February 23, 2006

India provides insurance cover to cattle farmers

India has approved a Livestock Insurance Scheme (LIS) which aims to provide protection to farmers and cattle rearers against losses and encourage improvements to livestock breeds.

The pilot scheme aims to cover 1.5 million animals in 100 districts for the next two years. Costs are estimated at Rs.1.2 billion (US$26.9 million), Finance Minister P. Chidambaram Wednesday announced.

Priority is given to districts where livestock is an important source of income and where efforts are made to introduce cross-bred and high yielding cattle.

The government will be subsidising 50 percent of the premium.

The subsidy in premium will be restricted to two animals per beneficiary and will be given for one-time insurance of an animal up to a maximum period of three years.  Private insurers were encouraged to participate in the scheme so as to get more competitive rates.

The scheme will supplement the National Project for Cattle and Buffalo Breeding (NPCBB) scheme currently available n various states.

In states where NPCBB is not being implemented, this scheme will be carried out through the state department of animal husbandry.

Special incentives are proposed for the veterinary practitioners and insurance agents promoting the scheme in remote areas. Insurance companies will be encouraged to appoint rural educated but unemployed women as insurance agents.