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INSTRUCTIONS TO TENDERERS 1. Haryana Livestock Development Board invites sealed tender from "Public Sector Insurance Companies" for the rates of premium of insurance of livestock in Haryana. 2. Tender must be enclosed in a properly sealed envelope addressed to the Managing Director, Haryana Livestock Development Board, Pashudhan Bhawan, Sector-2, Panchkula by designation and not by name. The tender must be superscribed "Quotation for the Insurance of Livestock" and must reach the O/o Managing Director, Haryana Livestock Development Board before 3.00 P.M. on 29.05.2012 3. In the event of the tender, being submitted by a firm it must be signed separately by each member thereof, or in the event of the absence of any partner it must be signed on his behalf by a person holding a power of attorney authorizing him to do so or in the case of a company the tender should be executed in the manner laid down in the said company's articles of Association. The signatures on the tender should be deemed to be authorized signatures. 4. All the columns of the tender form shall be duly, properly and exhaustively filled in. The rates and units shall not be overwritten. Tender shall always be both in the figures and words. The words "No tender" should be written across any or all of the items in the Schedule for which a tenderer does not wish to tender. 5. Any omission in filling the columns of "Units" and "rates" shall altogether debar a quotation form being considered. 6. 7. All corrections must be signed by the tenderers. The Managing Director, Haryana Livestock Development Board will have the right of rejection of all or any of the tender, without assigning any reason. 8. No tender will be considered unless and until all the documents are properly signed.

2 9. The work allotment amongst different tenderers, if need be, would be at the sole discretion of the Managing Director, Haryana Livestock Development Board, Pashudhan Bhawan, Sector 2, Panchkula. 10. In the event of tender being accepted the tender would be converted into a contract, which will be governed by the conditions laid down in the tender document with these instructions. 11. 12. The Committee reserves the rights for opening of bids and negotiation. Every tenderer will apply tender in sealed envelope containing envelope of financial bid (duly sealed) and the bigger envelope having super-subscribed detail of the tender. Read and accepted Signatures of the Tenderers I/We hereby quote the rates of premium to insure the livestock specified in the under-written schedule in the manner in which and with the time specified as set forth in the conditions of contract at the rates given in the schedule given below.

The conditions will be binding upon me/us in the event of the acceptance of my/our tender.


Sr. No. General description of livestock Tender Rate with and VAT/service without Insurance charges if Agents' commission for any one year, two year and three year 2 3 4 5 6 i Cattle ii Buff with commission without commission with commission without commission 1 year 2 year 3 year

iii Heifer (Cattle and Buff) without commission iv Sheep Units (20+1) without commission v Pig Unit (3+1) without commission Dated the day of . 200 Signature . Address .. N.B. : please do not forget to fill in all above columns.

3 TENDER DOCUMENT Livestock Insurance Scheme(s) in the State: The Department of Animal Husbandry & Dairying, Haryana, in General will follow the instructions issued by Govt. Of India regarding the implementation of Livestock Insurance scheme ( the copy enclosed). Master policy of Livestock Insurance would be required from the tenderers. The Livestock Insurance scheme available during 2012-13 in the State would be as under:a) Livestock Insurance Scheme funded by Govt. of India in 15 Districts (Bhiwani, Faridabad, Fatehabad, Hisar, Jhajjar, Jind, Kaithal, Karnal, Kurukshetra, Mewat, Mohindergarh, Panipat, Rohtak, Sirsa & Sonepat) with sharing of cost of insurance premium pattern 50% GOI : 25% State : 25% Owner b) Livestock Insurance Scheme (SCSP) applicable through out the state for the insurance of the Livestock wherein 100% Cost of insurance premium will be borne by State Govt. For milch animals only sharing will be 50% GOI & 50% SCSP c) Livestock Insurance Scheme in the districts other than GOI districts (Bhiwani, Faridabad, Fatehabad, Hisar, Jhajjar, Jind, Kaithal, Karnal, Kurukshetra, Mewat, Mohindergarh, Panipat, Rohtak, Sirsa & Sonepat) with sharing of cost of insurance premium pattern 75% State : 25% owner. 1. Insurance Agent Commission: There will be no insurance agent commission payable in schemes no. b & c except milch animals which are completely funded by State Govt. The facility of insurance agent commission in the GOI scheme will remain as such. 2. Animals to be covered under the scheme: i) During the 1st year of the scheme of Livestock Insurance (SCSP) the following category of livestock will be insured:Milch animals Crossbred heifers (Cow) Buffalo heifers Sheep & Piggery units purchased during the year ii) In other Livestock Insurance scheme only milch animals as per guidelines of Govt. of India. 3. Determinations of market price of animals: i) Species Buffalo Livestock Insurance Scheme (SCSP) Age Minimum Estimated Production 1500 lts./lactation 1000 lts./lactation 1200 lts./lactation 800 lts./lactation Market valuation Rs. 20,000 30,000 Rs. 15,000 16,000 Rs. 10,000 20,000 Rs. 8,000 10,000 Rs. 5000/-

