome for many farmers.

Another set of risks has to do with as shortage of fodder. The monsoon determines how much
is available in the country. If the rains fail, supplies drop at a time when farmers are most in
need. At the same time, falling production due to underfed animals makes it more challenging
to secure the revenues necessary to cover rising prices in the fodder market. In breeding
farms, there is also the risk that the production of higher yielding animals is not successful.
India still has plenty of room to increase animal productivity by switching to better breeds of
animals. If these new breeds underperform, this is a risk to the breeders

These risks become even more serious if the sector grows and changes. The growing number
of urbanites in India will mean city dwellers becoming increasingly dependent on accessing
animal products from the countryside. To meet this demand many smallholders in India will,
over time, need to develop into commercial farmers, and sell the surplus they make to the
growing cities. Transforming subsistence farming into an agricultural enterprise also means
that farmers will become more aware of the risks they face because livestock failure will be
tantamount to business failure. To protect their revenues, the coming decades will see them
looking increasingly to insurance as a means to deal with business risks. Average annual
losses calculated due to diseases like Foot & mouth diseases 74.3%, Haemorrhagic
septicaemia 19.2%, Black quarter 5.2 % and Anthrax 1.3 % in cattle during 1991-2005 time
periods.

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Insurance as the key risk transfer must adapt to the coming reality of more commercial
farming in India. A simple look at the numbers reveals how big this challenge is. In 2012,
41.8 – 62.7 million cattle could have been insured. In2009, less than 7% of the cattle and less
than 0.6% of cattle holders had insurance. The numbers illustrate the tremendous growth
needed to cover Indian farmers against livestock risks adequately.

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 1.13 ADVANTAGES OF LIVESTOCK INSURANCE

 Protection Under a Farm Policy

If you have a small to medium-sized spread, a farm policy protects your structures
and animals. Similar to homeowner's insurance, this policy covers livestock
individually or as a herd.
Your livestock is covered if they are on your insured premises, but not while they are
in transit or away from your spread.
This policy also protects other personal property, like farming equipment, hay, feed,
structures and your home. Animals like chickens or other birds aren’t considered
livestock – they’re "poultry" that must be covered separately.

 Protection From Perils

Life happens fast. It's important your livestock is covered in an serious emergency
like a fire, smoke exposure or an explosion.
Peril insurance should cover your livestock due to theft, flooding or earthquake. If
your livestock is hit by a vehicle or if they die from a collision of the vehicle that
transports them, this is also covered.

24
 Depending on circumstance, you may consider adding a "broad peril" coverage to
your policy. This additional clause insures against extreme perils like a boulder falling
on the animals, an attack from predators or even accidental shooting.

 Animal Mortality Coverage

Limited animal mortality coverage can reimburse you for livestock that dies from
injury. If you need broader coverage, full animal mortality reimburses you for animals
that die from disease or age.
Sadly, livestock die for many reasons, but this form of insurance can help you recoup
your losses. Read the policy carefully to know what circumstances apply to your
animals if they die.
If the livestock dies from a pre-existing condition or if the death is owner-caused, you
likely aren’t covered. Make sure your animals are healthy because you'll need to
prove this before you renew your animal mortality coverage.

25
 Protection Against Falling Prices

If you're a livestock producer who sells your animals as a commodity, this form of
insurance can protect you from financial losses. The policy is backed by the USDA
and pays you if the cash price index falls below a specified amount.
For farmers and ranchers who sell their lambs, cattle or swine for slaughter, your
investment is protected against serious losses.

 Stray Animals Are Covered

Animals have minds of their own. Sometimes, they stray from your farm or ranch.
This livestock insurance is usually an option. But it's essential if you're concerned
about animals escaping and being accidentally harmed or dying.

With straying coverage, the livestock's death can be covered if it has been struck by
lightning or a vehicle. It should also cover your animals if they’re shot by a
government official protecting the public from possible harm.

Even if you think your animals are safely cooped up or that your fencing is adequate,
you never know when one or more might stray away.

26
 Stay Safe From Liability

Since livestock can be unpredictable, it's essential to include some form of liability
coverage with your insurance. This protects you against claims of damage against you
or your property.

For example, if a horse kicks an employee or visitor and causes bodily injury, your
liability insurance should cover the costs. It also applies to property damage, so if an
animal damages someone's vehicle, for example, it's covered. The purpose of
livestock liability insurance is to avoid a costly lawsuit. This additional layer of
protection gives you peace of mind.

