Tata AIG
Rural & Social Initiative
Kiran Kumar K -Tata AIG
Cattle Insurance
Rural Market Segmentation
Demographics
•650,000 Villages
•800 m Population
Risks / Insurance
HIG/ MIG Segment - Top of Pyramid (TOP)
•>20 acres Land
•> 4 Cattle, Poultry
•Tractor
•Car, 2Wheeler, Cycle
•RCC Home
•TV, Fridge, AC
•Telephone
•< 5 - 10 acres Land
•< 3 Cattle, Poultry
•2Wheeler, Cycle
•Tiled / RCC Home
•TV
Micro Insurance – Generally Group Biz
Rich
2%
Mid-Income
20%
(Average
Landholdings /
Small
Entrepreneurs)
HH Income >$6/day
(Annual Saving
Rs.50,000/-)
•Crop Ins
•Cattle farm,
Poultry
•Tractor Ins
•Car, 2Wheeler Ins
•Home Ins
•IPA Ins
•Health Ins
•Travel Ins
•Life Ins
•Crop Ins
•Cattle farm,
Poultry
•2Wheeler Ins
•Disaster Ins
•IPA ins
•Health Ins
•Life Ins
Channel
Finance:
Comm/ Rural Bank
Coop Bank, PACS
Agriculture:
Rice Mills
Agri. Dealers
Dairying:
Coop. Dairy
Pvt. Dairy
Others:
Rural Agencies
Rural Agents
Micro Ins Segment - Bottom of Pyramid (BOP)
•< 2 acres Land
•1 Cattle, Livestock
•Unorganized Labor
•Skill based
Occupation
•Hut / Tiled Home
•Landless Laborer
•Unorganized Laborer
•Semi-Skill
Occupation
•Hut
Above Poverty Line
(APL) – 50%
(Very Marginal / No Landholding)
HH Income < $3/day (Annual Saving
Rs.3000/-)
Below Poverty Line
(BPL) – 27%
(Landless / Self Employed)
HH Income < $ 1/day (Annual Saving Rs.500/- to1000/-)
•Cattle Ins
•Sheep / Goat Ins
•Hut / Disaster Ins
•GPA Cover
•Micro Health Ins
•Life Ins
•Hut / Disaster Ins
•GPA Cover
•Micro Health Ins
•Life Ins
Finance
MFI
NGO
SHG
Dairying
Coop. Dairy
Pvt. Dairy
Market Potential – Cattle

India has the largest cattle population in the world approximately 283
million cattle, constituting 30% of the worlds cattle population.

Cattle in India is predominantly buffalo. Cows make up 30% of the
cattle population

India is the largest producer of milk (100 Million Tones). Even with
per capita milk production being one of the lowest in the world

It is one of the few countries where cattle is considered holy and
revered with religious fervor.

It drives the secondary economic activity in rural India. The primary
being agriculture.
Cattle Insurance - Product
For Cow, Buffalo, Stud Bull
EXCLUSIONS
Provides comprehensive cover to
cattle against death due to

Diseases

Accidents

Intentional slaughter of the animal

Missing, Theft and/or clandestine sale of
the insured animal


Natural calamities

Riots, Malicious damage,
temporary or permanent


War, nuclear material or weapons.

Consequential loss of whatsoever nature

Claim arising due to disease contracted
Permanent loss of milk yielding
capacity due to disease
Permanent Total Disablement (PTD) incapacity to conceive or yield milk
Terrorism

Partial Disablement of any type, whether
within 15 days from risk date

Claims received without intact Ear tag
Issuance Process
Identification of Cattle is key to successful implementation of cattle insurance

Identified with unique numbered polyurethane (PU) Ear-tags

This is done by proper Tagging of the animal at the time of acceptance for insurance
Issuance Process
Tagging shall be done by trained officer
 Check
 Tag
and confirm the health of the animal
the animal successfully with PU tag
 Digitally
insured
photograph the animal along with the
Front View
 Identify
Tag No.
 Identify shape of
horns
 Identify facial
colour and
marks
Side View