3-12 years 3-12 years Cow 2-10 years 2-10 years Crossbred female 12-32 months cows/ heifers

4 Buffaloes female 1 to 2.5 years calves / heifers Buffaloes / He 3-12 years Buffaloes / Camel Sheep unit (20+1) 1-7 years Piggery unit (3+1) 1-7 years Exotic animals Desi animals Rs. 5,000 10,000 Rs. 10,000 15,000 Rs. 3000/- for female & Rs. 4000 for male. Rs. 4000 for female & Rs. 5000 for male Rs. 2000 for female & Rs. 3000 for male


Other Livestock Insurance. a. Buffalo ------- Rs. 40,000 to 50,000 b. Cow ---------- Rs. 30,000 to 40,000 c. In case of prized animals, the prices may go higher as assessed by the special committee to a maximum of Rs. 70000/-.

4. Payment of Honorarium to vety. practitioners:


No honorarium for issuing the animal health certificate and Post Mortem Certificate. (Including conducting of Post Mortem) will be payable to vety. surgeons in the State for scheme other than Govt. of India Livestock Insurance Scheme wherein Honorarium is payable in scheme.

Other term and conditions: (i) The specimen of Health-cum- evaluation certificate discussed and finalized will be followed (copy attached). (ii) Joint efforts for arranging insurance meets, at least two in each block per annum, for which insurance companies would be requested to share the expenditure by making provision of Rs. 5000/- per block similar to the provision as made by the State Government. (iii) Claim papers in advance & in sufficient number will be placed with the Deputy Director (AH) of the District by the Insurance Company. The payment of the insured amount in case of claim shall be made within 15 days after submission of complete claim papers. (iv) Cost of tagging and commission to insurance agents will be paid by the Insurance Company. (v) Insurance cover will start from the date of insurance / premium debited to the account of the company. (vi) Policy document in principle will be the agreement between the farmer & the company. (vii) Amount in advance to the extent of two months total insurance premium expected will be deposited with the insurance company for smooth implementation of the Scheme. Alternatively tenderers would be allowed to debit the amount of insurance premium for the insurances carried out to the account of the department.

5 (viii) Necessary provision in the policy in respect of change of ownership of the animal will be made by the Insurance Company. Insurance cover will remain as such for the period. 5. Rates to be quoted: Companies will quote the rates of insurance premium for 1 to 3 years with and without 15% commission payable to insurance agent. Also quote the VAT/Service charge if any. GOVERNMENT OF INDIA