 Your Assets are Protected

Every animal you own is an investment, which is why livestock insurance is so

important. This insurance reimburses you for the current market value of any animal
you lose.

Whether its fire, flood or another catastrophe, it's important your hard-earned money
is safe so you can replace any livestock that are lost. Consider extra coverage if you
live in a high-risk area or if you're concerned about changes in livestock prices.
Always notify your insurer when you acquire new animals.

27
 1.14 PROCEDURE OF CLAIM UNDER LIVESTOCK INSURANCE
SCHEME

An animal will be insured for its current market price. The market price of the animal
to be insured will be assessed jointly by the beneficiary and the insurance company
preferably in the presence of the Veterinary Officer or the Block Development Officer
(BDO). The minimum value of animal should be assessed by taking Rs.3000 per liter
per day yield of milk or as per the price prevailing in the local market (declared by
Government) for cow and Rs.4000 per liter per day yield of milk or as prevailing in
the local market (declared by Government) for buffalo.

The market price of pack animals i.e. horses, donkey, mules, camels, ponies and
cattle/buffalo male and other livestock such as goat, sheep, pigs, rabbit, yak and
mithun are to be assessed by negotiation jointly by owner of animal and by insurance
company in the presence of veterinarians. In case of dispute, the price fixation would
be settled by the Gram Panchayator BDO.

The animal insured will have to be properly and uniquely identified at the time of
insurance claim. The ear tagging should, therefore, be full proof as far as possible.
The traditional method of ear tagging or the recent technology of fixing microchips
could be used at the time of taking the policy. The cost of fixing the identification
mark will be borne by the Insurance Companies and responsibility of its maintenance
will lie on the concerned beneficiaries. The nature and quality of tagging materials
will be mutually agreed by the beneficiaries and the Insurance Company.

The tag already available on animal may be utilized with unique identity number,
subject to the condition that it is mutually agreed by farmer and agency and there shall
not be any dispute in settlement of claims on account of utilization of existing tag.
While processing an insurance proposal, one photograph of the animal with the owner
and one photograph of the animal clearly with the ear tag visible shall be taken at the
time of processing the insurance documentation. In case of sale of the animal or
otherwise transfer of animal from one owner to other, before expiry of the insurance
policy, the authority of beneficiary for the remaining period of policy will have to be
transferred to the new owner. Only four documents would be required by insurance
companies for settling the claims viz. intimation to the insurance company, insurance
policy paper, claim form and post-mortem report. In case of claim becoming due, the
payment of insured amount should be made within 15 days positively after
submission of requisite documents. If an insurance company fails to settle the claim
within 15 days of submission of documents, the insurance company will be liable to
pay, a penalty of 12 percent compound interest per annum to.

28
1.15 TRANSFORMING LIVESTOCK INSURANCE IN A
CHANGING MARKET

Historically, until the year 2000 at least, the public sector general insurance
companies were the sole provider of livestock insurance in India. Liberalisation of the
cattle insurance market in 2003 allowed private insurers to decide premium and policy
conditions by themselves. This has paved the way for newer product offerings. More
of these by public and private companies are needed to meet the differing local needs
of farmers in the country India is a subcontinent with a wide variety of climate zones
and boundary conditions. Livestock holdings in one area depend on pasture, in others
on supplied fodder. Water constraints determine what breeds are raised. Different
breeds have varying susceptibility to diseases. The list of variation in livestock
holdings goes on.

Yet, even though there is so much difference, there are no customized product
offerings across India. Having the same product nationwide means that in some areas
the product does not offer what farmers need, while in other areas they have coverage
for risks they do not face. This not fit-for-purpose or location is one major reason why
farmers do not purchase livestock insurance. There are only 0.6 % cattle holders are
insured. Only 9% cattle insured in India. So far as the market share of cattle insurance
concerned, private sector accounts 83 %in India. Another reason farmers do not
purchase livestock insurance is distribution related. Often insurance is bundled with
credit. Credit-linked insurance policies are not always what farmers actually need
since the loan might be solely for one year, even though the farmer wants insurance
for a longer period. If the farmers want to renew their insurance policies, they may be
obliged to take out another loan even though they do not need one. These are just two
examples of how the current market does not address farmers’ needs. Offering
localised and tailored policies is one important way of convincing the vast majority of
farmers to take an interest in insurance.

