Aviation Insurance

Aviation Insurance Overview:

The aviation industry is susceptible to a series of risks and threats, especially with
respect to technical operations of an aircraft, and the consequent dangers. Aviation
insurance is a specialised insurance which has been formulated to provide coverage
to the specific operations of an aircraft and other possible risks in aviation. This type
of insurance is quite different from other types of transportation insurance. The
clauses, terms, limits in aviation insurance are quite unique.
Different aviation insurance policies provide a series of options tailor-made to suit the
varied needs of each customer. The types of coverage provided are extremely
specific to each plan, and it is of utmost importance to understand these nuances
before choosing which plan to buy. There have been various instances of a customer
assuming that his/her plan has a certain coverage, only to find out that they were
never covered for that particular type of mishap. To avoid getting into such a
situation, you must consult a qualified aviation insurance expert. This insurance
professional will help you identify and differentiate between different types of aviation
insurance plans, and also clarify your doubts related to the same.
The concept of aviation insurance has gained momentum only of late. A series of
aircraft disasters (especially the mysterious disappearance of Malaysia Airlines with
over 200 passengers on board) have not only prompted more and more people to
buy aviation insurance, but it has also increased the number of claims by a huge
margin. As aircraft disasters continue and are on arise, it is being looked at as a very
risky affair to fly. This has led to a lot of fear and consequently the need for aviation
insurance.
Benefits of Aviation Insurance Policy:
 In this age when all of us are hard-pressed for time, and are required to travel (for
business or for leisure) taking a flight has become an indispensable part of our
lives. Though flying comes with a huge amount of life risks, it is unavoidable. Be it
turbulent weather, terrorist activities leading to hijacks, mysterious disappearance
of flights, auto/technical failure, or a plane crash; taking a flight is never devoid of
these life threatening dangers. As they say, better safe than sorry; a
comprehensive aviation insurance policy covers you against the aforementioned
dangers.
 In flight insurance provides coverage against damages that can happen to the
aircraft while it is mid-air (in motion). Though this is expensive, it is worth it as most
accidents happen when a plane is mid-air.
 You are protected from a series of natural weather turbulences and also man-
made calamities.
 You are duly compensated for any damages sustained which can happen after
you have boarded a flight.
Aviation Insurance Policy Covers:
 As mentioned earlier, aviation insurance offers protection against a wide array of
perils, dangers, risks and damages to policyholders. Given that aircrafts are
extremely prone to technical failures, accidents, terrorist activities, and such like,
aviation insurance is extremely crucial. The coverage provided by different aviation
insurance policies have been listed below -
In-flight coverage
This provides coverage against damages that can happen to the aircraft while it is
mid-air (in motion). Though this is expensive, it is worth it as most accidents happen
when a plane is mid-air.
Hull all risk
This coverage is ideal for flying clubs which operate small planes, private jets
belonging to celebrities/politicians/business tycoons, aircrafts used for agricultural
praying, etc. The policy covers any physical loss/damage faced by the insured plane.
It also protects the plane against total loss and disappearance.
Hull/Spares War Risk
Protection is provided to the insured plane and its spares in case of loss or damage
resulted by anti-social activities like war, invasion, riots, hostilities, martial law,
strikes, civil commotion, malicious activities and sabotage.
Loss of License
It is a mandate for every aircraft crew member to hold a valid license. A license can
be suspended on medical grounds leading to a financial loss for the crew member.
This cover takes care of the financial loss incurred. The crew member can get the
coverage in case of permanent total disablement or temporary total disablement due
to bodily injury or illness.
Spares All Risk Insurance Policy
If any loss/damage is incurred to the spares, tools, equipment and supplies of the
insured aircraft or any damages caused to a property by the aircraft, it is covered.
Aviation Personal Accident (crew member)
This is usually granted annually and protects the insured crew member against
injury, disablement or death as a result of an aircraft accident/mishap.
Companies providing Aviation Insurance:
The following companies offer aviation insurance to customers -
 New India Assurance Co. Limited
 Alliance Insurance Brokers
 AON Global India
 Farsight India Wealth Management
 Emedlife
 Aviation Insurance Policy Claim Process:
The claim process for aviation insurance is quick and hassle free. You need to
provide the following valid documents –
 Aircraft details document
 Flight details document
 Details of the crew members
 Documented proof of the accident
 Information on aircraft’s maintenance and engineering
 Documents of operational manual passenger
What is burglary insurance?
Burglary insurance is an insurance policy which covers the financial loss that you
suffer in case of a burglary or attempted burglary into your home or business
premises. Burglary is defined as an act of forceful entry into the house or business
premises with an illegal intention of theft.
Features of burglary insurance
Burglary insurance policies have the following salient features –
 They can be bought by homeowners, tenants as well as business organisations to
cover the financial loss suffered due to burglary
 A burglary insurance policy can also cover theft and robbery. That is why the plans
are also called burglary and theft insurance plans
 There are different types of burglary insurance plans available in the market
 You can avail different types of burglary insurance policies for covering different
types of assets which are exposed to the risk of theft
 A standard burglary insurance policy can be extended to cover losses suffered due
to burglaries committed during riots, strikes, fire, etc.
What is covered under burglary insurance?
Burglary insurance covers the following losses which you might face in case of a
burglary or attempted burglary –
 Damage to the home or business premises due to forceful and unlawful entry
 Loss of assets or property due to theft and burglary

