Goat Farming Insurance in India, Companies, Policies, and Premiums

Introduction to Goat Farming Insurance in India: Goat farming is becoming increasingly popular in India for some reasons. The growing demand for goat milk (due to medicinal properties) and goat meat is forcing a large number of farmers to enter goat farming. Goat farming depends on weather and climate and that is why goat farming is mainly in the states of Orissa, Jharkhand, Uttar Pradesh, West Bengal, Bihar, Maharashtra, Madhya Pradesh, Rajasthan, Telangana, and Tamil Nadu, Andhra Pradesh, Karnataka states of India.

Guide on goat farming insurance in India, why goat insurance, goat farming loan, breeding policies, scope for goat insurance and insurance coverage

Why goat insurance?

Goat farming is a lucrative business if done properly. Like any other business, it is risky. Given the docile nature of goats and their susceptibility to diseases, it is always advisable to insure them. In the intensive system of goat and sheep farming, animals are confined to a small space and together. A sick animal can spread the disease to others. Spreading out can make you listen and end up investing. You should always vaccinate goats and take precautionary measures. Goat insurance covers sudden and unexpected death of animals.

Common conditions

Fire, lightning, explosion, storm, typhoon, hurricane, tornado, flood and inundation, earthquake, famine, aircraft damage, missile testing operation.
Riot, Strike.
Surgical operations
Accident

Common exclusions

Malicious or negligence, overload, unskilled treatment, or use of animals in addition to the purpose stated in the policy.
Accidents occur or disease contracted before the risk commencement.
War invasion, an act of a foreign enemy hostilities (whether war be declared or not) civil war, insurrection mutiny, military or usurped power or any consequences thereof, or attempted threat.
Any accident, damage, loss, or legal liability arising out of or contributing to direct or indirect nuclear weapons.
Consequential loss of whatsoever nature
Air and sea transport.
Outbreaks appear to be exacerbated within 15 days of the onset of the disease.
Disabilities of any kind can be permanent or temporary.
Enterotoxaemia, Sheep Pox, Goat Pox, Rinderpest, Foot and Mouth Disease, Anthrax, Hemorrhagic Septicemia, Black Quarter are excluded until the animal is successfully vaccinated (safe).

The bank / financial institution providing insurance for goat farming

Below is a list of banks / financial institutions providing goat insurance. We recommend that you read the terms and conditions and consult with the authorized person of the relevant bank before selecting an insurance provider.

1. SBI General Insurance Company Limited

A joint venture between the SBI (State Bank of India) and the IAG (Insurance Australia Group). The total capital of SBI has about 74% and IAG has the remaining 26%.

2. New India Insurance Company Limited

It is a Government of India-owned multinational insurance company, headquartered in Mumbai, India. It is a co-promoter of GIC Housing Finance Limited and Agriculture Insurance Company of India.

3. The Oriental Insurance Company Limited

It is headquartered in New Delhi and operates in various cities of India. All the shares of this company are held by the Central Government of India.

4. Other Institutional Goat Insurance Provider

United India Insurance Company
IDBI Bank Limited

Process for applying goat farming policy

An animal will be insured at its current market value. Goats are to be assessed by the animal owner and the insurance company through joint negotiations in the presence of a veterinarian. In case of dispute, the price will be determined by the Gram Panchayat / BDO.

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Goat Farming Insurance — Image Source: Pixabay

The insured animal must be properly identified at the insurance claim time. Therefore, as far as possible, ear tagging should be complete proof. The traditional method of tagging the ear or the latest technology of fixing microchips can be used when taking the policy. The nature and quality of the tagging material will be agreed upon by the beneficiaries and the insurance company.

Veterinary practitioners can guide users on the need and importance of the tags assigned to their claim settlement so that they can take proper care of the tags. The pre-existing tag on the animal can be used with a unique identification number provided that the farmer and the agency agree on it and there will be no dispute in the settlement of claims due to the use of the existing tag.

When processing the insurance proposal, when processing the insurance documents, a photograph of the animal with the owner and a photograph of the animal with an ear tag will be taken. In the case of the sale of an animal or otherwise transfer of animal from one owner to another, before the end of the insurance policy, the beneficiary will have to transfer the power to the new owner for the remainder of the policy.

