Central Government has got another proposal from Agriculture Ministry to launch a new insurance scheme, this time for milch cow and buffaloes. The proposal has been made with an objective of creating a protection mechanism for farmers and cattle rearers against any loss of their livestock during natural disaster.
Under the new scheme, the farmers will have to pay a very low premium to avail the insurance cover. Agriculture Ministry has proposed a premium of just 1% of the sum insured under the new scheme. The ministry has proposed that the additional premium may be paid by the center & state governments and milk producers associations. The premium contribution by these bodies will be worked out after consultation.
Under the current schemes, the farmers are paying high premium anywhere between 4% to 6% of the sum insured for the livestock insurance.
The decision to launch the new insurance scheme has been made during a meeting between different stakeholders including representatives from the insurance companies. The full details of the scheme is likely to be announced shortly by the Ministry.
The scheme, which will soon be placed before the cabinet will cover milch cows and buffaloes against the loss of their livestock during natural disasters such as floods, landslides, earthquakes and droughts.
The low premium insurance scheme is expected to encourage farmers to go for the insurance cover. If the scheme is approved and able to roll out, it will provide robust protective mechanism to millions of small and marginal farmers across the country.