Centre aims for low premium, coverage with new livestock insurance scheme

According to the parliamentary panel's reports, not even a single livestock was insured during 2022-23, whereas in 2021-22, 174,061 animals were insured

The Centre is considering a comprehensive livestock insurance scheme just like Prime Minister’s Fasal Bima Yojana, The Hindu reported. Currently, less than 1 per cent of the country’s cattle population is insured and the average yearly premium is 4.5 per cent of the insured amount.

The Union Animal Husbandry Ministry was recently pulled up by the Parliamentary Standing Committee on Agriculture and Animal Husbandry for the challenges farmers face from state government officials and insurance companies. 

Recently, the ministry was pulled up by a Parliamentary Standing Committee (PSC) for zero insurance coverage of livestock in 2022-23.

The Centre is planning to introduce the scheme ahead of the 2024 Lok Sabha elections. 

The ministry is considering waiving premiums for cattle rearers from Scheduled Caste (SC)-Scheduled Tribe (ST) communities. 

For this purpose, the ministry recently held a meeting with several insurance companies and other stakeholders. The main focus of the scheme will be to reduce the premium to attract more farmers to enroll in the insurance scheme. 

The new comprehensive scheme will replace the current Centrally-sponsored scheme which is functional in approx 100 districts of the country and is managed by the respective State Livestock Development Boards.  

The Centrally-sponsored scheme is being managed by the respective State Livestock Development Boards.

According to the ministry, farmers are often stuck in a fight between state government officials and insurance companies. 

The report further added that the ministry prefers direct transfer of benefits to farmers’ accounts.

According to the panel's reports, not even a single livestock was insured during 2022-23, whereas in 2021-22, 174,061 animals were insured. The panel also recommended developing an app-based livestock insurance facility for livestock owners.

Farmers have asked for compensation when India lost around 200,000 cattle to the Lumpy Skin Disease pandemic. With the new scheme, the Centre is aiming for lower premiums and maximum coverage.