15. Cattle & Livestock_.pptx

cattle insurance

1. Cattle & Livestock Insurance 1

2. Contents Cattle & Livestock insurance: applicability and type of animals covered The rationale and Market potential Cattle & Livestock Insurance at IFFCO TOKIO :The journey so far and Notable achievements The Product and Coverage options How Sum Insured to be determined? Premium Benefits/USP Who are our potential clients? Challenges Business Processes Approval/Screening/Policy Creation/Claims Approval: Approval Format Policy creation (CRM Demo) Screening of animals for health and disease Claims Animal Identification mechanism at IFFCO TOKIO Tagging process video demonstration(PU and RFID Tags) Photography guidelines: How to take tagging and claim photographs Dos and Don’ts Examples Why all or none Tagging position / Where to apply the tag (PU & RFID) Fraudulent practices : Tagging of Sick/injured animals , Double dipping , manipulation of tag, swiping of insurance cover at retagging etc. Cases of extreme adverse selection Fraudulent claims Claim Process Claim Documents FAQs 2

3. Cattle & Livestock insurance Applicability The Cattle and livestock insurance policy is applicable to various indigenous & exotic cattle/livestock owned by individuals, various financial institutions , dairy farms, cooperatives and cooperative dairies etc. 3

4. Type of animals covered Various animals which the policy covers are Milch cows/buffaloes Calves/heifers Stud bulls and bullocks (castrated bulls/male buffaloes) – indigenous/cross-breed/exotic. Pig, camel, Horse, Mule, Donkey, Yak etc . Exotic animals – whose both parents are of foreign breed. Indigenous animals – whose both parents are of Indian breed. Cross breed – one of whose parents is of foreign breed. 4

5. The Rationale Statutory obligations, Mission compliance and Business Obligation Statutory requirements: Rural and social sector obligations Fulfils IFFCO’s objective: Developments of cooperatives and rural farmers Cooperative Bank’s have a large portfolio of cattle/livestock loans, thus to become an attractive insurance partner for Cooperative banks Better positioned than other category of MI products because of comparatively better premium ticket size A potential market India is world’s largest milk producer and has the largest cattle population in the world Only 6% cattle are insured. Estimated market potential is of around 1600 crores . Social obligation Livestock still remains as a second source of livelihood with a huge population: It is well known to all how livestock /dairy has shaped the rural economy in Gujarat Risk mitigation of this important asset is important 5

6. Cattle & Livestock Insurance at IFFCO TOKIO :The journey s o f ar 6

7. Cattle & Livestock Insurance at IFFCO TOKIO: Few notable achievements Successfully implemented Centrally Sponsored Livestock Insurance Scheme in Odisha Rajasthan Andhra Pradesh Gujarat In 2009 IFFCO TOKIO got an international recognition through ILO’s Micro Insurance Innovation Facility for its RFID project Piloted in Gujarat, Punjab, Rajasthan, Maharashtra, Tamil Nadu and Odisha Covered 25,000 animals in this pilot 7

8. Product and Coverage options Also covers Pig, camel, Horse, Mule, Donkey, Yak etc on case to case basis The product is a full benefit product Mainly three product categories PDM: Max SI 70K ICL: Where SI is more than 70K LDP: Govt. sponsored schemes Animals covered Age group Milch cows 2 years (or age at 1st Calving) to 10 years. Milch Buffaloes 3 years (or age at 1st Calving) to 12 years. Stud Bulls 2 years(or earlier i.e. age at sexual maturity) to 8 years Bullocks(Castrated bulls/ Male 2 years to 12 years 8

9. Product and Coverage options INCLUSIONS Provides comprehensive cover to livestock against death due to – Diseases Accidents Natural calamities Strike, Riots, & terrorism Permanent Total Disability (PTD)*** : Means loss of milk yielding capacity due to disease or failure to conceive. Coverage is available at additional cost. EXCLUSIONS Claim arising due to disease contracted within 15 days from risk date Claims received without intact Ear tag Intentional slaughter of the animal and malicious damage Missing, Theft and/or clandestine sale of the insured animal Partial Disablement of any type, whether temporary or permanent War , nuclear material or weapons. Consequential loss of whatsoever nature 9

10. How S um Insured to be determined? General rule of thumb for assessing the market value Cow=Present milk yield X INR Rs . 3000 Buffalo=Present milk yield X INR Rs . 4000 For Sum Insured, the Veterinary health certificate indicating market value of the cattle will be the most authentic document. Sum Insured should not exceed market value 10

11. Premium Premium rates depend on various factors such as breed, age, geography, management conditions, past claims/mortality history. It can also vary depending upon the modalities adopted for the business processes. The general range is around 3% to 8% of Sum Insured for annual policy 11

12. Mostly it is an “Agreed Value” policy The full sum insured is settled at the time of claim Claim settlement ratio is more than 99% 12

13. Who are our Potential Prospects for Cattle/Livestock insurance? Banks financing cattle/livestock loans Other financial institutions such as NBFCs, MFIs funding for cattle/livestock Smallholder and large commercial dairy farms Dairy processing companies, Milk Unions and Dairy cooperative societies Agriculture and Dairy extension service providers NGOs and other development organizations into livestock development State Animal Husbandry Department and State Livestock Development Board ( Known with various names in different states) 13

14. Challenges 14

15. Business Processes 15

16. Business Processes IFFCO TOKIO is also flexible in designing/customizing the business processes as per the requirement of customers with mutual consent. 16

17. Working Synergy is must for smooth business 17

18. Our thrust areas 18

19. Screening of Animals for Health and Disease 19

20. Used RFID micro chips to establish the identity of the insured animal. A RFID micro chip contains an unique identification number. This is implanted subcutaneously behind the auricular (ear) area with the help of a syringe for establishing identity of the insured animal. This technology was proved to be useful in preventing fraudulent practices Since the RFID capsule is inserted beneath the skin of the animal, the risk of it falling off or being removed is mitigated. The RFID tagging process is considered less painful than plastic tags for the animal. 20

21. Tagging process (Videos) Tagging with Polyurethane tags Tagging process with RFID tags 21

22. How to take Tagging and Claim photographs Minimum two Photographs of the tagged animal to be taken One with clearly visible tag number Other with full body photograph of tagged animal (Should highlight special marks if any) In case of Re-tagging it has to be ensured that the re-tagged animal is the same insured animal The claim photographs should also follow the same pattern 22

23. Dos and Don’ts Animals proposed for insurance should be marketable Preferably go for all or none. Apply the ear tag firmly at specified area of the ear Already tagged animals should also qualify the specifications Never tag a sick or insured animal No double dipping is allowed Don’t go for animals already with pierced ears Don't accept animals wearing tags in areas other than specified 23

24. FAQs Can we insure livestock other than cattle and buffalo? Can we cover Horses and camels? Is insurance cover available for bullock? Sum Insured and age related queries Maximum Sum Insurd , Mimium Sum Insured, Maximum age, Minimum age Can we engage services of veterinarians other than regular service providers ? Animal is injured. Whether proposal will be declined? Whether partial disablement is covered ? Whether cessation of milk yield is covered in the policy? If any claim is payable in case the insured animal dies due to poisoning? When do I need to intimate a claim? Where do I intimate a claim ? When will the risk cover start ? What are the documents required to file a claim? 24

25. HAPPY SELLING 25