The Rural sector has been defined as any place which, as per the last census, has a population of not more than 5000,density of population of not more than 400 per square kilometer, and at least 75% of the male working population engaged in agriculture. The Government of India has launched various programmes for the benefit of small farmers, marginal farmers, agricultural laborers, etc. Since 1980, all these programmes have been integrated into Integrated Rural Development Programme (IRDP) which is funded by the Central and State governments on 50:50 basis. The objective of the programme is to provide,to the target group of rural families, a package of assistance comprising of income generating assets, working capital, through subsidy, institutional credit, etc.
RURAL POLICIES -Rural policies comprise the insurance of:
1. various livestock, e.g., cattle, sheep, goat, etc.
2. sub-animals e.g., silkworm and honeybee.
3. plantation and horticultural crops, e.g. rubber, grapes,etc.
4. property e.g., agricultural pump sets, etc.
5. persons e.g., gramin accident.
• CATTLE INSURANCE
The word ‘Cattle’ for the purpose of the market agreement refers to the following animals, whether indigenous, exotic or cross bred, within the age limit indicated.Milch Cows : 2 years to 10 yearsMilch Buffaloes : 3 years to 12 years Stud bulls (Cow / Buffalo species) : 3 years to 8 Years.
• COVERAGE-Cattle policy prescribed by the agreement provides indemnity for death due to
(a) Accident (inclusive of fire, lightning, flood, inundation, storm, hurricane, earthquake, cyclone, tornado, tempest and famine)
(b) Diseases contracted or occurring during the period of this policy.
(c) Surgical operations
(d) Riot and strike
• EXCLUSIONS
i. Malicious or willful injury or neglect, overloading, unskillful treatment or use of animal for purpose other than stated in the policy without the consent of the Company in writing.
ii. Accidents occurring and/or disease contracted prior to commencement of risk.
iii. Intentional slaughter of the animal except in cases where destruction is necessary to terminate incurable suffering on human consideration on the basis of certificate issued by qualified Veterinarian or in cases where destruction is resorted to by the order of lawfully constituted authority.
• SPECIAL CONDITIONS PROVIDE AS FOLLOWS:
a. The company is not liable to pay the claim if death is due to disease occurring within 15 days from the commencement of risk.
b. Claim is not entertained unless the ear tags are surrendered to the Company. If the ear tags are lost the insured is responsible for notifying the Company and getting the animal retagged.
• NON SCHEME ANIMALS
In the event of death of an animal immediate intimation should be sent to the insurers and the following requirements should be furnished :
i. Duly–completed claim form
ii. Death Certificate obtained from qualified Veterinarian on Company’s form.
iii. Postmortem examination report if required by the Company
SCHEME ANIMALS
Intimation of loss / death of animal should be given to the Company or Financing Bank immediately, within 7 days. Claimant has to furnish the following requirements within 30 tag.
(a) Certification of death from Veterinary surgeon or a
Certificate jointly by any two of the following:
(i) Serpent of the Village
(ii) President or any other Officer of Co-op. Credit Society.
(iii) Official of the Milk Collection Centre, or others specified.
(b) Duly–completed and signed claim form along with ear tag.
SUM INSURED
The market value of cattle varies from breed to breed, from area to area and from time to time. The sum insured is based on market value as recommended by a Veterinarian. Indemnity is based on sum insured or market value whichever is less. In case of scheme animals, the policy is issued as agreed value policy and claims are settled for 100% of sum insured.
PREMIUM
The premium rates are lower for scheme animals than for non-scheme animals. This applies to indigenous / cross-bred animals. Higher rates are charged for exotic animals. Group discounts and long-term discounts are available. There is provision for percentage increase in renewal premium for adverse claims experience.
SHEEP AND GOAT INSURANCE
The policy provides indemnity (sum insured or market value, whichever is less) against death of sheep and goats due to
– Accident (including fire, lightning, flood, cyclone, famine, strike, riot and civil commotion) or
– Disease
– Occurring or contracted during the period of insurance. The exclusions are more or less the same as under the cattle insurance policy. These relate to willful neglect, intentional
POULTRY INSURANCE
‘Poultry’ for the purpose of the market agreement refers to (a)layers (b) broilers and (c) parent stock (exotic and cross-bred
only). The agreement prescribes age limits and minimum number of birds to be insured. The policy provides indemnity against death of birds due to accident (including fire, lightning, flood, cyclone / storm / tempest/earthquake, strike, riot, act of terrorism) or disease contracted or occurring during the period of insurance.
CLAIMS
Claims are admissible only if the mortality due to insured peril in the flock exceeds the ‘excess’ limit prescribed. For example, for broilers 5% of the population in each batch is
the ‘excess’ limit. Daily mortality details should be submitted on weekly basis, failing which reports will be treated as ‘nil’ for that week. In the case of alarming death / out break of epidemic nature, notice within 12 hours should be given and all birds segregated and produced for inspection. Also, the insured should arrange emergency sale of live birds in the presence of Company’s representative. This is for the purpose of averting or minimising
the loss.
SERICULTURE (SILK WORM) INSURANCE
The insurance scheme is applicable to Univoltine, Bivoltine and Multivoltine breed of silkworms fed on mulberry leavesonly. Indemnity is in respect of total loss or destruction of the cocoons, following the death of the silkworm due to accident or disease during the period .
HONEY BEE INSURANCE
The insurance applies to hives and / or bee colony belonging to the cooperative society. The cover is in respect of all accidental loss or damage to the hive and/or bee colony. Theft risk can be covered on payment of additional premium.
THE INSURED
The insured is the individual farmer whether owner or tenant. However, a policy may be issued in the name of a registered body of farmers formed for the purpose of procurement of
input, marketing of produce etc. Particulars of each member must be recorded in a schedule to the policy, so that claims can be settled on individual basis.
SUM INSURED
The sum insured shall be based on the cost of cultivation on Input Cost or Cost of Raising / Development of trees, depending on the crop which is insured.
SETTLEMENT OF CLAIMS
The policy includes a specific crop–wise clause which provides a percentage scale of costs of inputs corresponding to various stages of cultivation. Losses due to any or all of the excluded perils and / or improper maintenance shall be quantified and deducted to arrive at the loss payable.
CYCLE RICKSHAW POLICY
The policy provides similar cover as under a pedal–cycle policy. Accidental damage is subject to excess of Rs.25/-. It includes legal liability for death or injury of passengers with a limit of Rs. 500/- each for 2 passengers and damage to their goods of Rs. 500/-.
ANIMAL–DRIVEN CART INSURANCE
The cover is provided under three sections.
a. Loss or damage to cart or Tonga by accidental, external means, fire, lightning, storm, flood, burglary, theft, riot, strike, malicious act., terrorism and when in transit by rail, road or inland waterways.
b. Death or permanent total disablement of the insured animal arising during and out of an accident to the cart/Tonga.
CLAIMS
The insured shall, upon the occurrence of any event giving rise to or likely to give rise to a claim under this policy, give immediate notice within 24 hours to the Company, and shall, within fourteen (14) days thereafter, furnish to the company fully the completed claim form, and death certificate with details certified by an official of the Department of Fisheries / MPEDA or any marine biologist, etc. All dead shrimp / prawns should be produced before the representative of the Company. Various insurance schemes for which there are no market agreements are now outlined. The coverage, rates of premium, underwriting practice, etc. may vary among the companies. The notes which follow are designed to provide an idea of the general approach adopted