Livestock insurance

The National Livestock Mission (NLM) aims towards employment generation, entrepreneurship development, increase in per animal productivity and thus targeting increased production of meat, goat milk, egg and wool under the umbrella scheme Development Programme. One of the objective of the programme is to promote risk management measures including livestock insurance for farmers.

Objectives

To manage the life risk and uncertainties by providing protection mechanisms to the farmers against any eventual loss of their animals due to death and to demonstrate the benefit of the insurance of livestock to the people.

Salient Features

• The Risk Management & Insurance is to be implemented in all the Districts of the Country including those carved out in future, if any.
• The indigenous / crossbred milch animals, pack animals (Horses, Donkey, Mules, Camels, Ponies and Cattle/Buffalo Male), and other Livestock (Goat, Sheep, Pigs, Rabbit, Yak and Mithun etc.) will be under the purview of this component.
• The number of animals to be eligible for insurance is 10 cattle unit per household for all animals except for pig and rabbit for which the number of animals will remain 5 cattle unit per household. (1 cattle unit =10 small animals like sheep, goat, pig, rabbit).

Insurance premium and Subsidy provided

The rate of premium should not exceed

• 4.5% in Normal Area, 5.5% in NER/ Himalayan States for annual policies,
• 8% in Normal Area, 9% in NER/ NER/ Himalayan States for two-year policies
• 11% in Normal Area, 11.5% in NER/ NER/ Himalayan States for three year policies.

The beneficiary share of premium for all categories and areas is 15%.  The remaining share of the premium will be shared by Central Government at the rate of 60:40 (for states other than Himalayan and NER states), 90:10 (for Himalayan / NER states) and 100% (for UTs) basis as per the funding pattern of the Government.

Implementation agencies

State Animal Husbandry Department and State Implementation Agencies.

Source : National Livestock Mission