Sheep Farm Insurance in India, Companies, Policy, and Premium

Introduction to sheep farm insurance in India: Sheep farming is a profitable business. It provides a reliable income source for shepherds through the sale of wool and animals. In general, the sheep insurance scheme was introduced by the Government of India in the 11th Plan. The sheep farm insurance provides insurance coverage against the death of sheep in the age group of about 1 to 9 years in the area covered by the Central Wool Development Board.

The term of insurance is 12 months. The premium per sheep for insurance is Rs. 44 of which Rs. 19 is contributed by users and Rs. 25 by the Government of India. In return for this premium, the insurer is entitled to a compensation of Rs. 1,200 per sheep in case of death of sheep. The scheme is implemented by the Central Wall Development Board and is run by insurance companies. The Oriental Insurance Company of India has been selected by the Central Wool Development Board, Ministry of Textiles to run this scheme.

Sheep make a valuable contribution to the economically weaker sections of the society through their multifaceted utility of producing wool, meat, hides, manure, etc. Realizing the importance of sheep, some development activities have been launched in the state, including rapid sheep development insurance. Financial assistance from banks has been made available along with other incentives and insurance.

Why do sheep farmers need insurance?

Like any other business in any other industry, there are some risks involved in running a sheep farm. Some of these risks are similar to the risks faced by other business owners. However, some are unique to your specific industry. For example, a third party may file a lawsuit against you after you were injured while on your farm, your building and equipment may be naturally damaged, or your livestock may be unexpectedly damaged.

May get sick or die. As the owner of your sheep farm, you are responsible for any mistakes. If someone is born unexpectedly, you are responsible for the costs involved. The cost, of course, can be huge. If you are properly insured, instead of paying these costs out of your pocket, your insurance carrier will cover them for you. Therefore, sheep farm insurance can help protect you from serious financial losses. It also confirms that you are compliant with local laws, as sheep farmers legally require certain types of coverage.

Sheep Sukshma Bima Policy

Scope of Sheep Sukshma Bima Policy

Scope – This scheme provides rates, terms, and conditions for the underwriting sheep insurance business in India. Under this scheme, all domestic, ethnic, and foreign sheep will be covered.

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

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Age group

Non-Scheme Animals aged 6 months to 6 years
Scheme Animals aged 4 months to 7 years

Valuation and sum insured

Market value of sheep varies from generation to generation, region, and from time to time. The recommendations of veterinarians will be considered appropriate guidelines for insurance approval as well as claims settlement.
The sum insured shall not exceed 100% of the market value.

Premium rates

Indigenous animals 4% gross per annum
For Cross-bred animals 5% gross per annum
For Exotic animals 6% gross per annum

Group discount

Up to 100 animals – No Discount
From 101 to 500 – 5% of the total premium
From 501 to 1000 – 7.5% of the total premium
From 1001 to 5000 – 10% of the total premium
From 5001 to 10000 – 15% of the total premium
Above 10000 animals – 20% of the total premium

And, the minimum premium will be Rs.30/- per policy.

Insurance coverage

This policy will provide compensation against the death of sheep due to accidents. Fires, lightning, floods, storms, famines, earthquakes, landslides, strikes, riots or illnesses occur or occur during the insurance period.

Exclusions

Willful injury or malicious, or use of the animal for any other purpose as stated in the policy without the consent of the Company in writing.
Accidents and/or illnesses occur before the commencement of risk.
Intentional slaughter of animals except in cases where destruction is necessary to eliminate incurable human suffering based on a certificate issued by a qualified Veterinarian or in cases where destruction is resorted to by the lawfully constituted Authority.
Theft and Clandestine sale of insured animals.
War, Invasion, Foreign Enemy Action, Hostility, Civil War, Insurrection, Mutiny, Tumult, Military, or usurped power or any consequences thereof or attempt thereat.
Any accident, loss, damage, or legal liability arising due to nuclear weapons.
Consequential loss of any kind.
Transport by air and sea.
Any non-scam claims arising out of illness within 15 days from the date of exposure are not covered.

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Specific exclusions

Enterotoxaemia, Sheep Pox, Rinderpest, Foot & Mouth Disease, Anthrax, H.S.B.Q. These diseases fall under the policy if the animal is successfully vaccinated (protected) and the company is provided with the necessary veterinary certificates.

Veterinary examination

A report of veterinary surgeon’s age, identification marks, animal health, and indications of immunization should be obtained for each proposal.
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 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 approval time of the proposal.

Animal identification

All insured animals should be identified by tattooing or metal ear tagging.

The natural identification mark must be written on the proposal and the veterinary health certificate. Also, the price of the air tag, the company will bear the tagging charges which do not exceed Rs. 1 / – per animal.

Claim procedure

In the event of death, the company must be notified immediately and the insured must provide the following documents and required information.
Duly completed claim form.
Death certificate from a veterinarian on the company’s farm.
Post-mortem examination report by the company.
Ear tags where applicable.