Insurance companies will only need four documents to settle claims. Notice with the insurance company, insurance policy paper, claim form, and postmortem report. In case the claim is due, the sum insured must be paid positively within 15 days after submission of required 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% compound interest per annum to the beneficiary.

Scope for goat insurance

This scheme also operates under the market agreement.
The policy compensates indigenous and exotic goats for accidental deaths (including fire, lightning, floods, storms, famines, strikes, riots, and civil unrest) and illness.
Earthquake and landslide slides are also provided.
Animals are identified by ear tags of small brass buttons.
Under the scheme category, animals get some benefits in premium rate and claim procedure.

The scope of the agreement

The policy provides compensation against the death of goats due to accidents including fire, lightning, floods, storms, famines, earthquakes, landslides, strikes, riots, or diseases during the insurance period.

Indigenous means a person whose parents are of Indian breed.
Exotic animal means having parents of a foreign breed. This includes animals born in India as well as animals born abroad.
For insurance, cross-bred means that one of the parents is of foreign origin.

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Valuation and sum insured

The market value of goats varies from generation to generation, depending on the region and from time to time. The veterinarian’s recommendations will be considered an appropriate guideline for insurance approval as well as claim settlement.
The sum insured shall not exceed 100% of the market value.

Premium rates

Basic – 4% gross per annum.

Additional rates

1% gross for cross-bred animals
2% gross group discount for exotic animals

Group discount

The group discount under this goat farm scheme will be available as under

No discount up to 100 animals.
101 to 500 animals 5% of the total premium
501 to 1000 number of animals 7.5% of the total premium
1001 to 5000 number of animals 10% of the total premium
5001 to 10000 animals 15% of total premium animals
Above 10000 animals 20% of the total premium
For a group size of 50 females and 2 male goats, there may be a discount of 2.5%.

Minimum premium allowed

The minimum premium will be Rs. 30 / – per policy.

Sections to cover under a goat insurance policy

This policy has four sections to cover housing material tools that apply to the personal accidental hospitalization and permanent disability of the proposer.

Section 1: Covers tools and equipment against special hazards, including residential materials such as fire and earthquake.
Section 2: Hospitalization coverage for proposer and family should not exceed 7. Depending on the parents.
Section 3: Covers accidental death and permanent disability.
Section 4: (Optional)

Coverage of death of proper goats due to Accident and Illness

Animal age group to be covered – Goats 4 months to 7 years

Goat farming policy under HDFC Ergo general insurance company limited

This policy is voidable at the option of the company in case of misrepresentation, misdescription, or non-disclosure of any particular material by the owner of the goat domestic, foreign, crossbred insured, or the owner of the sheep or goat beneficiary under this policy. If it is different from this policy. Any insured person who intentionally and with the intent to deceive the insurance company or other persons, offers insurance with any misinformation, or with the intention of misleading, conceals any factual information and commits a fraudulent insurance act.

The policy is revoked at the discretion of the insurance company and as a result, the insurance benefits are denied. The insured will provide the company with all reasonable information, details, documents, evidence, and assistance in processing any claim at its own expense, including showing the company dead sheep and goats on demand and allowing company representatives to meet in advance and appropriately.

During the times, inspect and inspect the premises of the insured or the owner/beneficiary of the goat (if they are different from the insured) where the body is kept to investigate the claim. If required by the company, insured or the owner/beneficiary of the goat (if they are different from the insured), confirming the truth of the claim and any matter in the legal form required by the company affirming the truth of the claim and any matters connected therewith.

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Goat farming loan

Goat Farming Loan is a type of working capital loan used for managing and raising livestock. Starting a goat farming business requires a decent amount of money. As one of the best livestock management departments in the country, goat farming is becoming more popular with higher profits and income potential. It is a profitable business with a long-term vision. Commercial goats are farmed on a large scale by large enterprises, traders, manufacturers, and producers. Goat farming is the main source of milk, skin, and fiber. Goat farming loans can be used for purposes such as the purchase of land, construction of sheds, purchase of goats, purchase of fodder, etc.

Goat breeding policy

It aims to improve growth, body weight, reproductive efficiency, quality and quantity of meat and wool, and reduce mortality. Area-specific methods will be adopted to improve the quality and quantity of coarse wool and fine wool. Artificial insemination will also be encouraged. Also, consider the cross-breeding with high-yielding exotic and other native breeds of goats.

