INTRODUCTION: In spite of all precautions, accidents do occur. Earthquakes, floods and cyclones occur frequently causing loss of lives and damage to property. Hence, it is necessary to adopt more effective techniques or devices or methods to deal with the problem ‘risk’ in modern society. Insurance is one of the important methods to deal with risk whereby it is transferred to an insurer.
INHERENT RISK: Human life and material possessions are continuously exposed to loss or damage by numerous destructive forces. There is a great deal of uncertainty in life, commerce and industry. The risk is inherent and uncertainty is a fundamental fact of life. Human beings have a strong desire for the security of their lives and possessions. This desire for security is to be satisfied by taking all precautions possible to avoid or prevent the consequences of risk.
INSURANCE CONCEPT: Insurance is a concept which provides for collection of small amounts of premium from many individuals and firms out of which losses suffered by a few are reimbursed.
INSURANCE IN INDIA: References to insurance are found in “Manu Dharma Shastra” (Code of Manu). Earliest transactions of insurance are traced to the beginning of the fourteenth century in Northern Italy. However, insurance was established in India only at the beginning of the 19
| The four subsidiary companies are :|
| The Oriental Insurance Company Limited|
New India Assurance Company Limited
National Insurance Company Limited
United India Insurance Company Limited
Besides it many pvt. has entered in this sector
In tune with the social objective of the Government soon after Nationalisation, all the insurance companies have developed packages which cater to the needs of rural India. In this process, insurance of cattle, sheep, dog, poultry Honeybee, Sericulture and other livestock is facilitated. Financial institutions have taken a policy decision that all livestock and poultry units financed by them are to be insured.
The insurance industry is opened to private players as per IRDA Act 2000 and a few private players have started insurance business in India.
POULTRY IN INDIA: The recent data of the year 2018 states that the egg production in India is 88.139 billion eggs (3rd in Egg Production) • (Approx. 75% of egg production is contributed by commercial poultry farms, remaining comes from household/backyard poultry billion and the broiler production is: 4.9 million MT (4th in Broiler Production). The growth rate of layer market is 6-7 percent per annum and broiler market is 8-10 percent per annum.
Total poultry feed production of the country stands at 24 million tonnes. The Indian poultry sector is valued at INR 1.25 lakh cr or USD 18.5 bn.
In coming years, poultry production and consumption in India is predicted to grow due to various factors such as a shift in food habits, urbanization, increasing awareness of balanced nutrition etc. The annual per capita availability of eggs and broiler meat is 71 and 4250 gms., respectively. The recommended consumption level is 180 eggs and 10.8 kg of poultry meat per head per annum. This shows the scope for further growth of the Poultry Industry. However, the poultry farmers suffered many losses due to epidemic diseases and natural calamities like cyclones, floods, earthquakes etc. At times, the magnitude of losses is so severe that the farmers find difficult to get back into farming again. That’s why the insurance would take care of the poultry farmers whenever they are exposed to the above-stated risks.
I. Scope and Features of the Scheme
‘Poultry’ refers to poultry units consisting of chicks/ hens/ cocks /ducks, Turkeys, Quails and such other domesticated birds’ reared for eggs and/or meat.
It includes (a) layer birds (b) Broilers (c) Hatchery birds (Breeding Stock).
For the insurance purpose, Exotic bird means that whose parents are of foreign breed either born in the country or abroad. A crossbred bird means one, of whose parents, is of foreign breed.
(a) All birds in the farm should be covered.
(b) The Scheme is applicable to Poultry farms which consist of minimum
number of (i) Layer birds (ii) Broilers per batch iii) Breeding birds in
Layer birds – 1 day old to 72 weeks
Broilers – 1 day old to 8 weeks
Hatchery Birds – 1 day old to 72 weeks
IV. Premium rates
Rates shall be fixed per bird for each of the following groups according to each market’s conditions, mortality experience and facility of prompt veterinary services:
(i) Layer birds
1 day old to 20 weeks
20 weeks to 72 weeks
1 day old to 8 weeks per batch or per annum
1 day old to 72 weeks
(Extra premium to be charged for every additional increase than the maximum value fixed for the bird.)
V. Sum Insured per bird
The market value of birds varies from breed to breed, from area to area and from time to time. Guideline valuation chart should be mapped out to be approved and attached for fixing the maximum sum insured per bird and to be the base of settling claims afterwards either for the Layers, for the Broilers or for the Hatchery Birds.