The next big challenge is distribution. India is a big country. Consequently,

connecting farmers with infrastructure is difficult. This fact also hampers the
provision and administration of insurance and especially the most urgently needed
micro-insurance products.

This problem is not just confined to issuing policies. Most farmers are not yet familiar
with the concepts of livestock risk management and insurance. Providing this
information to them in a way they can understand is one element that is currently
missing. This education process has to include how proper risk-management lowers
premiums, which, in turn, acts as an incentive to minimise losses. This is extremely
important because loss ratios are high now. Lowering them will make it more
attractive for the insurance industry to offer products.

29
 1.16 INVESTMENT, CREDIT AND INSURANCE

Animal husbandry and dairying is a state subject, and bulk of the investment for their
development comes from the state governments. The central government contributes
about 10% to the total investment through central and centrally-sponsored schemes as
to supplement state governments’ resources. In absolute terms, total outlay for animal
husbandry and dairying increased over the plan periods. However, as per cent of the
total plan outlay the share of animal husbandry and dairy development declined from
1.1% during first FYP to 0.4% during VI FYP and further to 0.3% in the subsequent
FYPs. As proportion of the total outlay for the agricultural sector, the share of
livestock fell from 11.2% in II FYP to 3.6 % in IX FYP but increased to 9.3% during
XI FYP. The share of livestock in the planned investment has never been
commensurate with its contribution to GDP or Agrl.GDP.

Since IV FYP the emphasis had been on dairy development to support the Operation
Flood Programme. With the end of Operation Flood program, the allocation to dairy
development slowed down, reaching to about 30% in the XI FYP. Animal health and
veterinary services now receive about 30% of the total funds. In XI Plan, the centrally
sponsored schemes -Animal Health and Disease Control and National Project for
Livestock Development accounted for a major share of the outlay for animal
husbandry. Small ruminants, piggery, feed and fodder development, research,
education and training did not receive adequate financial support. There has been a
large gap between planned and actual expenditure in case of Animal Husbandry in
most plan periods, except during Xth FYP.

There is hardly any private sector investment in animal husbandry except some
support to Gaushalas and Gosadans. The diary sector, however, has attracted
considerable private investment in processing, value addition and marketing. The
dairy development is no longer a monopoly of the NDDB as privately owned dairy
plants account for close to half of the total milk processed in the country. Diary
processing was not a priority for lending by institutional credit agencies. In 2009,
dairy processing was included in the list of priority sector lending activities.

Credit: Financial institutions provide credit for various livestock as ‘term credit’ for
introduction of animals, construction of animal sheds, purchase of equipments etc.).
The credit is also provided for activities like establishment of milk collection centers,
bulk milk coolers, livestock product processing units, cold chain, storage and
marketing infrastructure, vehicles for transporting livestock products, retail outlets for
sale of livestock products etc. and feed and fodder development activities are also
eligible for financing.

30
 1.17 SITUATION IN INDIAN STATES RELATED TO
LIVESTOCK INSURANCE

In case of Indian states, although the situation is uneven but prospectively better.
It is elicited from the fact that in 2016.
 Karnataka decided to implement the Livestock Insurance Scheme to encourage
farmers to insure their milch cattle and buffaloes. Under the scheme, a maximum
of five cattle/buffaloes would be covered by a farmers’ family (Prabhu, 2015).

 Further, in Bihar and Orisa, Pradhan Mantri Fasal Bima Yojana has been
implemented in 2016 and these states are looking forward for the central livestock
insurance policy to get doled up (Mukherjee, 2016). Khan et al. (2013) in Central
India reported that most of the farmers were willing to get their cattle and
buffaloes insured.

 In Gujarat, cattle insurance was availed due the motivation of Village Cooperative
Society (VCS). Insurance was sold on partner-agent model and that too from a
single company with whom VCS had a close tie-up (Trivedi and Soni, 2014). The
condition of livestock insurance in the state of Punjab is better than many states as
4,53,100 animal heads in total were insured by the four subsidiary insurance
companies of General Insurance Corporation of India (GIC) namely New India
Assurance Company Ltd., Oriental Insurance Company Ltd., United India
Insurance Company Ltd. and National Insurance Company Ltd. (Mohapatra et al.,
2014).