Goat Sukshma Bima Policy

It declares that any accident (including fire, lightning, flood, cyclone, and famine) or any acceptable diseases (i.e., render pest, black quarter, hemorrhagic) within the geographical area specified in the schedule, or any admissible diseases (Viz. Rinderpest, Blackquarter, Hemorrhagic, Septicaemia, Anthrax, Foot and Mount Disease, Theilariasis, Bank Kumeri, Enterotoxaemia, Contagious Caprine Pleuropneumonia (CCPP), Osteoporosis, Tuberculosis, Sheep-pox, and Parasitic diseases) If vaccinated properly and preventive and other curative measures are taken from time to time; the company will settle claims on 80% of the sum insured and the insured will bear the remaining 20%. If any of the animals mentioned in the schedule and belonging to the insured

(Due to an accident (due to fire, flood, lightning, storm, and famine) or
Due to disease including render paste, black quarter, hemorrhage will die within the geographical area. Septicemia, anthrax, foot and mouth disease (FMD), thalassemia, enterotoxemia, sheep pox, goat pox, HSBO (these diseases fall under the policy if the animal is successfully vaccinated (protected) and the necessary veterinary certificates are provided to the company, during the contract or policy period or
Surgical operations
Strike, Riot, and Civil Commotion risks, then the Company will pay or make Good to the Insured, after receipt of the proof of death satisfactory to the company.

Insurance coverage

It will provide compensation against the death of goats due to accidents including fire, lightning, flood, storm, famine, earthquake, landslide, strike, riot, or diseases during the insurance period.

Veterinary examination

Report of veterinary surgeon’s age, identification marks, animal health, and indications of immunization should be obtained for each suggestion.
Wherever Veterinary Surgeons are not available, the Underwriting Office may accept health certificates issued by Livestock Inspectors / Supervisors who are diploma holders with the approval of HO. Such certificates will only be valid for the approval of the proposal.
Fresh veterinary examination is not necessary if renewal is done on time.
Insurers may pay a fee of Rs. 1 / – per animal to the veterinarian at the time of approval of the proposal.

Animal identification

All insured animals should be identified by metal ear tagging and/or tattooing. Signs of natural identification should be written in the proposal and veterinary health certificate. In addition to the price of the air tag, the company will bear the tagging charges which do not exceed Rs. 1 / – per animal.

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Claim procedure

In case of the death of the animal, the company should be informed immediately and the insured should provide the following documents and required information.

Duly completed claim form.
Postmortem examination report.
Ear tag wherever applicable.

Transfer of interest

Provided that the company has been given prior notice in writing, the policy may be transferred to the approved new owner or to cover a new (other) animal that is subject to adjustment of premium based on reasonable proportions. Conditional requirements such as air tag and health certificate. A transfer fee of Rs. 15 / – should be collected.

Migration of goats

Claims arising out of the geographical area in case of drought, epidemic diseases and natural disasters, movement of insured animals is essential. This kind of relaxation can be extended to the movement of sheep and goats from the lower level to the higher depending on the climatic conditions in the area. In addition, sheep and goats are allowed to move within 80 km without any additional premium.

Sum assured

It will be less in the following two cases: –

1. Purchase price/market value

2. Diagnosis by a veterinarian (based on lactation capacity, number of lactation)

Papers required

Proposal Form
Medical Certificate from Veterinary doctor
At least 3 photographs of insured animals the size of a medical certificate postcard from a farm veterinarian, provided by the proposer where the applicable tag can be identified.
DD / Check along with the above documents

Claims settlement

Intimation should be notified immediately on its 24×7 toll-free customer care number. The person needs to be approached. The list of documents along with the claim form needs to be submitted by the proposer / insured. The policy provides compensation for domestic breeds and exotic goat animals under the scheme which has some advantages in premium rate and claim procedure.

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Goat Insurance in India — Image Source: Pixabay

Covered risks

Death due to accidents (including fire, lightning, flood, storm, famine, strike, riot, and civil unrest) and disease. Earthquake and landslide slides are also provided. Diseases are covered only if the company is provided with the necessary veterinary certificates (excluding anthrax).

Major exclusions

Malicious act, before the onset of an accident/disease threat, transportation by air or sea, intentional slaughter, theft or clandestine sale, loss of insured animals, war and related hazards, nuclear Exclusion clause.