Coverage under burglary insurance policies can be taken for the following types of
assets –
 Cash and valuables
 Home appliances
 Electronic gadgets
 Money in transit
 Cash stored in safe
 Stock in trade
 Business assets
 Plants and equipment used in the factory or business premises
 Jewellery, etc.
What is not covered under burglary insurance?
 Burglary insurance policies have the below-mentioned exclusions in which case the
claims are not paid –
 Loss or damage which occurs due to war, strikes, riots, etc. unless otherwise
specified
 Losses due to natural calamities
 Losses suffered when the property is under renovation
 Losses due to nuclear threats or contamination
 Loss of property because it was confiscated by the Government
 Consequential losses
 If the family members are involved in the burglary, claims would not be covered
 Precious metals and cash might be excluded unless specifically covered under the
plan
 Theft or burglary of share certificates, promissory bonds, treasury bills, etc. are not
covered
 Theft by employees or housemaids are not covered
 Burglary or theft when the premises were left unattended or when the premise was
not completely locked
 Fraudulent claims are not covered
 Theft using a duplicate key is not covered unless the key was acquired forcefully
 Burglary, when proper security was not maintained, would not be covered
Types of burglary insurance policies
Burglary insurance policies can be of different types based on the type of coverage
as well as the assets that they cover. Here are some of the commonly found burglary
insurance policies in India –
1. Stock Declaration Policy
This policy is for businesses which cannot estimate the exact value of their stock in
trade. In such cases, the highest possible value of the stock is taken to be the sum
insured so that the losses can be sufficiently covered.
2. First Loss Policy
Under this policy, a portion of the stock is insured which is likely to be burgled. This
type of policy is relevant when the total loss cannot be plausibly estimated.
3. Full Value Policy
This policy covers the asset for its full value so that in case of loss the full value can
be claimed.
4. Money in Transit Insurance
This policy covers the risk of theft or burglary on an amount of money which is in
transit. The policy is relevant for businesses where the movement of physical cash is
involved.
5. Business Premises Insurance
This policy covers the risk of burglary and theft in the place of business.
6. Dwelling Insurance
Under this policy, your residential house is covered against burglary and theft.
7. Jewellery and Valuable Policy
 This policy specifically covers precious jewellery, valuable, works of art and other
valuables against burglary.
8. Cash in Safe Policy
This burglary insurance policy covers the risk of theft of the cash which is kept in a
safe at the house or at the business premises.
Burglary v/s robbery v/s theft
While the terms ‘burglary’, ‘robbery’ and ‘theft’ are used interchangeably, their
meanings are quite different from one another. Here’s how –
1. Burglary is when there is an unlawful and forceful entry into your premises. You
might or might not be present on the premises when the burglary occurs
2. Robbery is an unlawful and forceful entry into your premises when you are present
on the premises. Your presence is important for the act to be considered a robbery in
the eyes of the law
3. Theft involves non-violent and forceful entry into the premises

