Step-by-Step Procedure for Insuring Commercial Poultry (Broilers & Layers) in India

Step-by-Step Procedure for Insuring Commercial Poultry (Broilers & Layers) in India

1. Understand the Insurance Coverage:

• Poultry insurance in India covers mortality due to diseases, accidents, natural calamities, and fire hazards.
• Some policies also provide coverage against business interruption and consequential losses.
• Policies can be availed for broilers, layers, breeders, and hatcheries.

2. Identify a Suitable Insurance Provider:

• Select from government-backed insurers (e.g., Agriculture Insurance Company of India) or private insurance companies.
• Compare policies, premium rates, coverage, and claim procedures.

3. Eligibility Criteria:

• The farm should be a recognized commercial poultry unit.
• Birds must be healthy and vaccinated as per veterinary guidelines.
• Identification of birds should be maintained through records.

4. Documentation Required:

• Duly filled proposal form.
• Farm registration details and ownership proof.
• Vaccination and health certificate from a registered veterinary officer.
• Previous insurance details (if applicable).
• Bank details for premium payments and claim settlements.

5. Inspection and Assessment:

• The insurance company may conduct a pre-insurance inspection of the farm.
• Veterinary officers assess the health status of the birds.

6. Payment of Premium:

• Premium rates are generally calculated based on the number of birds and the sum insured.
• Rates may vary from 3% to 5% of the sum insured, depending on risk factors.
• Government subsidies may be available under specific schemes.

7. Policy Issuance:

• After verification of documents and premium payment, the insurance policy is issued.
• The policy outlines the terms, coverage details, exclusions, and claim process.

8. Claim Process in Case of Loss:

• Immediate Notification: Inform the insurance company within 24 hours of bird mortality.
• Veterinary Report: Obtain a post-mortem report from a government veterinary officer.
• Submission of Documents: Submit the claim form, death certificate, and other necessary documents.
• Claim Assessment: Insurance company representatives will verify the claim.
• Claim Settlement: Upon approval, the insured amount is credited to the bank account.

9. Renewal of Policy:

• Poultry insurance policies are usually annual and need to be renewed before expiry.
• Ensure continuous coverage by submitting renewal documents and paying the premium on time.

10. Important Considerations:

• Maintain accurate records of bird purchases, mortality, and vaccination schedules.
• Adhere to biosecurity measures to prevent disease outbreaks.
• Stay updated on government schemes offering financial assistance for poultry insurance.

By following these steps, commercial poultry farmers in India can safeguard their investments and ensure financial stability in case of unforeseen losses.

 

Major Exclusions

1. Malicious / willful injury, neglect.
2. Transit by any mode of transport.
3. Improper management (including over crowding) i.e. when the farm is not run on scientific poultry management guidelines and standards laid down by Poultry Corporations/ Animal Husbandry Department in regard to housekeeping, watering, feeding, vaccination, deworming, debeaking, lighting/ heating, culling etc.
4. Loss / death due to natural mortality, non-specified or unknown diseases or reasons.
5. Undergrowth, cannibalism, action or predators like preying birds and carnivorous animal.
6. Theft and clandestine sale of birds.
7. Intentional slaughter of the birds except in cases where destruction is necessary to terminate incurable suffering on humane consideration and to protect remaining healthy flock to reduce additional losses on the basis of certificate issued by qualified Vet. Surgeon or in cases where destruction is resorted to by order of lawfully constituted authority, under intimation to Insurance Company.
8. Consequential loss however caused.
9. Permanent and partial disablement of any nature.
10. Loss of production i.e. the failure due to any reasons whatsoever to lay required number of eggs or small sized eggs in layers or to attain proper weight at a particular age in Broilers.
11. Marek’s disease, Ranikhet disease, Fowl Pox and Infectious Bronchitis. These diseases are covered by the policy if the birds are successfully inoculated against these diseases and the necessary veterinary certificate to that effect is supplied to the company. Coccidiosis and other diseases are covered only if preventive and curative measures are taken from time to time.
12. Malnutrition/ shortage of water, death due to starvation because of non supply of feed to birds or similar reasons of whatsoever nature.
13. Undergrowth.
14. Cannibalism
15. Loss due to huddling and / or piling of birds.
16. Avian leucosis Complex (A.L.C.)
17. War, invasion, 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 threat.
18. Any accident, loss, destruction, damage or legal liability directly or indirectly caused by or contributed or arising from nuclear weapons.

