Currently, the livestock insurance coverage is low at 10.7 lakh animals despite the Centre and states providing assistance through respective schemes. Even banks provide insurance cover if farmers take loans for buying livestock.
“The coverage is very poor at present mainly because the premium rate that is charged is higher at 3 to 5 per cent of the value of animals, which comes to Rs 647 per animal per annum. So, we want to bring it down to around Rs 200,” Animal Husbandry Secretary Devendra Chaudhry told Millennium Post.
Bringing down the premium rate to 1 per cent under the existing Livestock Insurance Scheme will not only encourage more farmers, but will provide better business value to insurance companies, he said, adding it’s for the first time the government has started working in this direction as it’s the farmers who get affected by sudden death of any milching animal.
The issue was discussed in the recent meeting with the insurance companies, who have been asked to submit their views on reducing the premium rate at 1 per cent considering death of livestock due to disease and natural calamity.
The representatives of National Insurance Corporation, New India Insurance, Oriental Insurance and United Insurance had participated besides the officers of Department of Animal Husbandry, Dairying and Fisheries.
The second round of discussion with insurance companies on this issue would be held next month and thereafter the government would frame a policy on livestock insurance taking inputs from the stakeholders.