Some insurance policies can cover the only burglary while others can also cover
theft and/or robbery. So, you should know how these terms differ from one another
and check whether the policy allows coverage for all three terms or for some of
them.
Premiums of burglary insurance policies
The premiums of burglary insurance plans depend on the asset covered, its value
and the expected risks. You can, however, reduce the premiums through the
following ways –
 By installing safety devices in your house or business premises which would alert
you to any unlawful activity
 By installing CCTV cameras which would help in preventing or lowering the risk of
burglary
 By fencing the premises which are being insured
 By installing security alarms which would lower the extent of loss, etc.
Things to remember when buying burglary insurance
You can buy a burglary insurance policy online by making an online application to
the insurance company which is offering the cover. Before buying the policy,
however, the following should be kept in mind –
1. Ensure that all possible assets which face a risk of theft are covered under the
burglary insurance policy
2. Compare the available policies before buying
3. Check whether the policy covers only burglary, theft or both
4. The sum insured should be sufficient enough to cover the loss that you suffer. If the
sum insured is inadequate, the claim would be settled on a proportionate basis even
if the loss is covered under the sum insured. For instance, if the value of an asset is
INR 1 lakh but you insure it for INR 80,000, if there is a loss of INR 50,000, the claim
would be paid for INR 40,000
5. The premium of burglary insurance policy can be reduced. Use the available ways to
reduce the premium so that the policy becomes affordable
 Making a claim under burglary insurance
If a burglary happens and you face a claim, here are the steps which you should take
to raise the claim and get it settled –
1. Inform the insurance company immediately of the burglary
2. Take pictures of the loss which you have suffered. These pictures would serve as
proof to help the insurance company estimate the extent of loss
3. Record all the losses which you have suffered so that they can be mentioned on the
claim form
4. The receipts of repairs and replacement of the burgled items should be kept securely
5. Record everything that happens after the burglary has occurred so that you give
documentary evidence to the insurance company if required

A burglary insurance policy proves to be a valuable addition to your insurance

portfolio as the policy compensates you for the financial loss that you suffer in case
of burglaries. So, insure your home or your office under a burglary insurance policy
and be financially secured against unlawful activities.

What is Fidelity Insurance?