VI. Insurance Coverage
The policy shall provide indemnity against the death of birds due to the accident (including Fire, Lightning, Flood, Cyclone, Famine, Strike and Riot) or diseases contracted or occurring during the period of insurance, subject to the following exclusions:
- Malicious/ wilful injury, neglect.
- Transit by any mode of transport.
- Improper management (including overcrowding)
- Undergrowth, cannibalism, the actions of predators like preying birds and carnivorous animals
- Theft and clandestine sale of birds.
- Intentional slaughter of the birds except in cases where destruction is necessary to terminate incurable suffering on humane consideration on the basis of certificate issued by a qualified veterinary surgeon or in cases where destruction is resorted to by order of lawfully constituted authority.
- A consequential loss however caused.
- Permanent and partial disablement of any nature.
- Loss of production
- Loss due to: (a) Fowl Pox, Infectious Bronchitis and other specifically named diseases. These diseases are covered by the policy only if the birds are successfully inoculated against these diseases, if preventive and curative measures are taken from time to time, and if the necessary veterinary certificates to that effect are supplied to the Company. (b) Malnutrition (c) Undergrowth (d) Cannibalism (e) Loss due to huddling and/or piling of birds. (f) Avian leucosis complex (A.L.C.)
- Salmonellas covered subject to submission of a clean certificate from competent. Authorities immediately after testing.
- War, invasion, the act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection mutiny, tumult, military or usurped power or any consequences thereof or attempt thereat.
- Any accident, loss, destruction, damage or, legal liability directly or indirectly caused by or contributed to by or arising from nuclear weapons.
VII. Veterinary Examination
(a) A Veterinary Certificate from a qualified Veterinarian showing the
following details is necessary for acceptance of risk:
- Type of Birds
- Age of Birds
- Details regarding housing, light, ventilation, temperature, insulation, floor, feeds, water, sanitation etc.
- Vaccination and inoculation particulars.
- Condition of health
- Type and source of feed
- Details of equipment
- Details of management/staff
- Veterinary assistance
- Mortality rate with reasons for the last 2 or 3 years
(b) The Insurer reserves the right to maintain his own check and depute.
- All the birds would be covered on a flock basis. No identification is necessary
- Insured must maintain at their own cost lot-wise records to show inter alia (a) Mortality (b) Culling (c) Feed consumption (d) Incidence of diseases (e) Vaccination and medication (f) Purchases and sales (g) Daily Stock Register.
IX. Important Policy conditions:
- The Poultry farm should have a veterinary facility.
- The cages if used must be maintained properly.
- Proper housekeeping.
- In the event of an outbreak, all healthy birds should be segregated and all precautions should be taken to arrest the spreading of the disease, under advice to the Insurance Company immediately.
- Proper balanced standard feed and clean water should be supplied to birds.
- Proper flock record should be maintained on a day to day basis.
- Transfer of interest/ ownership is not allowed.
- In case of death/ outbreak of epidemic immediate notice within twelve hours should ‘be given to Company. All birds ‘should be segregated and produced to the representative of the Company or to any person authorised by the Company.
- Debeaking and Deworming should be carried out regularly and record to that effect should be maintained.
X. Blanket Policies
Blanket policies would be issued, subject to the weekly declaration in favour of clients who maintain regular records of each unit/ lot by which group of birds could be identified and in which all illness suffered, treatment provided and vaccinations carried out are recorded in the normal course of business. Additional premium at an agreed rate will be charged on pro-rata basis on receipt of declarations for the new stock, subject to Veterinarian’s Certificate.
XI. Procedure for claims settlement
(a) Admissibility of the claim: Claim under the policy would be admissible only if the mortality in the Flock exceeds the limits given below: (for example)Weeks Mortality
Broilers: 1 day old to 8 weeks 5% of the population in each lot
Layers: 1day old to 8 weeks 5% of the population in each lot 9 weeks to 72 weeks 3% of the population in each lot Compensation towards loss of the birds will be made only for the death of birds exceeding the mortality percentage given above.
(b) Liability of the Company: The Insured will be indemnified for 100% of the value of the bird at the time of death as per the valuation table is given as guidelines.
XII. Claim procedure
In the event of a death of birds, immediate intimation should be given to the Company and the Insurer should be supplied with the following documents and required information:
- Duly completed claim form
- Death Certificate from a Veterinarian.
- Post mortem report if required by the Company.
No salvage will be deducted from claim.
XIV. Housing and Equipment’s
A separate fire policy may be considered to grant cover for housing and equipments.