Guidelines for implementation of the ‘SOCIAL SECURITY SCHEME’ for sheep breeders

The Central Wool Development Board proposed a new scheme under Social Security programme of the Government to benefit the sheep breeders by providing insurance coverage to them and their sheep flock by introducing two insurance plans : (i) Sheep Insurance Scheme and (ii) Sheep Breeders Insurance Scheme.

Objectives:

The basic objective of these insurance plans are to provide enhanced insurance cover to sheep breeders in the case of natural as well as accidental death and for the sheep in the case of accident including fire, lightning, storm, tempest, flood, inundation, earthquake, famine and diseases contracted or occurring during the period of the policy for project areas.

Scope:

  • Sheep population of India is about 6.15 crores
  • Approx. 12 lakhs sheep breeders involved in sheep rearing activities
  • The Board proposed to cover sheep and sheep breeders of different wool producing States. Mainly in hilly and desert parts of the country.
  • Beneficial to sheep breeders to replace their lost sheep flocks in the case of casualty
  • The Board proposed to cover initially 24 lakhs sheep and 93,500 lakhs sheep breeders for three years under Social Security scheme during 11th Plan.
Eligibility:
  1. Sheep Insurance Scheme :

1. Sheep covered under CWDB Scheme to be registered for insurance.

2. Age of Sheep should be from 1 year to 9 years.

3. Sheep shall be recognizing breed of the state concern.

4. The sheep breeders shall insure 100% of eligible sheep

5. Sheep should not be covered under any other insurance scheme/ plan.

  1. Sheep Breeders Insurance Scheme :

1. Persons who are involved in sheep rearing activities

2. Sheep Breeder, whether male or female, between the age group of 18 to 59 years.

3. Sheep breeders who are already covered under the other schemes of the CWDB.

Project beneficiaries:

Initially, the Board proposed to implement this Social Security schemes on pilot project basis to benefit the sheep and sheep breeders covered under the project areas of the other scheme of the Board (i.e. Sheep & Wool Improvement Scheme).

The Central Wool Development Board will authorize agency as Implementing Agency (State Government/Non Governmental Organization etc.) in the project area of concerned State and shall finalize insurance coverage of the sheep and sheep breeders in consultation with the Insurance Company.

Procedure for application:

  • The Sheep Insurance Scheme will implement through State’s Sheep or Wool Board/ Corporation/ Federation / NGOs.
  • The CWDB has prepared detail guidelines and proforma for Non-Governmental Organization to implement the schemes of the Central Wool Development Board for their verification /examination etc.
  • Under the covered areas of CWDB, the Sheep and Sheep Breeder insurance schemes will be implemented with the Sheep & Wool Improvement Scheme of the CWDB through the same implementing agency, simultaneously.

Criteria for selection:

The Central Wool Development Board will invite detail proposals from various Insurance Companies like LIC, ICICI Lombard, Bajaj Alliance, United India Insurance Co. etc. to offer the bid for implementation of Sheep and Sheep Breeders Insurance schemes in various parts of the country with their terms & conditions etc.

The selection of the Insurance Company, if more than one, would be done on the basis of following information :

  • Minimum rate of premium
  • Past experience and facilities for sheep and sheep breeders for easy settlement of claims
  • Network and available infrastructure in different parts of the country
  • Manpower at grass root level for insurance

Claim procedure :

  1. Sheep Insurance Scheme :

The following procedure proposed for expeditious claim settlement.

  • Immediate intimation of death of the animal by the sheep farmer within 24 hours to Insurance Company.
  • Ear Tag applied to the animal should be surrendered or otherwise claim will be rejected on no tag no claim basis.
  • In cases where tags are lost and intimation is already given to the insurance company, the retagging has not been carried out, the claim will be considered on merits
  • Death Certificate / PM Report issued by a qualified Veterinary Assistant Surgeon has to be submitted along with claim form. However, in absence of a qualified Veterinary Assistant Surgeon, a Death Confirmatory Certificate may be submitted which is issued jointly by any three of the following along with claim form :

- President or Secretary of Village Organisation

- Para Veterinarian- Veterinary/Livestock Assistant/Junior Veterinary Officer.

- Sarpanch / Village Secretary

- Representative of NODAL agency

  • Submission of Postmortem Report, wherever necessary
  • Submission of Panchanama/ FIR of Police in case of Accidents.
  • The Insurance company shall have to settle the claims up to the death of 5 sheep on the basis of panchanama.
  • No postmortem report No death certificate is required.
  • When the claim per instance exceeds five animals, Photograph of Carcasses with ear tag intact along with the beneficiary shall be submitted in support of the claim.
  • The claim would be settled within 15 days after the receipt of required document.

B. Sheep Breeders Insurance Scheme :

The death or disability claims under the scheme will be settled by the P&GS Unit servicing the scheme. LIC will settle claims by sending A/c payee cheques directly to the beneficiaries/through any other means as decided by LIC.