Fidelity insurance or fidelity bond insurance is a business insurance product that
provides protection against business losses caused due to employee dishonesty,
theft or fraud. The policy compensates such losses to business owners within the
limitations of the policy. Some of the examples of business losses include theft of
money, theft of business inventory and using business cash for personal profit etc.
Types of Fidelity Insurance
Availing fidelity insurance is one of the parts in a business’s risk management
practice. Fidelity insurance plans are available in four types. Following are the types
of fidelity insurance plans available-
 Individual policy: Under an individual policy, coverage is limited to losses due to
fraud or dishonesty of an individual employee.
 Collective policy: Under the collective policy, coverage is provided against the
business losses caused due to fraudulent acts by a group of employees. Coverage
in this type of fidelity insurance policy will be decided based on each employee’s
responsibilities and position. 
 Blanket policy: Blanket policy covers a group of employees without the names of
the guaranteed person. Basically, this type of policy is issued to well-established
businesses.
 Floater policy: Floater policy guarantees a group of employees with one amount of
guarantee is given across the group. Minimum of five employees need to be there to
avail this cover.
Who can Avail Fidelity Insurance?
 Every business having employees to handle cash and payment processes will
require fidelity insurance cover. The following business can avail fidelity insurance
and get the benefits of policy as these businesses are more vulnerable to the risk of
employee frauds –
 Restaurants and cafes
 Retail businesses
 Businesses that require trade licenses
 A business that requires the collection of personal information from customers
What are the Features of Fidelity Insurance?
Fidelity insurance provides coverage against financial losses suffered by the
organisation due to fraudulent act employees. Following are the features of fidelity
insurance –
 The policy provides comprehensive coverage against various risks arising from fraud
and the dishonest act of an employee or group of employees such as loss of money,
property, securities or other assets, computer fraud, forgery, loss to customers etc
 Fidelity insurance offer tailor-made coverage to businesses depending on the need
and nature of work
 Fidelity insurance offers coverage with a broad definition of ‘employees’ 
 Coverage under fidelity insurance will start for the insured event on or after the date
of commencement of the policy.
 Coverage is also applicable for a year or 12 calendar months from the date of policy
expiration
 In case of death, dismissal or retirement of the employee, coverage is valid for 12
calendar months of such death, dismissal or retirement whichever of these events
occurred first.
What are the Benefits of Fidelity Insurance?
As fidelity insurance policy protects the business against losses arising due to an act
of fraud or dishonesty committed by employees, it becomes important for businesses
to buy fidelity insurance cover to have protection against such risks. Following are
the benefits offered by fidelity insurance –
 The fidelity insurance policy covers theft of funds committed by the employees
 The fidelity insurance provides coverage for loss of business assets such as
property, stock certificates or any other assets
 The fidelity insurance provides protection against loss of customer’s property caused
by dishonest acts of an employee
 The fidelity insurance protects the business from financial crises coming from a small
portion of the workforce (dishonest employees) which can affect the entire business
and other employees.
 The fidelity insurance protects the reputation of business along with ensuring
absolute transparency in supervision and accountability requirements within the
business.
 As a part of the company’s risk management strategy, it’s important and ideal for
every business to consider availing fidelity insurance. It’s always better to take
precautions to stay safe than to be sorry later! 
What is covered under Fidelity Insurance?
Fidelity insurance contract provides coverage against the losses to the insured
business which is caused by an act of fraud/theft/dishonesty of an employee or
group of employees. Following are the coverages offered under fidelity insurance –
 Theft committed by employees is covered under the policy. This includes assets
stolen and the claims made by customers when the valuables are stolen. 
 Act of forgery and defalcation of company’s money by employees
 Embezzlement, misuse of employment capacity for personal gain and any other
dishonest act by employees
The coverage offered to the insured company is limited to –
 Amount of guarantee stated against the name of any employee or against the
relevant group/category of employee in the policy schedule
 The total amount of guarantee specified in the policy
What are the Exclusions under Fidelity Insurance?
 Fidelity insurance policy does not cover the following losses –
 Losses arising out of the suppression of facts affecting the risk at the time of
effecting the policy
 More than one claims made in respect of any one employee
 If there are any changes in the conditions or circumstances of the said employment
without the consent of the company. 
 Losses arising elsewhere than in the territorial limits stated in the policy schedule
 Losses arising due to non-observance and relaxation of the system of checks and