 In Haryana and Rajasthan, the extent of livestock cover is poor and further the
renewal of insurance policies by policyholders adds to the dismay (Chand et al.,
2016). In the context of livestock insurance, the Government of Rajasthan
supports two insurance schemes Kamdhenu and Bhais Bima, which provides
insurance against death of cows and buffaloes and is similar to the livestock
insurance scheme of the Central Government. For sheep too, the Rajasthan
Government’s Avika Kavach scheme provides insurance against death and
disability of sheep as in the Sheep Insurance Scheme of the Central Government
(Choudhary and Srinivasan, 2011). The number of animals insured in different
states of the country are presented in Table 2 and 3.

 Basunathe and Tripathi (2017) conducted a study in Maharashtra and found that
majority of the respondents (82.67%) considered information on insurance,
agencies and insurance schemes for livestock in aAQUA as ‘most appropriate’
need in Warna Wired Village project. Further, Jhirwal et al. (2018) have reported
an increase in poultry enterprises but low level of knowledge among farmers.
Similarly, knowledge as a constraint was reported among dairy farmers by Minhaj

31
et al. (2019). Therefore, one aspect is knowledge enhancement and other is
information dissemination which will boost the insurance segment in livestock
sector. Kumar et al. (2018) have reported that motivation plays a central role in
adoption of insurance among farmers.

32
 1.18 TYPES OF LIVE STOCK INSURANCE

 1.18.1 CATTLE INSURANCE

Cattle insurance protects Indian rural people from financial loss incurred due
to the death of their cattle. The cost of cattle is high and their loss can force
farmers to get into a debt cycle. With cattle insurance, farmers will get
comprehensive protection against the cattle loss.

 RISK INSURED

 Death of cattle:
It covers loss of life due to accident or injury and disease occurred due to
surgical infection

Permanent Disability cover:

It covers the risk of permanent and complete disability

33
  What Cattle Insurance Covers?

Besides death or disability caused by fire, drowning, electrocution, snake bites or

poisoning, cattle insurance offers coverage for other issues as well. They include:

I. Death due to natural calamities like storms and earthquakes

II. Death due to disease, infection or calving during surgical operations

III. Permanent disability, for milch cows this refers to incapacity to conceive and yield
milk. For bulls, this refers to incapacity to breed

34
  EXCLUSIONS (what is not covered)

 Malicious or willful injury or neglect, overloading, unskillful treatment or use of

animal for purpose other than stated in the policy
 Enterotoxaemia, Sheep Pox, Goat Pox, Rinderpest, FMD, Anthrax, H.S, B.Q. if the
animal is not successfully inoculated (protected)
 Death due to any disease contracted within 15 days from the date of commencement
of the policy
 Transport by air and sea. Transport beyond 25 kilometers from the place of stabling
by rail/road and beyond 50 kilometers from the place of stabling in case of transit by
foot
 Loss or damage caused willfully or knowingly by the Insured or any person acting on
his behalf
 Normal cracking, settlement, bedding down, up heaving of land/structures, coastal or
river erosion, defective design, workmanship or use of defective material
 Theft or clandestine sale
 Partial disability of any type, whether permanent or temporary
 Accidents occurred and/or diseases contracted prior to commencement of risk
 Intentional slaughter of the animal except in cases where destruction is necessary to
terminate incurable suffering
 Any consequential loss, however arising
 Death due to Plueropneumonia

35
  CLAIM PROCEDURE OF CATTLE INSURANCE

 The owner should immediately intimate the insurer about the death/injury on the 24*7
toll free customer care number of the provider
 Get the death certificate or the certificate of disability from a veterinary practitioner
 The beneficiary should also submit the duly filled in claim form along with the
death/disability certificate
 An authorised member from the insurance company will visit the site and verify the
submitted details
 If the claim is found to be genuine, the amount is paid to the beneficiary, else it is
rejected.

36
 COMPANIE’S OFFERING CATTLE INSURANCE IN INDIA

 HDFC ERGO.

 RELIANCE GENERAL

 ICICI LOMBARD.

 TATA AIG.

 ORIENTAL INSURANCE

 SBI GENERAL.

37
 1.18.2 SHEEP AND GOAT INSURANCE

All indigenous, crossbred and exotic Sheep and Goat will be covered under this
Scheme. The policy shall provide indemnity against death of sheep and goats due to
accident Including Fire, Lightning, Flood, Cyclone, Famine, Earthquake, landslide,
Strike, Riot or diseases contracted or occurring during the period of insurance.

