DKMUL to formulate insurance for 1,500 cattle

DKMUL to formulate insurance for 1,500 cattle

Mangalore Today News Network

Apr 02, 2019: Dakshina Kannada Cooperative Milk Union Ltd. (DKMUL), which launched cattle insurance scheme for the first time about two months ago, is in the process of bringing 1,500 head of cattle under insurance cover now, according to sources in the union. The scheme has been launched to provide security to dairy farmers in case of death of cattle and prompt more farmers to take up dairying.

According to the scheme, 50 % of the annual premium will be borne by the Raita Kalyana Trust under the union and the balance amount will have to be borne by the farmer or the local milk producers society. The insurance cover is provided by the National Insurance Company. The eligibility for the claim of insurance amount starts 15 days after the death of the cattle.

The premium amount varies depending on the quantity of milk yield by cattle and the market value of the animal. For example, if the market value of a cow yielding 10 litres of milk is taken as Rs. 30,000, the annual premium will be Rs. 708. Of this amount, a farmer will have to bear his share of Rs. 354. In case of death of the cow, the farmer will get about Rs. 30,000.

Sources said that the union is planning to cover about 10,000 animals in this financial year.

The union has, through its farmers trust, been giving some minimum amount as compensation to owners in case of death of cattle. But insurance cover would be more attractive.

The sources said that whether the insurance cover would attract more farmers to take up dairying cannot be predicted. But it would definitely make the existing ones happier.

The union has 722 milk producers societies under its jurisdiction in Dakshina Kannada and Udupi districts.

Of the 1.20 lakh members of the union now, 65,000-70,000 members are active. The active members supplied milk to the union regularly.

The union’s daily procurement of milk from farmers stood at 4.33 lakh kg.. and is considered advanced in performance.