What kind of insurance do sheep farmers need?

There are many different types of sheep farm insurance coverage that sheep farmers need. Coverage requirements may change from farmer to farmer, as it depends on the specific details of your farm. Examples of some of the key coverage you will need include;

Commercial general liability

To protect yourself from third-party property damage and personal injury claims, must Liability insurance will be required. This policy covers any lawsuit that can be filed against you by someone who is not affiliated with your form if it has caused an injury to your property or claims that you or your employee has damaged their property.

Commercial property

You will also need to take out commercial property insurance, which protects your farm buildings and their contents from danger, theft, and vandalism. This policy will help cover losses if a fire breaks out or someone breaks into a building and steals.

Livestock insurance

Livestock can be infected or die unexpectedly. If this happens, the cost of caring for the animals or replacing your sheep can be very high. Livestock insurance will help cover the costs associated with harming your animal

Workers compensation

You will also need to have a workers’ compensation policy to protect your employees. If they are injured at work or have a work-related illness, this coverage will help pay for any medical care that employees may need, as well as if they are unable to work. If so, they will be compensated for any lost wages. The result of an illness.

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Equipment breakdown

You rely on a lot of equipment to run your farm and repairing or replacing this equipment can be quite expensive. With goods breakdown insurance, however, your insurer will cover them for you, rather than having to pay for these inconvenient expenses yourself.

Business interruption

If you have to stop working on your farm unexpectedly, this insurance will help cover any of your income until you can reopen the business. These policies are just a few examples of the sheep farm insurance you will need to run a livestock business.

Sheep farm insurance in India

Sheep insurance (Janashree Insurance Scheme)

Sheep health is being covered by Karnataka Sheep and Wool Development Corporation and sheep are also being provided free anti-parasitic drugs, other activities of the corporation are training, farmers, extension activities, and advertising. Improved breed of Rams is being provided to farmers interested in improved breeds at discounted rates.

It is planned to form a sheep rearing cooperative society for every 25,000 sheep population. Rs. 25,000 share capital will be provided to the best working societies on the annual basis. For the protection of the shepherds, the sheep are being insured under the scheme irrespective of breed, the age of Rs.1500. The following insurance companies are ensuring sheep over six months of age who are GOI entrepreneurs.

Name of Insurance Company Revenue Division

National Insurance Company Limited Bangalore
The Oriental Insurance Company Limited Mysore
United India Insurance Company Limited Belgaum
The New India Insurance Company Limited

The premium for a maximum of 10 Sheep owned by BPL shepherds is as follows;

Insurance per sheep – Rs. 112.00
Subsidy Rs. 92.00
Beneficiary partnership Rs. 20.00

Kendriya Bhed Palak Bima Yojana

In case of natural death, to provide insurance coverage to the sheep breeders, the family of the sheep breeders will be paid Rs. 60,000, Rs. 75000 will be paid in case of partial disability. Will Accidental death or if he loses both legs/limbs/eyes then Rs. 150,000 will be paid. For insurance premium, the contribution of farmer’s premium is Rs .80, LIC is Rs.100, and contribution of Central Wall Development Boards is Rs. 150.

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Objective

The main objective of the Sheep Breeders Insurance Scheme is to provide insurance cover to the shepherd in case of natural or accidental death and permanent complete/partial disability due to an accident.

Eligibility

To receive assistance under the Sheep Breeding Scheme, the Sheep Breeder must meet the following conditions;

A person who is involved in Sheep Breeding activities.
Sheep breeders, whether male or female, between the ages of 18-59 years are eligible to be covered under the Shepherd Insurance Plan.
Sheep breeders who benefit from CWDB schemes/projects will also be eligible.
It will be the responsibility of the state nodal agency authorized by the Central Wool Development Board to verify the eligibility of the sheep breeders whose claim has been identified to take advantage of it.

Premium for sheep breeders insurance

Premium contribution	Under Sheep Breeders Insurance Scheme
Govt. of India (CWDB)	Rs. 150/-
Sheep Breeder’s contribution	Rs. 80/-
Contribution of Govt. of India (Under Social Security Fund)	Rs. 100/-
Under insurance plan total annually premium	Rs. 330/

SBI General Insurance

Key features

Who can take this policy? The proposer can be any individual/group of people / cooperative body who is either the owner or has a genuine interest in animal protection.

Policy period – Minimum 1 year to maximum 3 years.
Coverage – Eligible age groups for coverage
Sheep – 4 months to 7 years

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Sheep Farming India — Image Source: Pixabay

What is the policy cover?

The sheep insurance policy covers sudden and unexpected death of animals due to Fire, Electricity, Explosion / Implosion

Sum insured

An animal will be insured at its current market value. The market value of the insured animal will be determined and agreed upon jointly by the beneficiary and the authorized veterinary practitioner.