38
 EXCLUSIONS

 Malicious or willful injury or neglect, overloading, unskillful treatment or use of

animal for purpose other than stated in the policy without the consent of the Company
in writing.

 Accidents occurring and /or Disease contracted prior to commencement of risk.

 Intentional slaughter of the animal except in cases where destruction is necessary to

terminate incurable suffering on humane consideration on the basis of certificate
issued by qualified Veterinarian or in cases where destruction is resorted to by the
order of lawfully constituted authority.

 Theft and clandestine sale of the insured animal.

 War, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil
war, rebellion, revolution, insurrection, mutiny, tumult, military or usurped power or
any consequences thereof or attempt threat.

 ny accident, loss, destruction, damage or legal liability directly or indirectly caused by

or contributed to by or arising from nuclear weapons.

 Consequential loss of whatsoever nature.

Transport by air and sea.

 Any non-scheme claim arising due to diseases contracted within 15 days from the
date of risk are not covered.

39
 CLAIM PROCEDURE

In the event of death immediate intimation should be given to the Company and the
Insured should furnish the following documents and required information.
Duly completed claim form.

 Death certificate from a Veterinarian on Company's form.

 Post mortem examination report if required by the Company.

 Ear tag wherever applicable.

 COMPANIE’S OFFERING SHEEP AND GOAT INSURANCE

 SBI GENERAL INSURANCE

 OICL

 UIIC

 FUTURAL GENERAL INSURANCE

40
  1.18.3 POULTRY INSURANCE

Poultry farming is a volatile business in India, in which there is usually a possibility of huge
profits as well as losses. In the event of death of poultry, the farmer suffers loss of income
and disruption in the rearing program. If the loss exceeds a specified limit, then poultry
insurance compensates the farmers so that the farmer can control the loss completely. Poultry
insurance acts as a risk transfer mechanism in exchange for a small premium. The Poultry
Insurance Scheme is applicable to all types of exotic and cross-breed poultry birds in India
with poultry farms. At the time of death, 80% compensation of the value of the bird is given
according to the pricing table and 20% additional compensation is given for Gumboro disease
according to the conditions.

41
 RISK COVERED

 indemnity against the death of birds due to the accident

(including Fire, Lightning, Flood, Cyclone, Famine, Strike and Riot).

 diseases contracted or occurring during the period of insurance.

42
  EXCLUSIONS

 Malicious/ wilful injury, neglect.

 Transit by any mode of transport.
 Improper management (including overcrowding)
 Undergrowth, cannibalism, the actions of predators like preying birds and carnivorous
animals
 Theft and clandestine sale of birds.
 Intentional slaughter of the birds except in cases where destruction is necessary to
terminate incurable suffering on humane consideration on the basis of certificate issued by
a qualified veterinary surgeon or in cases where destruction is resorted to by order of
lawfully constituted authority.
 A consequential loss however caused.
 Permanent and partial disablement of any nature.
 Loss of production.
 Loss due to: (a) Fowl Pox, Infectious Bronchitis and other specifically named diseases.
These diseases are covered by the policy only if the birds are successfully inoculated
against these diseases, if preventive and curative measures are taken from time to time,
and if the necessary veterinary certificates to that effect are supplied to the Company. (b)
Malnutrition (c) Undergrowth (d) Cannibalism (e) Loss due to huddling and/or piling of
birds. (f) Avian leucosis complex (A.L.C.)
 Salmonellas covered subject to submission of a clean certificate from competent.
Authorities immediately after testing.
 War, invasion, the act of foreign enemy, hostilities (whether war be declared or not), civil
war, rebellion, revolution, insurrection mutiny, tumult, military or usurped power or any
consequences thereof or attempt thereat.
 Any accident, loss, destruction, damage or, legal liability directly or indirectly caused by
or contributed to or by or arising from nuclear weapons.

43
  CLAIM PROCEDURE

In the event of a death of birds, immediate intimation should be given to the Company and
the Insurer should be supplied with the following documents and required information:

 Duly completed claim form

 Death Certificate from a Veterinarian.
 Post mortem report if required by the Company.