In the event of death of the member before the Terminal Date, and while the policy is in force, his/her nominee will have to make an application along with Death Certificate for payment of claim amount to the designated official of the Nodal Agency.

The designated official of the Nodal Agency shall verify the claim papers and submit it the same along with the death certificate and a certificate that the deceased member was covered under the scheme.

Nodal Agency should submit along with the application, the following requirements:

a)Claim Form duly completed in all respects

b)Original death certificate along with a copy duly attested.

In case of accident benefit claim the following additional requirements will have to be submitted along with the Death Registration Certificate:

i)Copy of FIR

ii)Post Mortem Report

iii)Police inquest Report

iv)Police conclusion Report/ Final Report of Police.

Permanent Total Disability Benefit:

The claimant has to submit documentary evidence of the accident, as also the Medical certificate from a Government Civil Surgeon or qualified Government Orthopaedician certifying permanent total/partial disability due to accident, stating loss of limb/s of the member covered under the scheme.

Every member shall appoint a nominee to receive the claim amount after his death. Nomination form is a part of the membership application form and it should include particulars of the nominee to receive the claim amount. It should be ensured that this procedure is followed without fail so that there is no difficulty at the time of settlement of death claims. The Nomination form will be kept in the custody of the Nodal Agency and shall be forwarded to LIC along with the claim papers on the death of the member.

Claim procedure for scholarships

The Nodal Agency will identify the students

i)The member whose child is eligible for scholarship shall fill up an application form and submit it to the Nodal Agency. The Nodal Agency in turn will submit the list of beneficiary students to the concerned P&GS Unit with full details such as name of the student, school’s name, class, member’s name master polity no., membership no.

ii)Every half year, for 1st July and 1st January, each year LIC will send the Account Payee cheque in the name of the Nodal Agency along with list of beneficiary students who will pass on the scholarship to eligible students. Nodal Agency will have to submit a utilization certificate before claiming the scholarship for the next quarter.

iii)Any other mode of payment of scholarships as decided by LIC/Government may be applicable in future.

Financial parameters:

  • The Insurance Companies shall administer the schemes. Normal period of insurance is 12 months.
  • The share of annual premium per sheep/sheep breeder shall be decided with the insurance companies.
  • The service tax etc. shall be borne by the CWDB.
  • Re. 1/- per sheep per annum shall be paid as field survey, registration etc. to the implementing agency by the CWDB under Govt. contribution.

Proposed Premium for Sheep Insurance

Premium contribution under Sheep Insurance Scheme :

On sum insured @ 3.2 % + Service Tax @ 12.36% on premium.

Age Group / Premium/ sheep @ 3.20 % of Rs. 1,200 per sheep / Tax @ 12.36% of Rs. 38 / Total premium per sheep per year / Premium contribution
Beneficiary / Govt. of India (CWDB)
1 to 9 Years / Rs 38.00 / Rs.4.69
(say Rs. 5.00) / Rs. 44
(38+5+ 1*) / Rs. 19 / Rs. 25
( 24+1* )
  • Re. 1 per sheep per year will be paid to the implementing agency for survey, registration, documentation by the Board.

Proposes Premium for Sheep Breeders Insurance

Premium contribution / Under Shepherds Insurance Scheme
Govt. of India (CWDB) / Rs. 150/-
Sheep Breeder’s contribution / Rs. 80/-
Contribution of Insurance Company / Rs. 100/-
Total annually premium under Insurance Plan / Rs. 330/-

Proposed Benefitto sheep & sheep breeders:

  1. Sheep Insurance Scheme :

In the event of death of sheep, sum assured of Rs. 1,200/- per sheep will become payable to the concerned sheep breeders. At the time of sudden death of sheep flock due to her high mortality rate and sensitive animal, it is very beneficial to sheep breeders to replace lost sheep flock.

  1. Sheep Breeders Insurance Scheme :

In the event of normal death of the sheep breeder, Sum Assured of Rs. 60,000 will become payable, to the nominee. In the event of death by accident or Partial/Total Permanent Disability due to accident, the following benefit shall be payable:

Particulars / Amount payable
On natural death / Rs. 60,000/-
Accidental death / Rs. 1,50,000/-
total disability / Rs. 1,50, 000/-
Partial disability / Rs. 75,000/-

Scholarship Benefits:

Scholarship as a free add on benefit will be provided to a maximum of two children of the beneficiary studying between 9th to 12th standard @ Rs. 100 per month for each child payable half yearly on 1st July and 1st January each year.

Approving authority:

The Executive Committee of the Central Wool Development Board is the approving authority of Insurance schemes through reputed Insurance Companies in collaboration with any nodal agency for implementation of the schemes in different States. The bid received from various Insurance Companies will be initially examined by the Project Committee of CWDB for recommending the same to the Executive Committee for approval.

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