Sa-Dhan Newsletter Volume 1 Issue 4

Micro-Insurance

10.

The animals are insured for the loan term, which

responsible for specified number of SHGs. LEAD has

is two years. The claim amount for the first and

hired one veterinary doctor to oversee the

implementation of the cattle care and insurance

second years are 75 percent and 80 percent of

the sum insured respectively. The loan out-

programme. Recently village level youth have been

recruited as bare foot veterinary care staff. The para

standing against the animal is adjusted against

veterinary staff is part time employees. A para vet

the claim and only the balance is paid to the

takes care of the animals purchased through loans,

client.

in ten to fifteen villages falling under a Cluster Level

11. Exclusions of claims from coverage-- theft of

Federation. The responsibilities of the staff are given

,

animal, sale of animal, mass death due to wide

in Table 2.

spread contagious disease, death due to

negligence of client ­ not treating the animal

Cattle care facilities were introduced from November

1

in time, ignoring the vaccinations etc., culling

1999 to provide better care of animals, better yield

of milk, which would result in less loan defaults, and

of animal, poisoning of animal, death occurring

while entrusting the animal in someone else's

lesser insurance claims. The client has to pay one

hundred rupees each year for cattle care. The charges

care, death due to the carelessness of the client,

animals without ear tag, death due to road

for two years are deducted from the loan amount

accident, death after the valid term of the

prior to disbursement in respect of animals purchased

out of Rabo bank loans. The cattle care at present

insurance.

entails deworming of the animal three times a year

and Vaccination against Foot and mouth disease and

4.2 STAFF

LEAD operates through seven field units. Each field

other commonly prevalent disease once in six months.

unit has a programme co-ordinator primarily

The services of the para vet and the doctor are

available for treating other major illnesses for which

responsible for the working of the SHGs and the

lending programme. S/he is assisted by the field staff

the client has to pay only for the medicine.

Table 2: Responsibilities of the Staff

Staff category

Responsibilities under the cattle insurance

Fund raising for loan programme, policy decisions on insurance and cattle care,

Executive Director

recruitment of staff under the programme and regular review of the programme.

Veterinary Doctor

Training of bare foot vets, training of clients in cattle care, attending to sick

animals, supervising the work of barefoot vets, coordinating and supervising the

organizing of cattle care camps, all matters relating to insurance of animals -

verification of animals, documentation, death verification, finalizing the claims etc.,

and over all review of the programme of cattle insurance and cattle care.

Implementing the insurance scheme through the community workers, recom-

Field Coordinators

mending insurance claims and over all responsibility for proper accounts mainte-

nance.

Maintenance of accounts relating to insurance premium, claims settlement, and

Accountants

cattle care.

Complete charge of the loan programme, co ordination with barefoot veterinarians

Community Workers

for arranging cattle care.

Cattle care of animals including vaccination, de worming,tagging of animals cov-

Bare foot Veterinarians

ered under the insurance. coordinating with the doctor in case of sickness of the

animal, facilitating inspection of animal after death organizing cattle care camps

and close coordination with the clients.

4.3 OPERATION OF THE SCHEME

The animals purchased under the Rabo bank scheme are at present covered under the insurance scheme (See

Table 3). Though LEAD is planning to extend the scheme to all the animals bought by the clients through

loans, it is yet to take a definite shape.

The SHGs normally pool together their own savings, loans from RMK and commercial bank and decide to lend to

1

the members as per their needs. SHG members purchase cows, buffaloes and other small animals by taking loans from

their SHGs too.

18