Livestock Sector is an important sector in the scheme of rural economy. For 100 million households in India, livestock income is either a primary source or a secondary source. The supplemental income derived from rearing of livestock provides the cushion during the uncertainties of crop production.
Livestock Insurance in India started in the year 1970 has grown but still has not covered more than 8% of the livestock population in India. It has been made mandatory for bank credit and 90% of insurance is sold only through credit linked products. Voluntary purchase of livestock insurance is limited to 10% of the overall sale.
The segment is hampered by lack of database ? mortality of cattle, fraud and other imbalances. Apart from it, public sector insurance have not shown real interest and caters to this sector more out of social obligation. Their overall income from livestock is often less than 1%. Further there is a lack of anti-risk mitigation measures like vaccination practices are not prevalent. Lack of veterinarians and other infrastructure adds to woes of insurers. Though India provides a huge demand with large cattle population, the industry is yet to realize the potential