The Livestock Insurance Scheme, a centrally sponsored scheme, is being implemented on a pilot basis during 2005-06 and 2006-07 of the 10th Five Year Plan in 100 selected districts. Under the scheme, the crossbred and high yielding cattle and buffaloes are being insured at maximum of their current market price. The premium of the insurance is subsidized to the tune of 50%. The entire cost of the subsidy is being borne by the Central Government. The benefit of subsidy is being provided to a maximum of 2 animals per beneficiary for a policy of maximum of three years. The scheme is being implemented in all states except Goa through the State Livestock Development Boards of respective states. The scheme will be extended in 11th Five Year Plan covering entire country and more species of livestock depending on its performance during the pilot period. The Livestock Insurance Scheme has been formulated with the twin objective of providing protection mechanism to the farmers and cattle rearers against any eventual loss of their animals due to death and to demonstrate the benefit of the insurance of livestock to the people and popularize it with the ultimate goal of attaining qualitative improvement in livestock and their products.

Guidelines for Implementation of Livestock Insurance Scheme

Livestock Sector is an important sector of national economy, especially for the rural areas. The supplementary income derived from rearing of livestock is a great source of support to the farmers facing uncertainties of crop production, apart from providing sustenance to poor and landless farmers. 2. For promotion of the livestock sector, it is important that along with

providing more effective measures for disease control and improvement of genetic quality of animals, a mechanism of assured protection to the farmers and cattle rearers is required against eventual losses of such animals. In this direction, the Government of India introduced a Centrally Sponsored Scheme (CSS) on Livestock Insurance on pilot basis during 2005-06 & 2006-07 in 100 selected districts of the country. For the year

6 2007-08, the scheme continued in the same format in the same 100 districts. A full fledged scheme on Livestock Insurance, which was approved on 20.11.2008, is being implemented in the 100 newly selected districts on regular basis. The Government has now extended the scheme in 300 selected districts. The Board guidelines, to be followed by the States for implementing the scheme are detailed below: Implementing Agency 3. Department of Animal Husbandry, Dairying & Fisheries is implementing

the Centrally Sponsored Scheme of National Project for Cattle and Buffalo Breeding (NPCBB) with the objective of bringing about genetic up-gradation of cattle and buffaloes by artificial insemination as well as acquisition of proven indigenous animals. NPCBB is implemented through State Implementing Agencies (SIAs) like State Livestock Development Boards. In order to bring about synergy between NPCBB and Livestock Insurance, the latter scheme is also be implemented through the SIAs. Almost all the States have opted for NPCBB. In States which are not implementing NPCBB or where there are no SIAs, the livestock insurance scheme will be implemented through the State Animal Husbandry Departments. Executive Authority 4. The Chief Executive Officer of the State Livestock Development Board is

also the executive authority for this scheme. In those States where no such Boards are in place, the Director, Department of Animal Husbandry is the Executive Authority of the scheme. The CEO will have to get the scheme implemented in various districts through the senior most officer of the Animal Husbandry Department in the district; the necessary instructions for this purpose will have to be issued by the State Government. The Central funds for premium subsidy, payment of honorarium to the Veterinary Practitioners, awareness creation through Panchayats etc. will be placed with the S.I.A. As Executive Authority of the scheme, the Chief Executive Officers will be

responsible for execution, and monitoring of the scheme. The main functions of the CEO will be: (i) Managing the Central funds carefully and in accordance with instructions issued by the Department of Animal Husbandry, Dairying and Fisheries, Government of India. Calling quotations from the insurance companies for implementing the scheme, carrying out negotiations with them and selecting suitable company (companies). Signing the contract with the selected insurance company/companies. Payment of subsidy premium to the Insurance Company (including advance, if any and its subsequent adjustment). Preparing district wise list of veterinary practitioners (Government /Private) and providing the same to the insurance company and also to concerned Panchayati Raj bodies.


(iii) (iv)


7 (vi) Creating awareness among the general public as well as the officials whose services may be required for implementation of the scheme. Carrying out field inspections and also facilitating field inspections by Central teams.