How to Effect Insurance?

1. Proposal Form
2. Veterinary Health Certificate from a qualified Veterinarian
3. All birds in the farm should be covered.
4. Farm should follow standard package of practices, vaccination schedule, deworming, debeaking.
5. Farm should maintain essential records as per insurers specifications.

Claim Procedure

1. In the event of 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 filled in claim form.
   • Vet. P.M. Report for sample birds.
   • Daily records of mortality, feeding etc.
   • Purchase invoices for the birds.
   • Any other point to substantiate the loss like photographs, medical bills, etc. as and when required.
2. In case of alarming death/outbreak of epidemic nature immediate notice within 12 hours should be given to the Company and all birds should be segregated and produced to the representative of the Company or to any person authorised by the Company for inspection.
3. Daily mortality details should be sent to the Company on weekly basis failing which report will be treated as nil for that particular week.
4. Delay in reporting of the claim should be avoided and if there is delay for more than three days the claim would be treated as non-standard.
5. In case of doubtful claims/ farms for which claim ratio is adverse, Technical Report from an expert may be insisted for settlement of claim.

Note: Policy details given are indicative, not exhaustive. Please contact your nearest NIA office for further details.

Insurance Coverage

The Policy shall provide indemnity against death of birds due to accident (including fire, lightning, flood, cyclone/ storm/ tempest/ earthquake, strike, riot, act of terrorism) or diseases contracted or occurring during the period of insurance subject to the exclusions.

Highlights

1. This is a comprehensive insurance scheme applicable to poultry farms consisting layer birds, broiler birds and parent stock (Hatchery) which are exotic and cross-bred.
2. All birds in a farm should be covered. After issuing policy, if additional birds are introduced in the farm, immediate notice to be given to insurer otherwise claim will be repudiated.
3. The scheme is applicable to poultry farms consisting of minimum number of birds as specified
4. The scheme is available for insuring birds in the following age groups

Broilers	1 day to 8 weeks 1 day to 6 weeks
Layers	day to 20 weeks 21 weeks to 72 weeks 1 day to 72 weeks
Hatchery Birds (Parent Stock)	1 day to 72 weeks

1. The premium rates are applicable on per cent basis which are applicable to the peak value of birds in the applicable categories.
2. The sum insured is the peak value and for broilers is INR 45 and for layers is INR 75. There is a week wise valuation table in-built in the policy which is applied for calculating indemnity. In case of parent stock the same is negotiable.
3. The policy is charactersied by excess and final indemnity is restricted to 80% (60% in case of Gumboro).
4. The scheme is characterized by No claim discounts as well as good feature discount.

Basic documents to be submitted by insured for claim settlement (To be submitted by insured after reporting of loss)

1. Claim form with Vet certificate showing market value 2. Statement of concerned persons 3. PM Report sound by the Veterinary Doctor 4. Purchase invoice 5. Daily Stock register 6. Mortality register 7. Vaccination register

Basic Terms and Conditions:

1. • : Policies typically cover mortality due to accidents, diseases, natural calamities, and fire.​
   • Exclusions: Intentional harm, neglect, unapproved management practices, and pre-existing conditions are generally excluded.​
2. Eligibility Criteria:
   • The poultry farm should be a recognized commercial operation.​
   • Birds must be healthy and appropriately vaccinated.​
   • Accurate records of bird population, health status, and farm management practices are required.​
3. Sum Insured:
   • The sum insured is based on the market value of the birds at the policy’s inception.​
4. Claim Procedures:
   • Immediate notification to the insurer upon an incident.​
   • Submission of a duly filled claim form, veterinary reports, and other necessary documents.​
   • In certain cases, a technical report from an expert may be required for claim settlement. ​

 Premium Rates:

• Premium Calculation: Premiums are generally calculated as a percentage of the sum insured, varying based on factors such as bird type, age, farm management practices, and risk assessment.​