Identify the owner
along with the
animal

Identify health of
the animal

Identify the colour
and marks on the
animal
Rare View

Identify the udder of
the animal

Identify the shape of
the legs
Identify the health of
the animal
 Identify colour and
marks on the tail

Adverse Selection
Adverse Selection
Issuance Process

Prepare the Schedule of animals tagged for insurance
Proposal cum Schedule Form
Issuance Process
 Hand
over a vernacular pamphlet on animal care
and contact info in event of claim.
 Proposal form (Hard/Soft Copy) and Digital
Photographs to sent to the insurance company
within the next 48 hours
 In the event of claim field staff will intimate the
insurance company on the Toll free No.
 Field
staff will help the surveyor in identifying the
animal and facilitates necessary documentation.
Issuance Process
Retagging
 Inform
the Insurance Company immediately
 Arrange for retagging the animal
 Digitally photograph the animal once again
 Fill up a fresh proposal cum schedule and submit
the same along with the photographs.
Claims Settlement

Experience with various set ups:

NGO/MFI/NBFC

Private Dairies

Co Operative Dairies

Government Projects
Claims Settlement
 All
genuine claims have been settled with 15
working days
 Proper underwriting ensures profitability in the
long run to
 The Insured
 The Partner
 Then Insurance company
Our Strengths
The salient features of our service

We fundamentally believe in standardization of services up to the
last mile

Our product strength lies in our capacity to customize processes, which
mitigates hardships in verification for insurance and reporting of claims.

We will ensure proper risk management and consequently a better
portfolio which is fundamental to a successful Insurance program.

Our hi-tech risk management expertise will help reduce premium
rates in the long run, much to the benefit of the customer.

Claim Surveyor network across the country.

In house claims process for faster settlement.
MFI Role in Rural Insurance
Strength

Trust-worthiness

Knowledge of rural markets
Well spread out Network
Network at affordable cost
Large customer base



MFI Role in Rural Insurance
Benefits
 Secures MFI’s loans
 Protect members loans
 Value added services
 Capacity building in terms of soft skills
MFI Role in Rural Insurance
Opportunity
 New channels of business
PROPERTY RISKS
 Vehicle




2 Wheeler
Personal car
Commercial vehicle
Tractor
 Property




PEOPLE RISKS
For Members / Employees
 Accident/ Injury
 Health & Hospitalization
Home/ Hut
Shops & Outlets
Schools
Machinery/ Pump-set
22
Our Milestones





NGO/MFI/NBFC

Indira Kranthi Pathakam – Vishakapatanam

Grameen Koota – Karnataka

Nava Karnataka Rural Development Society - Karnataka
Private Dairies

Dolphin Dairy – Andhra Pradesh

Creamline Dairy Products Ltd
Co Operative Dairies

Baroda Dairy - Gujarat

Amul Dairy –Gujarat

Mehsana Dairy - Gujarat
Government Projects


Cross Section of our Strategic Tie-ups:
LDB/LDA Projects – UP, Haryana & Rajasthan, Madhya Pradesh, Maharastra and Chhattisgarh
Our cattle insurance program for IKP project in Visakhapatnam, Andhra Pradesh - which was
a case study by itself - was well appreciated by World Bank and was a discussion forum topic
at the World Bank Workshop on
"Access to Insurance for the Poor," at Rio de Janeiro, in May, 2007
Tata AIG Presence
Existing
Sales Offices: 84
Branch Offices
POS
E-Franchisee
Local Office:
Tata AIG General Insurance Co Ltd
II Floor, My Home Tycoon,
Greenland’s, Begumpet
Hyderabad 500 017
Email id: kumar.kiran@tata-aig.com
Phone No 040 66575914
Mobile No 098855 22555
Appreciation from partners
Together We Can !!!