(viii) Release of funds to the District Officers in charge of the Department of Animal Husbandry for payment of honorarium to the Veterinary Practitioners. (ix) Regular monitoring and preparation of reports for submission to the Central/State Governments. Displaying village wise list of livestock owners who have insured their animals during the last Financial year along with list of claimant and status of their claims during the last quarter at concerned Gram Panchayat office. Such other functions necessarily required for efficient implementation of the scheme. The Principal Secretary/Secretary in-charge Animal Husbandry of the State Governments/Director of State Animal Husbandry Department will ensure availability of sufficient infrastructure in terms of manpower and other logistic support to the CEO/District level officer, needed for effective implementation of the scheme. (The exact name, designation, address of CEO/District Officer in-charge for Insurance work will be made available to Central Government and same will be prominently displayed on important places within the district and especially in the rural areas of the district. Any change in the name and designation of CEO will also be properly communicated to all concerned.) For effective implementation and monitoring of the scheme, if States feel necessity, a district committee could be formed suitably involving the officers/organizations having interest in the field of Animal Husbandry. The Dairy Cooperative Societies, if interested, could also be involved and given responsibility of implementing the scheme wherever possible. Districts in which the scheme will be implemented 5. The scheme is to be implemented in 300 selected districts of the



country. The list of districts selected for this purpose is given in Annexure-I. The scheme is to be implemented in these districts only. Selection of Insurance Companies 6. In order to get the maximum benefit in terms of competitive premium

rates, easier procedures of issue of policy and settlement of claims, Chief Executive Officer will be empowered to decide upon the Insurance company(s) and the terms and conditions. While selecting Insurance Company, besides premium rates offered, their capacity to provide services, terms and conditions and service efficiency should also be taken into account. The CEO will invite quotations in writing from those public and private general insurance companies having a fairly wide network in the State or a considerable part of the State. The CEO should select the Insurance Company/ Companies after negotiating with the insurance companies for successful and efficient

8 implementation of the scheme and popularizing the scheme amongst the livestock owners. If any Insurance Company is offering cover for any type of disability in addition to death of the insured animal, such offer could be considered, however, no subsidy in the premium for such additional risk coverage will be provided. The entire cost of premium on account of the risk coverage other than death of the animal has to be borne by the beneficiaries. However, if any additional risk covers is offered as a package along with death cover and the premium rate is not exceeding the maximum limit of 4.5% for annual policies and 12% for three year policies, such offer could be accepted and subsidy could be provided. As mentioned above, the CEO has to ensure that the premium rate agreed to is competitive. Under no circumstances, the rate of premium should exceed 4.5% for annual policies and 12% for three year policies. Normally, a single insurance company should be entrusted for insurance with the work in a district. However, for the purposes of encouraging competition and popularizing the scheme more than one insurance company may be allowed to operate in a district, if other terms and conditions are remaining same. Default in settlement of claim or any types of deficiency in services on part of Insurance Companies could be brought to the notice of the Insurance Regulatory and Development Authority which is a nodal authority in the country in this regard. The Service Tax cannot be paid by Central Government, but by the entity, that is liable. Involvement of Veterinary practitioners 7. The active involvement of the veterinary practitioners at the village level is

required for the successful implementation of the scheme. They are to be associated with the work of identification and examination of the animals to be covered under the scheme, determination of their market price, tagging of the insured animals and finally issuing Postmortem Report as and when a claim is made. Besides, being in touch with the farmers and cattle-rearers, they may also help in promoting and popularizing the scheme. Only the Veterinary practitioners registered with the Veterinary Council of India, may be involved. A list of such veterinary practitioners will be prepared for every district with the help of district officer of the Department of Animal Husbandry and it will be made available to the insurance company selected for the district as well as to the concerned Panchayati Raj bodies. Commencement of Insurance policy cover and adjustment of premium subsidy 8. In order to generate confidence among the cattle owners about the

efficacy of the scheme, it is important that the policy cover should take effect once the basic formalities like identification of animal, its examination by the veterinary practitioner, assessment of its value and its tagging along with payment of 50% of the premium to the insurance company or its agent by the cattle owner are completed. The selected insurance company will have to agree to this. However, it is possible that the insurance company may point out a provision in the Insurance Act that insurance cover can take effect only after the whole premium is paid in advance. In order to take care of