precautions
 Consequential or indirect loss or damage which is not the direct result of insured
perils, nor does the policy cover apprehended loss or damage or contractual liability
or legal liability of any kind
 Discovered more than 12 months after the termination either of the guarantee or of
the service of the employee concerned
 Loss or damage attributable to willful acts or gross negligence on the part of the
insured, employee or any other person acting on their behalf
 Losses such as trading losses, stock-taking shortages and losses not caused by
dishonesty or fraud 
 The loss is by an act committed subsequent to an earlier act of fraud or dishonesty
which had come to the notice of the insured or supervisor or to insured’s
representative
 Any loss resulting directly or indirectly from trading in securities
 Terrorism damage
How does Fidelity Insurance Function?
 Fidelity insurance is indispensable for many businesses today. To avail the fidelity
insurance, the business should have clear records and details in place. Fidelity
insurance basically covers losses incurred due to an act of dishonesty or fraud by
employees such as forgery, identity theft, embezzlement and theft of funds/property
or cash etc. Working on fidelity bonds is quite simple. The fidelity insurance plan
functions as below – 
 A business that is seeking fidelity insurance needs to provide a detailed list of
employees and list of various departments under which business can incur a loss
due to fraud or dishonesty of an employee/employees
 Fill in the proposal form and provide every information required by the insurance
company. It’s important to disclose every detail and information to avail any hassles
later during the claim time
 Depending on the number of employees, nature of business and risk exposure, the
premium amount will be determined.
 A business owner can submit the proposal form along with other relevant documents
when the understanding of policy and premium payment is clear
 During the policy term, if any losses or damage arising due to an insured event,
insured business needs to immediately intimate the insurance company to claim the
compensation
 To initiate the claim, relevant documents along with duly filled claim form needs to be
submitted to the insurance company
 The insurance company will then conduct a survey to estimate the loss 
 In case the claim gets approved, the claim amount will be paid out to the insured
business depending on the policy limits, terms and conditions
 If the claim gets rejected, the insurance company will inform the insured business
with an appropriate reason
 If the insured business is not satisfied with the resolution, it can take up the matter
with the court of Law.
For example, let’s say the director of finance in a company has been transferring
funds from the company’s bank account to his account or utilising the company’s
funds for personal use without anyone knowing about these transactions. When this
embezzlement comes into notice, the company’s financial loss due to this fraudulent
act will come into the light. In this case, insured companies can claim coverage for
loss under fidelity insurance as soon as the embezzlement is discovered. The
insurance company will compensate for the loss after the careful audit and
investigation of the case.
Claim Process for Fidelity Insurance
The claim process for fidelity insurance is quite simple and easy. Following are some
of the easy steps to follow for fidelity insurance claims
 The insured company must immediately intimate the insurance company on the
occurrence of claim incident
 The insured company needs to take immediate disciplinary action against the
employee (based on the situation)
 The act of infidelity must be furnished with relevant proofs along with submission
claim documents and proof of loss to the insurance company
 The insurance company carries out the forensic audit
 The forensic auditor will verify and approve the claim amount (insured’s in-house and
overhead expenses are not included in the claim amount)
 If the claim is rejected, the insured company/claimant will be informed with the exact
reason for a rejection
 If the claimant is not satisfied with the resolution provided, the matter can be taken to
the court of law
Documents Required for Fidelity Insurance Claims
Following are the documents required for fidelity insurance claims
 Duly filled and signed claim form 
 Photocopy of the fidelity insurance policy document
 A detailed description of the employee’s job duties
 Private reference of the fraudulent employee
 Internal investigation report
 CCTV footage in case of theft
 Police FIR regarding the theft or embezzlement
 Auditors report estimating the quantum of loss
 Details on the date of discovery of the loss
 Statement from witnesses who can validate the loss
 Evidence of stolen property values such as receipts or invoices, if any
 Evidence of forgery or identity theft along with proof of loss
 Terminal benefits from any employee
Insurance Companies Offering Fidelity Insurance< in India
Fidelity insurance is not widely known in the Indian market. However, the product is
gaining popularity in recent years. Following are the general insurance companies
offering fidelity insurance in India –
 SBI General Insurance Company
 Bharti AXA General Insurance Company
 Liberty General Insurance Company
 HDFC ERGO General Insurance Company
 Tata AIG General Insurance Company
 Oriental Insurance Company 
 Raheja QBE General Insurance Company
 IFFCO Tokio General Insurance Company
 Engineering Insurance

