INTRODUCTION
Livestock Insurance scheme plays a vital role in the global agricultural landscape as a whole. For farmers in India, their animals and land are not only a source of Income but also a part of their lives. Livestock Insurance Scheme provides a shield to the farmers from risks like diseases, drought, accidents, natural disasters, and cattle death. A Livestock Insurance scheme is basically a financial program developed to protect farmers against financial losses. These financial losses may concurrently include the various risks mentioned below.
These risks may include :-
1. Disease outbreaks: Livestock may fall sick or be affected by diseases undoubtedly leading to big medical expenses and a decrease in market value.
2. Natural disasters: Natural disasters like drought, floods, storms, and wildfires can harm/kill livestock, as well as damage the infrastructure necessary for their care.
3. Accidents: Livestock may sometimes get injured or die due to accidents, which may consequently put farmer’s investment at risk.
4. Theft and predation: Livestock theft by humans or predation by wild animals may also lead to financial losses to farmers.
Livestock Insurance scheme after all provides farmers with a protection blanket against these risks by compensating them for financial losses. The Government or private insurers correspondingly lead the scheme based on states and their agricultural policies.
HISTORY:-
The Livestock Insurance scheme is chiefly a scheme sponsored by the Government of India. Initially ,Government implemented it on a pilot basis during 2005-2006 and 2006-2007 of the 10th five-year plan and 2007-2008 of the 11th five years plan in 100 selected districts of India. Later the Government implemented this scheme regularly from 2008-2009 in 100 newly selected districts. Later the Government subsumed the scheme as a component titled Risk Management and Insurance under the sub-mission on livestock development of the National stock mission. Government launched the scheme in all districts of India on 21.05.2014.
OBJECTIVE OF LIVESTOCK INSURANCE SCHEME:-
The main goal of the scheme is to manage both risks and uncertainty by providing a protection mechanism to farmers against risks as mentioned above.
HOW DO LIVESTOCK INSURANCE WORKS:-
Livestock Insurance works on a simple principle that farmer pays a regular premium to an insurance provider.In return, they receive coverage of their livestock losses due to covered risks. Detailed explanation is as follows:
1. Registration:Farmers who want to avail the benefits of the scheme have to register their cattle with an insurance company. In order to that farmers need to provide the details of livestock like age, health condition, breed, and other information.
2. Premium payment: Farmers pay the premium usually on an annual basis. After all the premium amount depends on many factors like the type of livestock, their age, the region climate, and risks covered by the policy.
3. Risk assessment: The insurance provider examines the risks associated with the insured livestock. Thereafter risk assessment helps in determining the premium amount and coverage offered.
4. Claim Process: The farmer can file a claim with the insurance provider when a covered event such as a natural disaster or disease outbreak leads to financial losses to the farmer. To file the complaint, a farmer must provide evidence of the losses which may include photographs, veterinary records, and other documentation.
5. Compensation: If the insurance provider accepts and approves the claim , he has to compensates the financial losses. This compensation helps the farmer to recover financial losses and continue the livestock farming activities.
IMPORTANCE OF LIVESTOCK INSURANCE SCHEME:-
The Livestock Insurance scheme is a beneficial scheme for both farmers and agricultural sectors. The following are the importance of this scheme:-
1. Risk Mitigation: Through this scheme, the Government provides a safety blanket to farmers from financial losses associated with livestock farming. This in turn encourages more people to engage in ivestock farming which contributes to food security and rural development.
2. Financial stability: Farmers who have invested in livestock Insurance, are better equipped to face financial losses caused by unexpected events. They can reinvest the amount in their farms to improve animal husbandry practices and increase their productivity.
3. Promoting agricultural growth:Livestock farming is a very crucial component of agriculture and the availability of insurance can stimulate investment in this sector. This leads to increased livestock production for meeting the increased demand for animal products like meat, milk, & eggs.
4. Climate Resilience: Livestock insurance helps farmers adapt and recover from extreme weather events in regions prone to climate change-related challenges. This is very important in a changing climate for ensuring food security.
5. Rural development: Livestock Insurance can play a role in reducing poverty and improving living standards in rural areas. Insurance allows farmers to invest more in their communities, creating jobs and supporting local economies.
CHALLENGES AND CONSIDERATIONS:-
Although Livestock Insurance scheme provides remarkable advantages, they also face the following challenges:
1. Affordability: For small-scale farmers, it is costly to pay the premiums and thus makes it difficult to pay on time. Both The government and allied organization needs to find a way to make insurance premiums more affordable for all farmers.
2. Fraud and Moral hazard: Some farmers may take advantage of insurance by falsely claiming or not adequately protecting their livestock. Farmers may ultimately produce wrong documentary evidence to claim the insurance. Hence Insurance providers must develop a system to prevent fraud and moral hazards.
3. Data Collection: Accurate data on livestock population, health, and risks as a whole are essential for an effective insurance program. In many regions, accurate data collection may be challenging. The government needs to put an effort into improving data quality, correctness, and availability.
4. Awareness and education: Many farmers in remote as well as rural areas are not aware of this scheme and its benefits. Education, awareness, and training are needed to increase the overall participation.
CONCLUSION:
Livestock Insurance scheme is very instrumental not only in safeguarding the livelihood of farmers but also promoting the agricultural growth.By reducing the risks of livestock farming this scheme plays a vital role in food security as well as rural development .Though there are many challenges, Government along with society and insurance provider may formulate some effective system to overcome those challenges.With the ever changing agricultural landscape , Livestock Insurance Scheme play a significant role in supporting the men and women who dedicate their lives for caring for livestock and arranging food on our tables.
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