9 this problem, there could be an arrangement by which certain amount is paid in advance to the insurance company directly by the CEO. This amount should not

exceed 50% of the premium of the number of animals expected to be insured in a period of 3 months. The insurance company, on its part, should issue instructions to their branches that as and when 50% of the premium is paid by the cattle owner, they should issue the policy by suitably adjusting the balance 50% from this advance. The insurance company should prepare monthly statements of the policies issued indicating the assessed value of each animal and the Government share for each district duly countersigned by the district officer of the Animal Husbandry Department and submit to the CEO so that, that much amount can be recouped to the insurance company by the CEO. Target of getting the number of animals insured in a three months period for payment of advance to the Insurance Company should be on realistic basis and recouping of the advance fund should be on the basis of subsequent progress made by the concerned insurance Company. Animals to be covered under the scheme and selection of beneficiaries 9. The indigenous/crossbred milch cattle and buffaloes will be under the

purview of the scheme. Milch cattle/buffalo will include both in-milk and dry as well as pregnant animal, which have already calved once. Benefit of subsidy is to be restrived to two animals per beneficiary per household. For this purpose, household will be defined on the same lines as adopted under National Rural Employment Guarantee ACT (NREGA). Efforts will be made to 8insure the milch animals for at least three years rather than one year. This is administratively convenient and rates will also be significantly reduced. However, as evident from the past experiences, farmers were eager to go for one year policy rather than three year policy as the payment of premium amount for one year was comparatively less than the premium amount for three years. Hence, keeping this in view, if a farmer desires to have a policy for a period less than three years that could also be provided and subsidy on premium will be provided for insuring same animals again in the future years of implementation of the scheme. Special efforts will be made to associate and involve the registered milk societies/unions for insuring the milch animals belonging to the members of these societies/unions as a group. The insurance agents will also be persuaded to give some further concessions to these societies/unions with respect to rate of premium as the work of their agents will be reduced otherwise. The Department of Animal Husbandry, Dairying & Fisheries is continuing a scheme called Central Herd Registration Scheme (CHRS) for registration of elite cows and buffalo breeds of National importance and provides incentives for rearing elite cows and male calves. Four CHRS units have been established in different breeding tracts of the country. Under these, 103 milk recording centres have been set up. The animals, which are covered under CHRS, can also be insured.

10 Field performance recording under the NPCBB for identification of elite animals may also be integrated with insurance. The Village Panchayats and the Panchayat Raj Institutions will also be involve in the identification of animals to be insured, promotion of the scheme and providing assistance for better implementation of the scheme. Determination of market price of the animal 10. An animal will be insured for its current market price. The market price of

the animal to be insured will be assessed jointly by the beneficiary, authorized veterinary practitioner and the insurance agent. However, if the market value of an animal is expected to change during the period of insurance, the insurance may be done for the lower value to avoid moral hazard.

Identification of insured animal 11. The animal insured will have to be properly and uniquely identified at the

time of insurance claim. The ear tagging should, therefore, be fool 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. Change of owner during the validity period of insurance 12. 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. The modalities for transfer of livestock policy and fees and sale deed etc required for transfer, should be decided while entering into contract with the insurance company. Settlement of Claims 13. The method of settlement of claim should be very simple and expeditious

to avoid unnecessary hardship to the insured. While entering into contract with the insurance company, the procedure to be adopted/documents needed for settlement of claim should be clearly spelt out. Only four documents would be required by insurance companies for settling the claims viz. FIR with the Insurance Company, Insurance Policy, Claim form and Postmortem Report. All documents/forms for insuring as well as settling the calims should be made available by the insurance agency in local language and English language. In case of claim becoming due, the payment of insured amount should be made within 15 days positively after submission of requisite documents.