Introduction

Engineering insurance refers to the insurance that provides economic safeguard

to the risks faced by the ongoing construction project, installation project, and
machines and equipment in project operation. Product categories: Depending on
the project, it can be divided into construction project all risks insurance and
installation project all risks insuranc; depending on the attribute of the object, it
can be divided into project all risks insuranc, and machinery breakdown
insurance.

Insurance Period: the same as the construction period of the project.

Functions

1. Loss compensation

Material loss: the insured project loss caused by any accidents or natural
disasters except the exclusions.

The third party liability: according to law, the insured shall assume the
compensation liability for the personal injury or property damage to the third party
in construction sites and adjacent areas caused by the accident that directly
relates to the insured project.

Exclusions: engineering design, construction technology error, construction

material quality defects, mechanical damage of machinery and equipment that
happens without external momentum...

2. Special clause

More than 40 special clauses are available on the basis of risk assessment and
payment of additional expenses, including clauses in respect of strike, riot, and
civil commotion, limited liability insurance period clause, extended liability
guarantee period clause, special fee clause, clause in respect of buildings and
tunnels in earthquake region.

Target Customers

Construction and installation projects in the process of "going out" of construction

enterprises, real estate enterprises, production and processing enterprises,
electrical power, gas and water production and supply enterprises.

Process

1. Insuring process

2. Claim settlement process

 Cattle Insurance Policy
 
The Indian Agriculture Industry is on the brink of another green revolution that makes
it more lucrative and profitable, as the total agriculture production in India is likely to
Double in next ten years that too in an organic way. HDFC ERGO offers Cattle
Insurance Policy for protection of Indian rural people from financial loss due to death
of their cattle, which is one the most valued possessions of the rural community.

The Policy covers the persons having cows, bullocks or buffaloes of either sex
certified as being in sound and perfect health and free from injury or disease by a
veterinary doctor / surgeon and who are Members (in groups) of Micro Finance
Institutions, Non Government Organisations, Government Sponsored Organisations
and such affinity groups / institutions in rural and social sector.

Features

 Death of cattle Covers the cattle insured whilst within a geographical area specified in
the policy schedule, in case of loss of life accident or diseases contracted or surgical
operation. The policy also covers death of cattle which are the subject matter of
insurance occurring outside the said geographical area in the event of drought,
epidemics and other natural calamities.

Optional Benefits

 Permanent disability Cover Covers the risk of permanent and total disablement of

cattle.

Please note that all benefits are subject to a maximum amount as stated in the
policy. These will be clearly noted in any quotation released or any policy issued.

A policy will be issued in the name of the group with a schedule of names of the
members / clients including his / her cattle details called “Insured Cattle” forming part
of the policy. The age of the calf (of Cow / Buffalo) should be more than 90 days and
lactatic animals (Cow / Buffalo) should be upto 4 th Lactation.

Premium

 The premium payable on the policy would be dependent on the benefits purchased.

Exclusions
 The policy does not cover the following:

 Malicious or wilful misconduct or neglect, over loading, unskilled treatment.

 Use of animal for purpose other than stated in the proposal form without the consent of
the Company in writing.

 Intentional acts or gross negligence

 Failure to prevent death of cattle

 Accidents occurred or diseases contracted prior to commencement of risk. Disease

contracted within 15 days from commencement of policy period.

 Transit by air or sea.

 Intentional slaughter. slaughter unless it has been directed by a veterinary doctor or a

proper governmental authority.

 Theft or clandestine sale.

 Missing of Insured animal

 Acts of terrorism, war, radioactivity and Nuclear perils

 Consequential loss

This is an illustrative list of Exclusions. For detailed list kindly refer the policy
wordings.

Documents Required

Documents required for purchasing an Insurance Policy:

 A duly filled & signed proposal form

 Certificate by veterinary doctor in the prescribed form confirming the health status and
market value of the animal

 Receipt of payment made while purchasing the animal

 Photograph of the animal

Claims Process
 Claims shall be assessed and paid on the basis of the relevant documents submitted
to the Company. The policy will be considered for payment on production of following
documents.

 Duly completed claim form.

 Death certificate from a qualified veterinary surgeon.

 Policy / Certificate.

 Ear tag.

A fully online Cattle tagging, and claims module . A complete paperless environment
in policy enrolment to claims, via integrated mobile app which is the first of its kind in
the livestock insurance market.

This content is descriptive only. Actual coverage is subject to the language of the
policies as issued.