COMPANIE’S OFFERING POULTRY INSURANCE

 BAJAJ ALLIANZ

 OICL

 UIIC

44
 1.19 SELF HELP GROUPS (SHG) MOVEMENT

The SHG federation as a large microfinance institution covers 97 million rural households
and 7.4 million bank credit-linked groups. It is the largest microfinance model in the world.
Different institutes as legitimate partners are increasingly recognising SHG federations.
These include the Insurance Regulatory and Development Authority of India (IRDA) micro
insurance agents, the Reserve Bank of India business facilitators and the non-financial
services delivery agents of the National Bank for Agriculture and Rural Development
(NABARD). Given the high credibility they have in local communities, the outreach across
the country and the close link between micro-insurance and microfinance, they represent a
natural match for the distribution of livestock insurance in India.

45
 1.20 National Dairy Development Board

The dairy cooperative network includes 177 milk unions in 346 districts and over 133000
village level societies with a total membership of 14 million farmers. The cooperative
provides its members with additional services such as cattle feed, artificial insemination and
veterinary care. All these risk management services also address the interests of insurers.

46
 CHP-2. RESEARCH METHODOLOGY

SR.NO CONTENT PAGE

NO

1 OBJECTIVE 48

2 SCOPE OF STUDY 49

3 SIGNIFICANS OF STUDY 50

4 LIMITATION OF STUDY 51

47
 2.1 OBJECTIVES

1. To understand the concept of livestock insurance.

2. To study the whole procedure of insuring live stock in detail.

3. To know the awareness about the concept of livestock insurance.

4. To know the claim settlement procedure of livestock insurance.

48
 2.2 SCOPE OF THE STUDY

Data collection Survey through Questionnaire

Type of data Primary and Secondary Date

Sample size 40 Responses

Sample Area Dombivli West

Research Instrument Structured Questionnaire

Research Approach Qualitative & Quantitative

49
 2.3 SIGNIFICANCE OF THE STUDY

 To understand the importance of livestock insurance.

 To understand the types of livestock insurance.

 To understand the risk of mortality of livestock.

50
 2.4 LIMITATIONS OF THE STUDY

 The study was limited because very less peoples are aware about livestock insurance.

 Some insurance companies are not providing detail information about livestock.

 There are less available resources for the project.

9

51
 CHAPTER NO. 3 REVIEW OF LITERATURE

A Singh, P Kumar, H Kumar, A Neeraj

Thousand precautions seem worthless when accidents occur. An iota of ‘risk’ can lead to
accidents which may be disastrous for an individual farmer. Majority of the rural farmers
have single livestock unit or may be two. Any uneven situation or natural calamity whether
disease outbreak, accidental fire, earthquake, cyclones, floods, etc. may lead to loss of animal
life, ultimately distressing the poor farmer whose sole source of income perishes. To manage
these inadvertent situations and safeguard their livelihood, it becomes mandatory for the
livestock farmers to ensure the safety of their livestock by insuring them. Livestock sector
plays an eminent role in India’s economy and also in the welfare of the rural population. Not
only it provide the farmers with nutritional and livelihood security but can also be sold for
earning money when there is need. Thus keeping in mind the sustainability of livestock, it is
imperative to urge farmers for livestock insurance.

OS ODUNIYI, MA ANTWI, SS TEKANA

In India, insurance market especially in agricultural sector is usually underdeveloped. The

idea of livestock insurance emerged in India before three decades, yet, it has not operated in a
significant way till date. It is well noted that livestock insurance scheme is the relevant
strategy in managing different risks related to livestock farming but very little attention has
been paid to address the livestock insurance needs of the dairy farmers. This study, therefore,
addresses the basic question that how many people and to what extent they are willing to pay
for livestock insurance and determine the main factors which influence insurance
participation of dairy farmers. The data was collected from Gorakhpur district of Uttar
Pradesh in India with a sample survey of 120 cattle and buffalo farmers. For eliciting
willingness to pay, a contingent valuation scenario was presented to dairy animal owners in
the group of five to six. A logit discrete binary regression model was used to know the factors
influencing adoption of livestock insurance. The results suggest that most of the farmers were
willing to participate in cattle and buffalo insurance. The amount of premium varies across
different breeds of dairy animals. The low level of education of many dairy farmers have
negatively influenced the decision to purchase livestock insurance. Farmers having more
experience in rearing dairy animals are more likely to be willing to pay for cattle and buffalo
insurance.