11 While insuring the animal, CEOs must ensure that clear cut procedures are put in place for settlement of claims and the required documents are listed and the same is made available to concerned beneficiaries along with the policy documents. The beneficiary should get full payment of the sum insured in case of death of animals. In case, there are delays in settling a claim or the claim is rejected, it must be fully justified by the concerned insurance agency to the claimant under intimation to SIA. Provisions to these effects must be incorporated in the MOU with the insurance agencies. Effective monitoring of the scheme 14. In order to ensure full impact of the scheme, there is a need of strict

monitoring at different stages. The monitoring should be in terms of financial releases, number of animals insured and type of insurance. Monitoring at the Central and State levels is extremely important. CEO will be required to make special efforts for effective monitoring. Secretary in-charge Animal Husbandry in State Government/Director of

State Animal Husbandry will take periodic review of the implementation of the scheme. All Insurance Agencies will submit State-wise quarterly progress report for the policies in operation to Department of Animal Husbandry, Dairying and Fisheries (DADF) in the format given below by 15th of the next quarter. State No. of animals Total cases of Total cases of Amount insured claims made claims settled premium received Lakh) of Amount of claim paid (Rs. Lakh) (Rs.

During Upto During Upto During Upto During Upto During Upto last last last last last last last last last last quarter quarter quarter quarter quarter quarter quarter quarter quarter quarter












In addition, they will also submit State-wise information on Claim ratios for the animals insured during a financial year (FY) latest by the 15th of April of the following FY after expiry of the said policies. For instance, for animals insured for annual policies during 2008-09, information on claim ratios needs to be supplied to DADF by 15th April, 2010. Similarly, for animals insured for three year policies during 2008-09, information on claim ratios is required to be furnished to DADF by 15th April, 2012. The format for furnishing information on claim ratios is given below: State For annual policies FY Premium Claim rate* ratio (2) (3) (4) For three year policies FY Premium Claim rate ratio (5) (6) (7)


12 * including Service Tax

Payment of honorarium to the veterinary practitioners 15. The involvement of veterinary officer in the scheme is from beginning to

end. His active interest and support is essential for success of the scheme. In view of this it is essential to provide some incentive to the veterinary practitioners to motivate them to carry out these activities wholeheartedly. It has been decided to pay an honorarium of Rs.50/- per animal at the stage of insuring the animal and Rs. 100/- per animal at the stage of issuing post-mortem certificate (including conducting postmortem) in case of any insurance claim. Central Government will provide the amount needed for payment of honorarium to the SIAs. The CEOs should ensure that payment is made to Veterinary Practitioners at end of each quarter for the animals insured and veterinary certificates issued by them in that quarter. Publicity 16. The scheme has been in operation since 2005-06 and since many of the beneficiaries were able to purchase new animals after the death of their animals, there seems to be good demand for the scheme indicating its popularity. However, it has been felt that the onus of making the sachem more popular lies with the insurance agency. The expenditure on publicity, therefore, needs to me minimized. Efforts should be made to involve dairy cooperative societies and other agencies that have direct contact with milk producers in different ways e.g. Livestock Inspectors, Gau-Mitras, traders of milk and milk products, etc. The Panchayati Raj institutions will be involved in publicity. The task of dissemination information on the scheme and inviting farmers to offer their animals for identification for insurance will be entrusted to the Intermediate Panhayats. For this purpose the CEOs are empowered to provide one time assistance not exceeding Rs. 10,000/- for each intermediate Panchayat (in both cast and in the form of publicity material). Commission to Insurance Agents 17. The active and dedicated involvement of insurance agent is most essential for efficient implementation of the scheme. The insurance company should be persuaded to pay at least 15% of the premium amount to the agent out of their premium income. While en tering into contract with the Insurance agency, this has to be ensured by the implementing agency. *****