Rate Variations: For instance, the basic premium rate for cattle insurance is about 4% of the sum insured

Coverage Scope:

• Risks Covered. While specific rates for poultry may differ, they are typically in a similar range. ​

 Claim Settlement Ratio:

• Industry Averages: The claim settlement ratio indicates the proportion of claims settled by insurers against the total claims received. While specific ratios for poultry insurance are not readily available, the overall claim settlement ratio for general insurance companies in India has been reported at around 98.45% in recent years. ​
•  Variability: It’s important to note that claim settlement ratios can vary between companies and policy types. Therefore, reviewing the claim settlement history of a chosen insurer is advisable.​

Recommendations:

• Policy Comparison: Evaluate policies from multiple insurers to understand the coverage, exclusions, premium rates, and claim settlement processes.​
• Consultation: Engage with insurance advisors or brokers specializing in agricultural or poultry insurance to gain insights tailored to your specific needs.​
• Documentation: Maintain meticulous records of poultry stock, health reports, and farm management practices to facilitate smooth claim processing if needed.

 

Several reputable insurance companies in India offer poultry insurance policies. Here are some leading providers:​

1. The New India Assurance Co. Ltd.

• Address: 87, M.G. Road, Fort, Mumbai 400001​newindia.co.in
• Website: https://www.newindia.co.in/​
• Poultry Insurance Details: Offers coverage for poultry farms against risks such as diseases, accidents, and natural calamities. ​newindia.co.in

2. National Insurance Company Ltd.

• Address: 3, Middleton Street, Kolkata 700071​
• Website: https://nationalinsurance.nic.co.in/​
• Poultry Insurance Details: Provides insurance policies covering various risks associated with poultry farming.​

3. Oriental Insurance Company Ltd.

• Address: A-25/27, Asaf Ali Road, New Delhi 110002​
• Website: https://orientalinsurance.org.in/​agriinsurance.com
• Poultry Insurance Details: Offers comprehensive coverage for poultry farms, including protection against diseases and natural disasters.​

4. ICICI Lombard General Insurance Company

• Address: ICICI Lombard House, 414, Veer Savarkar Marg, Near Siddhi Vinayak Temple, Prabhadevi, Mumbai 400025​
• Website: https://www.icicilombard.com/​agriinsurance.com
• Poultry Insurance Details: Provides tailored insurance solutions for poultry farmers, covering a range of risks.​

5. HDFC ERGO General Insurance Company

• Address: 1st Floor, HDFC House, 165-166, Backbay Reclamation, H. T. Parekh Marg, Churchgate, Mumbai 400020​
• Website: https://www.hdfcergo.com/​agriinsurance.com
• Poultry Insurance Details: Offers specialized insurance products for poultry farms, ensuring coverage against various perils.​

6. IFFCO-Tokio General Insurance Co. Ltd.

• Address: IFFCO Tower, Plot No. 3, Sector 29, Gurgaon 122001, Haryana​
• Website: https://www.iffcotokio.co.in/​agriinsurance.com
• Poultry Insurance Details: Provides comprehensive poultry insurance policies with extensive coverage options.​

7. Bajaj Allianz General Insurance Company

• Address: Bajaj Allianz House, Airport Road, Yerawada, Pune 411006​
• Website: https://www.bajajallianz.com/​
• Poultry Insurance Details: Offers poultry insurance plans designed to protect farmers against potential losses.​

8. Cholamandalam MS General Insurance Company Limited

• Address: Dare House, 2nd Floor, No. 2, N.S.C. Bose Road, Parrys, Chennai 600001​
• Website: http://www.cholainsurance.com/​agriinsurance.com
• Poultry Insurance Details: Provides insurance solutions for poultry farms, covering various risks and ensuring financial protection.​

When selecting an insurance provider, it’s advisable to compare the coverage options, premium rates, claim settlement processes, and additional benefits offered by each company to determine the best fit for your poultry farm’s specific needs.

IMPORTANT FORMATS FOR COMMERCIAL POULTRY BIRDS INSURANCE

POULTRY CLAIM FORM

POULTRY INSURANCE PROPOSAL FORM