Livestock Insurance

1. About the scheme

2. Coverage
3. Animals covered
4. Central assistance
5. Process

About the scheme

The Livestock Insurance Scheme, a centrally sponsored scheme was implemented
on a pilot basis during 2005-06 and 2006-07 of the 10th Five Year Plan and 2007-08
of the 11th Five Year Plan in 100 selected districts. The scheme was later
implemented on a regular basis from 2008-09 in 100 newly selected districts of the
country.
The scheme was later subsumed as a component titled Risk Management and
Insurance under the sub-mission on livestock development of National Livestock
Mission.
The component aims at management of risk and uncertainties by providing
protection mechanism to the farmers against any eventual loss of their animals due
to death and to demonstrate the benefit of the insurance of livestock to the people.
Coverage
The scheme is implemented in all the districts of the Country from 21.05.2014.
 Animals covered
The indigenous / crossbred milch animals, pack animals (Horses, Donkey, Mules,
Camels, Ponies and Cattle/Buffalo Male) , and Other Livestock (Goat, Sheep, Pigs,
Rabbit, Yak and Mithun etc.) are covered under the purview of this component.
Central assistance
Benefit of subsidy is to be restricted to 5 animals per beneficiary per household for
all animals except sheep, goat, pig and rabbit. In case of sheep, goat, pig and rabbit
the benefit of subsidy is to be restricted based on "Cattle Unit" and one cattle unit is
equal to 10 animals i.e a total of 50 animals. If a beneficiary has less than 5 animals /
1 Cattle Unit, s/he can also avail the benefit of subsidy.
mponent Pattern of assistance

mium rates Premium rates for one year policy in Normal areas

 Normal Areas - 3.0% NER / Hill areas / LWE Central share 25%, State share 25% and Benefic
 affected areas -3.5%, Difficult areas - 4.0 % share 50% for APL, and Central share 40%, State sh
30%, and Beneficiary share 30% for BPL / SC / ST

mium rates for three year policy in Normal Areas - NER / Hill areas / LWE affected areas

 7.5%, NER / Hill areas / LWE Central share 35%, State share 25% and Beneficiary
 affected areas - 9.0% are 40% for APL, and Central share 50%, State sh
 Difficult areas - 10.5 % 30%, and Beneficiary share 20% for BPL / SC / ST

Difficult Areas

Central share 45%, State share 25% and Benefic

share 30% for APL, and Central share 60%, State sh
30%, and Beneficiary share 10% for BPL / SC / ST
Process
An animal will be insured for its current market price. The market price of the animal
to be insured w ill be assessed jointly by the beneficiary and the insurance company
preferably in the presence of the Veterinary officer or the BDO. The minimum value
of animal should be assessed by taking Rs.3000 per liter per day yield of milk or as
per the price prevailing in the local market (declared by Government) for cow and
Rs.4000 per liter per day yield of milk or as prevailing in the local market (declared
by Government) for buffalo. The market price of pack animals (Horses, Donkey,
Mules, Camels, Ponies and Cattle/Buff. Male) and Other livestock (Goat, Sheep,
Pigs, Rabbit, Yak and Mithun) are to be assessed by negotiation jointly by owner of
animal and by insurance company in the presence of veterinarians Doctor. In case of
dispute the price fixation would be settled by the Gram Panchayat / BDO.
The animal insured will have to be properly and unique ly identified at the time of
insurance claim. The ear tagging should, therefore, be full proof as far as possible.
The traditional method of ear tagging or the recent technology of fixing microchips
could be used at the time of taking the policy. The cost of fixing the identification
mark will be borne by the Insurance Companies and responsibility of its maintenance
will lie on the concerned beneficiaries. The nature and quality of tagging materials
will be mutually agreed by the beneficiaries and the Insurance Company. The
Veterinary Practitioners may guide the beneficiaries about the need and importance
of the tags fixed for settlement of their claim so that they take proper care for
maintenance of the tags. The tag already available on animal may be utilized with
unique identity number subject to the condition that it is mutually agreed by farmer
and agency and there shall not be any dispute in settlement of claims on account of
utilization of existing tag.
While processing an insurance proposal, one photograph of the animal with the
Owner and one photograph of the animal clearly with the EAR TAG visible shall be
taken at the time of processing the insurance documentation. In case of sale of the
animal or otherwise transfer of animal from one owner to other, before expiry of the
Insurance Policy, the authority of beneficiary for the remaining period of policy will
have to be transferred to the new owner.
Only four documents would be required by insurance companies for settling the
claims viz. intimation with the Insurance Company, Insurance Policy paper, Claim
Form and Postmortem Report.  In case of claim becoming due, the payment of
insured amount should be made within 15 days positively after submission of
requisite documents. If an Insurance company fails to settle the claim within 15 days
of submission of documents, the insurance company will be liable to pay, a penalty
of 12% compound interest per annum to the beneficiary.