Dairy Farm Insurance in India, Companies, Policy, and Premium

Introduction to dairy farm insurance in India: Dairy is a business established for the processing of animal milk. This is mostly done with cows or goats, but also with buffaloes, sheep, horses, or camels for human consumption. Dairy farm insurance policies cover a wide range of animal deaths due to fire, road accidents, electric shocks, drownings, snake bites, strangulation, poisoning, and accidents caused by external sources.

Dairy Farm Insurance in India
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Many small and medium-sized farms and farms ensure their animals are under the farm policy. Dairy insurance is the coverage that protects your animals unexpectedly. Whether on the farm, ranch or in transportation, your animals are considered your personal property. If something happens to them due to the covered damage, we will help cover the cost to fix the problem. Dairy insurance protects the rural people of India from financial loss due to the death of their cattle.

The cost of dairy farms is high and their loss can force farmers to go into debt. With dairy insurance, farmers will have comprehensive protection against dairy farm damage. A dairy is usually located on a dedicated dairy farm or part of a mixed farm that is involved in milking. The Government of India is working to strengthen the infrastructure for the production, processing, and marketing of quality milk, milk, and milk products through the following dairy development schemes;

  • National Dairy Development Program (NPDD)
  • National Dairy Plan
  • Dairy Entrepreneurship Development Scheme (DEDS) 
  • Support Dairy Cooperatives 
  • Dairy Processing and Infrastructure Development Fund (DIDF)

Guide on dairy farm insurance in India, insurance schemes, AgriChoice policy, cattle insurance, dairy loan importance, and top dairy companies in India

Dairy Farming
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Insurance schemes to cover dairy farmers 

The dairy farmers become the beneficiaries of the Ksheera Santhwanam scheme, which has been jointly introduced by the Kerala State Dairy Farmers Welfare Fund Board and the Dairy Cooperative. There will be four insurance schemes. These are Health Insurance, Accident Insurance, Life Insurance, and ‘Gau’ Suraksha Policy (livestock protection scheme). 

Dairy farmers who provide milk to the cooperative will benefit their husbands, two children under the age of 25, their parents, and the workers of the cooperative. Every dairy farmer can cover his livestock under this scheme. 

Health insurance

A dairy worker/farmer can include his / her spouse, two children, and parents in the health insurance scheme. Beneficiaries up to the age of 80 years will get Rs. 100,000 as coverage under this scheme. The age limit will not apply to beneficiary parents. Children will be covered until the age of 25 or until they get married. A dairy farmer can add more children as beneficiaries by paying an additional premium. 

Accident insurance

It is a scheme that only a dairy farmer can avail. Coverage will be Rs. 7 lakhs and education grant up to Rs. 50,000. The term is one year. Beneficiaries will benefit if the policyholder dies in an accident or retains a disability or disability. 100% cover in case of accidental death. 

Life insurance

Beneficiaries should be between 18 and 60 years of age. The cover of one lakh rupees will be for one year. This policy will take effect 45 days after the beneficiary joins. (Except if it is an accidental death). The policy will not cover suicide. 

Gau suraksha

The protection scheme will cover the entire livestock under the benefit farmer. The filled-in enrolment form should have a certificate by a veterinary surgeon and the requisite photographs of the livestock. Only those who do so will be allowed to register and pay the premium. The animal picture must have a clear tag number. The tag should be accompanied by a complete picture of the animal. In case of the death of cattle, the beneficiary will get the full amount. For other ailments, including anthrax and foot and mouth disease, coverage will be 75%. Cattle vaccination is a prerequisite for coverage.

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Tags for Cows
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Dairy Revenue Protection Program

The Dairy Revenue Protection Program insures against the unexpected declines in the quarterly revenue of each participating operation from the sale of milk relative to the level of guaranteed coverage. Expected earnings are based on the future prices of milk or dairy products (depending on the option chosen by the dairy producer) and the quantity of milk produced by the dairy producer. 

AgriChoice policy for dairy farm

Working with livestock involves inherent risks. That’s why Nationwide’s AgriChoice policy covers a wide range of causes of loss of dairy farms, such as;

  • Accidental shooting 
  • Attacks by dogs or wild animals
  • Electrocution
  • Flood damage
  • Loading and unloading accidents

AgriChoice policy coverage

The basic policy requires most dairy operations to protect, including;

Farm homes and materials, detached garages and other buildings, farm and farm structures, personal property, farm machinery and equipment, milk and pasteurization equipment, refrigeration units, equipment malfunction, general liability protection 

Next, offer a variety of optional coverage to help you tailor your policy to the exact needs of your dairy farm, without having to pay for the coverage you don’t need. 