52
Harounan Kazianga (2006)

The study of the extent of consumption smoothing between 1981 and 1985 in rural Burkina
Faso. In particular, they examine the extent to which livestock, grain storage and inter-
household transfers are used to smooth consumption against income risk. The survey
coincided with a period of severe drought, the results provide direct evidence on the
effectiveness of these various insurance mechanisms when they are the most needed. They
find evidence of little consumption smoothing. In particular, there is almost no risk sharing,
and households rely almost exclusively on self-insurance in the form of adjustments to grain
stocks to smooth out consumption. The outcome, however, is far from complete smoothing.
The main risk-coping strategies which are hypothesized in the literature (risk sharing and the
use of assets as buffer stocks) were not effective during the survey period.

S CHANTARAT, AG MUDE, CB BARRETT (2013)

Their article describes a novel index‐based livestock insurance (IBLI) product piloted among
pastoralists in Northern Kenya, where insurance markets are effectively absent and uninsured
risk exposure is a main cause of poverty. They describe the methodology used to design the
contract and its underlying index of predicted area‐average livestock mortality, established
statistically using longitudinal observations of household‐level herd mortality fit to remotely
sensed vegetation data. Household‐level performance analysis based on simulations finds that
IBLI removes 25–40 percent of total livestock mortality risk. They had describe the contract
pricing and the risk exposures of the underwriter to establish IBLI's reinsurability on
international markets.

SINGH SHYAM PRAKASH CHANDEL B.S., HORO ANIKETA (2016)

Insurance scheme during the years 2005–06. Under the scheme, crossbreed and high yielding
cattle and buffaloes were insured at maximum of their current market price. The average rate
of premium collected was 2.4 per cent of value of the animal. Government provided subsidy
to the extent of 75 per cent in amount of premium to the farmers. Yet only 2.5 per cent of the
milch animals in Haryana state were insured in 2012–13. The paper analysed the aspect
whether the livestock insurance was loss making proposition to the insurance companies or
to the farmers or both. The study observed that the overall claim amount to premium

53
collected ratio was 0.48 which left substantial amount of the premium with the company
after meeting the operational expenses and there seems to be no reason for lacking its
widespread success and implementation.

SP Singh, BS Chandel (2020)

Livestock insurance scheme has been formulated with the twin objectives of providing
protection mechanism to the small, marginal and landless farmers against any eventual loss
of their animals due to accident or natural death and to attain qualitative improvement in
livestock and their products. Despite this, farmers and agencies faced various constraints in
involved livestock insurance. From the analysis, it can be concluded that farmers opted for
livestock insurance considered major constraints as animals not insured at actual market
price and lengthy procedures in completing the formalities to file the claim. The insurance
companies considered lack of information about willing farmers and untimely submission of
documents for claims as the most important constraint in doing the insurance.

54
To cover the risk of animal death, Government of India (GOI) introduced the livestock

CHAPTER 4:- DATA ANALYSIS AND INTERPRETATION

55
 1. Do you know what is livestock ?

Interpretation:

This pie diagram shows that 75% peoples are aware about livestock and 25%
are not aware.

56
 2. Are you aware about livestock insurance ?

Interpretation:

This pie diagram shows that 75% peoples are aware about livestock
insurance and 25% are not aware.

57
 3. Have you taken an livestock insurance policy ?

Interpretation:

This pie diagram shows that 52.5% peoples have not taken livestock insurance
and 47% people have taken the livestock insurance policy.

58
 4. If yes, which animal have you insured ?

Interpretation:

This pie diagram shows that 35% peoples have taken cattle insurance policy,
32.5% peoples have taken horse insurance policy, 22.5% peoples have taken goat insurance
policy and 10% peoples have taken sheep insurance policy.

59
 5. Which type of livestock policy have you taken ?

Interpretation:

This pie diagram shows that 52.5% peoples have taken farm type insurance
policy and 47.5% peoples have taken dairy type insurance policy.

60
 6. What is the period of livestock insurance policy you have taken ?

Interpretation:

This pie diagram show that 35% peoples have taken the policy period of 1 year,
30% peoples have taken the policy period of 2 year, 7.5% peoples have taken the policy
period of 3 year and 27.5% peoples have taken the policy period of more than 3 years.

61
 7. Which kind of risk is covered under livestock insurance ?

Interpretation:
This pie diagram shows that 50% peoples think all type of risk is
covered which has been mentioned in the above diagram. 20% peoples think that beside
death is covered in the livestock insurance policy. Whereas 15% peoples think natural death
and disability caused by fire is covered under livestock insurance policy.

62
 8. What kind of diseases are covered in the policy ?

