Livestock Insurance Scheme Introduced in Maharashtra; Farmers to Get 85% Premium Subsidy

Insurance cover for livestock deaths caused by accidents, natural disasters and diseases; up to 10 animals per family eligible

Mumbai, August 7: The Maharashtra Government has approved the administrative and financial implementation of a Livestock Insurance Scheme under the National Livestock Mission, providing financial protection to livestock-owning farmers in the event of the death of insured animals due to accidents, natural calamities or diseases.

The scheme will provide an 85 per cent subsidy on the insurance premium, with the remaining 15 per cent to be borne by the beneficiary. The initiative is aimed at protecting the financial stability of livestock farmers, ensuring timely compensation for losses and preventing them from falling into debt following the death of valuable livestock.

Maharashtra’s Minister for Environment and Animal Husbandry Pankaja Munde said unpredictable weather conditions, natural disasters, poisoning, snakebites, contaminated water, accidents and infectious diseases such as Lumpy Skin Disease can cause substantial losses to livestock owners.

“Livestock is a critical source of livelihood for thousands of rural households. The scheme is intended to provide timely financial support to farmers and help them withstand unexpected livestock losses,” Ms. Munde said.

Coverage for up to 10 livestock units per family

The scheme will be implemented through the Maharashtra Livestock Development Board and will cover indigenous and crossbred milch cows, buffaloes, bulls, male buffaloes, goats and sheep.

Each family will be eligible for insurance coverage for a maximum of 10 livestock units. Farmers wishing to insure additional animals beyond the prescribed limit will have to bear the entire premium for those animals.

The maximum insurance coverage will be:

• Milch cow: ₹70,000
• Buffalo: ₹80,000
• Bull: ₹70,000
• Male buffalo: ₹80,000
• Goat or sheep: ₹7,000

Beneficiaries may opt for insurance coverage for one, two or three years.

The premium rates have been fixed at 4.30 per cent for one year, 7.50 per cent for two years and 10.50 per cent for three years.

Of the total premium, 85 per cent will be subsidised by the Central and State Governments in a 60:40 ratio, while the remaining 15 per cent will be paid by the beneficiary.

Insurance value to be determined through joint assessment

The insured value of livestock will be determined based on the prevailing market value. A joint assessment will be conducted in the presence of the livestock owner, the insurance company and a veterinary officer.

In the case of milch animals, the valuation will also take into account their milk production capacity.

The insurance cover will apply to deaths resulting from accidents, floods, lightning, drought, storms, forest fires, heatwaves, earthquakes, natural causes and diseases.

However, partial or complete disability of livestock and transportation-related risks will not be covered under the scheme.

For goats and sheep, the insurance protection will be valid only within the geographical boundaries of Maharashtra.

Insurer must be notified within 24 hours of death

In the event of the death of an insured animal, the beneficiary will be required to notify the insurance company within 24 hours through a mobile application, website, email, telephone or written communication.

The beneficiary will subsequently have to submit the required documents to lodge the claim.

The scheme will operate under the “No Tag, No Claim” principle. However, livestock deaths caused by natural disasters will be exempt from this condition.

To qualify for insurance, the livestock must be registered on the National Digital Livestock Mission/system through a 12-digit ear tag and must have a health certificate issued by a government veterinary officer.

The required documents will include an identity document such as an Aadhaar card, voter ID, driving licence or bank passbook; a photograph of the livestock showing the ear tag clearly; a photograph of the livestock with its owner; and the prescribed health certificate.

Claims to be settled within 15 days

Once all required documents have been submitted and the claim is found to be complete, the insurance company will be required to settle the claim within 15 days, with the compensation transferred directly to the beneficiary’s Aadhaar-linked bank account through Direct Benefit Transfer (DBT).

In case of a delay beyond the stipulated 15-day period, the beneficiary will be entitled to additional compensation calculated at an annual interest rate of 12 per cent.

A mechanism involving regional and state-level committees will be established to review rejected claims and provide beneficiaries with an avenue for reconsideration.

The insurance company will also develop an online claims portal in Marathi and English to facilitate claim registration and faster settlement. District-level help desks, customer service facilities and grievance redressal mechanisms will also be established.

The government plans to promote awareness of the scheme through milk collection organisations, Go-Mitra personnel and Panchayati Raj institutions.

Veterinary officers assigned key responsibilities

Veterinary officers will be responsible for verifying livestock identity, conducting health examinations, assessing market value, completing ear-tagging and issuing health certificates.

In the event of an animal’s death, they will also be responsible for conducting post-mortem examinations and submitting the required post-mortem report within 72 hours.

Minister Pankaja Munde said the scheme is expected to provide much-needed financial security to livestock farmers and strengthen the resilience of rural households dependent on animal husbandry for their livelihoods.