Optional Agri-Choice Coverage for Dairy Farms 

  • Coverage for your herd – The insured dairy cow can be protected from several additional categories of damage. If you choose not to ensure your cows, AgriChoice still provides you coverage if they collide with a motor vehicle, train, or are accidentally shot. High limits are also available. 
  • Coverage for your grass – It also covers grass or hay required cost for dairy animals. 
  • Protection of liability for unnecessary animal cruelty charges – Legal defense against animal cruelty charges can result in large attorney fees. AgriChoice provides policy coverage for the payment of attorney fees for cases in which you are not found guilty. (Not available in all states.) 
  • Disruption of farming operations – Provides coverage for loss of earnings and additional costs incurred due to disruption of farming due to the covered cause of loss. 
  • The temperature-sensitive feature – It offers coverage when an electrical interruption or malfunction of a refrigeration system causes a malfunction.

Top dairy companies in India

  • Amul – Anand Milk Union Limited, Gujarat 
  • Nandini Milk – Karnataka Co-operative Milk Producers Federation Ltd
  • Mother Dairy
  • Kwality Limited
  • Creamline Dairy Products Ltd (Jersey Dairy)
  • KSE Ltd
  • Parag Milk Foods Ltd
  • Mother Dairy Fruit & Vegetable Pvt Ltd
  • Schreiber Dynamix Dairies Ltd
  • Orissa State Cooperative Milk Producers Federation
  • Andhra Pradesh Dairy Development Cooperative Federation Ltd
  • Karnataka Co-operative Milk Federation
  • Dynamix Dairy
  • Tamil Nadu Co-operative Milk Producers Federation Ltd
  • The Kerala Cooperative Milk Marketing Federation Ltd (Milma)

Cattle insurance (Coverage, Claim & Exclusions)

Cattle are considered one of the most valuable assets of the rural community. Ordinary, small, and medium-scale farmers get most of their income from raising cattle. Cattle insurance is another initiative of the Government of India to protect the country’s agrarian economy. 

What is cattle insurance?

Cattle insurance protects the rural people of India from financial loss due to the death of their cattle. The cost of livestock is high and their loss can force farmers to go into debt. With livestock insurance, farmers will have comprehensive protection against livestock damage. 

Types of cattle insurance

There are two types of risks covered under this policy;

  • Death of cattle – It covers the loss of life due to an accident or injury and an illness caused by a surgical infection. 
  • Permanent disability coverage – It covers the risk of permanent and complete disability. 

What does cattle insurance cover? 

In addition to fire, road accidents, drownings, electric shocks, snake bites or poisoning deaths or disabilities, livestock insurance provides coverage for other issues. These include;

  • Death due to natural disasters such as storms and earthquakes 
  • Death due to illness, infection, or calf during a surgical operation
  • Permanent disability, for lactating cows, means pregnancy and yield milk. This refers to the incapacity to breed for bulls. 


This policy covers all Indigenous, Crossbred, and Exotic animals. Animals include milch cows, buffaloes, calves/heifers, stud bulls, and bullocks. The policy provides for compensation for the death of animals (animals) due to;

  • The accident includes fire, lightning, flood, flood, inundation, cyclone, tornado, storm, tempest, hurricane, earthquake, strike, and civil commotion
  • Surgical operations 
  • Diseases that occur during this policy period 

Animal age group to be covered

  • Milch cows 2 years or first calving up to 9 years 
  • Milch buffaloes 3 years of age at 1st calving to 9 years
  • Stud bulls 3 years or earlier age at maturity to 8 years
  • Bullock buffaloes 3 years to 9 years
  • Calves or Heifers 4 months up to date of 1st calving 

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Indian Bullock buffaloes
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Cattle death covers insured cattle within the geographical area specified in the policy schedule, in case of life accident infection or surgical operation. The policy also covers livestock deaths which are covered by insurance outside of the said geographical area in case of drought, epidemic diseases, and other natural calamities. 

Optional benefits 

Permanent disability coverage covers the risk of permanent and complete disability of cattle. A policy will be issued in the name of the group including the names of the members or clients along with the details of their cattle called “Insured Cattle” which is part of the policy. The age of the calf (cow/buffalo) should be more than 90 days and the age of lactating animals (cow/buffalo) should be up to 4th lactation. 

Valuation and sum insured 

  1. The market value of sheep and goats varies from region to region, depending on the breed. And from time to time. The veterinarians will have recommendations from the vet as well as accept insurance, it is considered a suitable guide for claim settlement 
  2. The sum insured shall not exceed 100% of the market value. 