Interpretation:

This pie diagram shows that 60% peoples think all diseases are covered in
the policy. 20% peoples think goat pox , 12.5% peoples think sheep pox where as 7.5%
peoples think rinderpest disease is covered under livestock insurance policy.

63
 9. Is the claim settlement procedures is easy or complicated ?

Interpretation:

This pie diagram shows that 57% peoples think claim settlement
procedure is moderate, 30% peoples think it is easy and 12.5% peoples think complicated.

64
 10.Which kind of animal breeds can be insured ?

Interpretation:

This pie diagram shows that 32.5% peoples think cattle and ship both
breeds can be insured, 22.5% peoples think all kind of breeds can be insured where as 15%
peoples think cattle insured and 7.5% peoples think dog breeds can also be insured in the
livestock insurance policy.

65
 11.If you have any exotic animal which type of insurance have you taken
for him ?

Interpretation:

This pie diagram show that 55% peoples have taken the livestock insurance
policy for their pet dogs (huskey), 31.6% peoples have taken for their persain cat and 13.2 peoples
have taken policy for their aqutic animal (fish).

66
 12.What are the medical exclusion your insurance policy have?

Interpretation:

This pie diagram shows that 42.5% peoples are saying that natural
exclusion has been mentioned in their medical policy have, where as32.5% peoples saying
that non accidental death and 25% peoples are saying that uncovered diseases are mentioned
in the exclusions.

67
 CHPTER 5. FINDINGS AND SUGGESTIONS

 From the research it is observed that most of the peoples not are aware about the
importance of livestock.

 From the research it is observed that peoples are saying that they know the importance
of livestock but more than 50% peoples had not taken any livestock insurance policy.

 From the research it is also observed that many of the peoples have farm type
livestock insurance policy.

 From the research it is observed that peoples don’t know the detailed medical
exclusions of livestock insurance policy.

 From the research it is observed that peoples are not aware that the exotic animals are
not considered in livestock.

 From the research it is observed that all diseases are not covered under the livestock
insurance policy.

 From the insurance it is observed that the main stream insurance companies are not
promoting their livestock insurance policy.

 From the research it is also observed that peoples don’t know the actual claim
procedure of livestock insurance.

68
 SUGGESTIONS

 Government should conduct awareness programs of livestock insurance in every

district in India.

 Insurance companies should bridge the gap between cattle insurance and the exotic
livestock insurance policy.

 Peoples should maintain the balance between eco-system and technology.

 Government should study the adverse effect of pollution on livestock.

69
 CONCLUSION

India being a diverse country with varied climatic zones, soil cover and livestock aggregation
require an effective safeguard from environmental variations, natural disasters and sudden
outbreaks of fatal diseases pertaining to livestock. This can only be achieved by creating
awareness among the rural livestock farmers and motivating them to insure their animals.
There is lack of knowledge among farmers about certain scientific aspects of livestock
farming, livestock insurance being one of those. Studies have suggested that adoption of
livestock insurance among livestock owners is mainly effected by motivation by friends and
community members followed by high probability of disease occurrence in particular area,
effective risk assessment and previous experience of livestock owners. Knowledge of any
practice plays an important part in adoption, therefore, focus shall be made on increasing the
knowledge domain of the farmers through awareness camps and trainings. Further, the
insurance institution should take measures like developing infrastructure, to reduce the
premium and appoint proper staff to guide the farmers for the insurance. Although the central
and the state governments are taking up policies to cater the needs of the livestock owners but
still reaching to the grassroots is a challenge. To increase the insurance coverage, to equip the
livestock farmers with latest knowledge about insurance, to assess their information needs
pertaining to insurance and to address them, seem to be the few decisive challenges but can
eventually be fulfilled by better extension and advisory services.

70
 BIBILOGRAPHY:

 Crop and Livestock Insurance (Esther Marie Colvin)

 Livestock and aquaculture insurance in developing countries (Food and

Agriculture Organization of the United Nations

WEBILOGRAPHY :

https://www.reliancegeneral.co.in/Insurance/Rural-Insurance/Livestock-Insuranceaspx

https://wwwroyalsundaram.in/business-insurance/rural-sector/livestock-insurance

https://wwwsciencedirect.com/science/article/abs/pii/S030438780600006X

https://www.paisabazaarcom/rural-insurance/cattle-
insurance/#:~:text=What%20is%20Cattle%20Insurance%3F,protection%20against%2
0the%20cattle%20loss

https://en.wikipedia.org/.wiki/Insurance

71