Veterinary examination 

  1. Veterinary surgeon’s age, identification marks, health report of animal, and an indication that immunization is complete must be obtained for each suggestion. 
  2. Wherever veterinary surgeons are not available, companies may do so at their discretion. Accept health certificates issued by Livestock Inspectors or Supervisors who are Diploma. Holders of such certificates will only be eligible for approval of proposals. 
  3. Fresh veterinary examination is not necessary if renewal is done on time. 
  4. Insurers may pay a fee of Rs. 1 / – per animal to the veterinarian as an examination fee. The documents required for the claim process at the time of approval of the proposal.

Documents required for claim process

The following documents for obtaining the claim amount;

  • Proposal form 
  • Medical certificate from veterinary doctor
  • At least 4 photographs of the insured animal 
  • Duly filled in the claim form
  • Receipt of payment at the time of purchase of animals
  • The identification tag of insured cattle

How does cattle insurance work? 

Cattle insurance is an important aspect of livestock management in rural areas. Let’s understand how this insurance works. 

  • The first step is to identify the cattle and determine the value of the livestock before finalizing the sum insured. The diagnosis is made jointly by the beneficiary and an authorized veterinarian. 
  • According to the policy, the beneficiary has to pay a premium on a monthly or annual basis. In the event of death or disability of the animal, the beneficiary immediately notifies the bank of the accident. 
  • All necessary documents need to be submitted to the insurance company. 
  • A representative of the insurance company will verify all the documents and settle the claim.

Important aspects

Also known as livestock insurance, this policy is available to almost all livestock owners in rural India. However, before buying insurance, it is important to keep the following facts in mind;

  • Cattle should be properly vaccinated and fed a nutritious diet. If intentional negligence is found to be the cause of death or disability, the claim may be rejected. 
  • For the claim to be approved, the bank must be notified immediately after the accident. 
  • A skilled and certified veterinarian should be involved in treating cattle; Otherwise, the claim may be rejected. 

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Feeding Cows in Dairy
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Benefits of buying cattle insurance 

Cattle insurance is intended to benefit as many people as possible in rural India. The insurance policy provides coverage against the risks of death and permanent disability due to famines, accidents, earthquakes, riots, or strikes. Also, surgical operations, fire, explosion, explosion, and damage to electric aircraft or missile testing activities, diseases, and infections that occurred during the policy period. Natural disasters such as hurricanes, tornadoes, typhoons, inundation, storms, and floods.

Major exclusions

Malicious process, transportation by air or sea before the onset of an accident/disease hazard. Intentional slaughter, theft or clandestine sale, loss of insured animals, war and related hazards, nuclear emission clause. 

The company will not be liable for compensation under this policy;

  • Malicious or intentional injury or neglect, overloading, unskilled treatment, or use of animals without the written consent of the company. 
  • In addition to the purpose described in accidents before the onset of danger. 
  • Deliberate slaughter of animals is a direct consequence of the threat of war, invasion, foreign enemy action, hostility, civil war, rebellion, revolution, insurrection, mutiny, commotion, military or usurping power, or any consequence or attempt to threaten. 
  • Weather insurance has a knock-on effect on the economy as it enables access to factors of production. Appropriate protection offered by a seasonal insurance product enhances the risk-taking capacity of farmers, banks, microfinance lenders, and agro-based industries. As a result, the entire rural economy will flourish. 

Cattle insurance companies in India 

Some of the insurance companies offering this scheme in India are;

  • HDFC Ergo 
  • Reliance General 
  • ICICI Lombard 
  • Oriental Insurance 
  • SBI General 

What is the premium amount for the insurance

The amount of premium depends on the insurance company which varies depending on the product. 

Dairy loan importance and eligibility

Dairy Loan is a special loan from Karur Vysya Bank designed to finance the establishment of dairy units for milk production. Credits for individuals and farmer groups for purchasing features and benefits;

  • High-yielding dairy animals. 
  • Cattle: Indigenous breeds such as Gir, Tharparkar, etc., and exotic breeds such as Jersey, Holstein Friesian, etc., and in the case of buffaloes: Mehsana, Jaffarabadi, etc., 
  • Construction of cattle sheds. 
  • Purchase of Dairy Equipment, Chaff Cutter, etc., 

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Dairy Farm Insurance2
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Individuals, Farmers, Farmers Groups, Firms, Companies, Societies, NGOs, etc. 

Quantum of loan

  • Unit cost excluding Margin Money.
  • According to the viability of the project and then repaying capacity of the borrowers.


The repayment period will mainly depend on the cash flow and change between 3 to 7 years.


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