Jammu Kashmir State rural livelihood mission

Umeed

Interim cattle insuranceBy Arun ManhasMission Director

9th June,2014

Why Cattle Insurance?• No outside insurance agency coming forward to

provide policy to the livestock units of SHGs• If an animal dies the particular SHG women who took

loan to overcome poverty will again be put to financial distress.

• The insurance is meant for unpaid Loan installments only

• If the animal died after completion of repayment of loan installments the scheme will not be applicable.

• Umeed has come out with interim cattle insurance policy

Who is eligible?

• SHG women who took loan for livestock (Except Poultry form)• SHG women who paid @ 3%

Premium on loan amount to CLF• SHGs which paid Rs 3000/- VRF

Contribution to VOs i.e Rs 100 Per SHG Member for 3 Months

What is the Benefit

• Suppose the animal died when there are dues to be repaid by the beneficiary the balance loan installments will be waived off• The same member will again be

eligible for new loan on priority basis

Process of Premium

RF

R

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ursem

ent

Acc

ept &

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rward

C

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ithV

O

Res

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Accept & Forward Claims with Photos

Reject

Reject

CLF

VO

+ 2 Days

+ 2 Days

Dea

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f An

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l

Reject

SHG Member

SHG

1 Day

BANK

+ 2 Days

Bank Loanl

CATTLE INSURANCE PROCESS CYCLE

Operational Guidelines

How to insure cattle & small ruminants ? Step by step process guidance–For field

functionaries

Livestock key register is to be maintained at the CLF/VO office. This register should show details of livestock grounded using RF, CIF, VO loan& Bank linkage. It should be maintained in the following format:

Livestock Key Register Format

SHG level processes• The death of the insured animal should be

communicated by the member beneficiary of SHG within 1 day to the concerned SHG leader.

• SHG will submit the claim in form no 2 to the concerned VO within two days of the death of the animal.

The photograph of the dead animal & beneficiary should accompany the claim.

VO level processes

• After receiving the claim, VO will convene an emergency meeting of its executive committee and direct the loan /asset verification committee for scrutiny of the claim on the following lines:

• Is the claim submitted pertains to the animal insured as per the Livestock key register available with the VO- Yes/No

• Cause of the death- natural / accidental.• No of loan instalments Paid: To be paid:• VO sub committee will submit its report in in Form no ----within

2 days of receipt of claim from SHG.• Based on VO sub committee report, if the claim is genuine, the

VO will pass a resolution for settlement of claim and forward to CLF with in 2 days.

• If the claim is not found to be genuine, VO will reject it duly recording reasons for rejection and inform the member in person .

CLF Level Processes• CLF would verify the claim submitted by the VO in its executive committee and

pass resolution accepting the claim. steps to be followed are as follows:• The CLF would pass resolution to repay balance loan amount of the beneficiary

which could not be repaid due to death of the animal from the cattle insurance fund available with the CLF.

• The CLF would communicate copy of the resolution to the concerned VO. • The VO will retain the amount if the loan is from RF/CIF/CIF-2/VO loan. • VO will release the amount to the concerned SHG account if the animal is

purchased with Bank loan. The SHG would withdraw the amount and repay to the bank.

• If the claim is rejected ,reasons should be written in the minutes book and the reasons for the rejection should also be communicated to the VO.– VO in turn will apprise the member about the reasons for the rejection orally

and in writing. • CLF level Settlement (accept/Reject) should be completed within 2 days of

receiving claim.• Once the claim is settled final entries should be made in the Insurance key register

at the VO/CLF level.• All functionaries and CBOs involved in settlement should strive to complete the

settlement within 1 week.

Documentation

Format 1ToThe President________________________ SHG I, -------------------------- wife / daughter / of -------------- , is a member of --------------- SHG. I availed loan of Rs. ----------------/-

from (RF /CIF/ Bank loan/ VO loan) in the month of -------------- year ---------- towards investment --------------- as a livelihood. I have agreed to repay the loan in --------- installments at the rate of Rs. ----- per month. After availing load from my SHG, I have purchased --------- cattle / sheep / goat and the same have been insured under the cattle insurance policy of Umeed. I have paid the cattle insurance premium on the above through my ------------- VO to the CLF.

I have been regular in repayments till date. As on this date, I have made ----- monthly repayments. Unfortunately, the

cattle / sheep /goat I have purchased out of loan, has expired on ------ (date). I have immediately reported the loss of cattle / goat / sheep to my other SHG members. I would like that insurance may be claimed on my cattle against my outstanding loan on purchase of cattle /goat / sheep to the SHG.

Total No of Installments :Installment Amount/Month : No of Installments completed :Date & Time of Death of Animal :][Reason of Death :Time of intimation to the SHG : Signature of the Member Beneficiary

Format 2 ToThe President________________________ Village Organization

The__________________________ SHG in regard to Cattle Insurance claim proposal of ____________________(Name of the member beneficiary)who has paid insurance

premium herewith forward the request to VO for verification through the VO loan sub-committee. VO may follow up with CLF for reimbursement of outstanding loan to our SHG. On receipt of outstanding loan amount from the CLF against cattle insurance, the member will be discharged of outstanding loan amount and will be considered for fresh loan to augment livelihood.

The details of the member beneficiary mentioned in the format 1 attached herewith.

President Secretary (Signature) (Signature)

Format 3

Verification Report ToThe President________________________ Village Organization We, Sub Committee of VO after completion of our filed visit in regard to Cattle Insurance claim of

_________________________ (Member Beneficiary) are submitting the verification report for further action. We are furnishing the details found during our visit Name of the Member:Name of the SHG:Date & Time of Death of Animal:Type of Animal:Tag No/Insurance No:Photograph clicked: AttachedCause of Death: Natural/ AccidentalBeneficiary paid premium @ 3% on Loan: Yes/NOSHG Contributed VRF(Rs 3000) to VO: Yes/NoThe claim is as per the Master Key Register: Yes/NOAmount of Loan to be repaid: Rs _____________ Witness1. (Name & Designation)2. (Name & Designation) Name & Signatures of the Sub Committee1.2.3.

Format 4

ToThe President________________________ Cluster Level Federation

The ___________________________(Village Organization) after complete verification of the insurance claim proposal of the ______________________(Member beneficiary) of ______________________SHG by the Asset Verification/Loan Sub Committee recommend the proposal for reimbursement of outstanding loan to the SHG by duly settling the claim under Umeed Cattle insurance Policy.

We are furnishing the details of the proposal as well Verification Committee Report for further action in the given format 1,2 & 3.

Name of the Member Beneficiary:Name of the SHG:Name of the VO:Outstanding loan amount / No of installments Outstanding:Remarks by VO:

After due verification by the asset verification committee it is found that the livestock had died due to genuine reason i.e.________________ (Natural/Accidental) death. Hence we are recommending the case to be considered under Umeed Cattle insurance policy and release an outstanding loan amount to the _________________________ SHG.

President Secretary

(Signature with Seal) (Signature with Seal)

Current Status

S.No Particulars Block Basohli

Block Chenani

1 No of Applications received for claim 3 12 No of Applications accepted for claim 3 13 No of Applications rejected 0 0

4No of SHG Members got benefitted under Umeed Insurance 1 1

5Amount of Rs Waived of so far in entire block since inception of the scheme (in Rs) 20000 25000

6 No of villages applied for insurance scheme 1 1

S.No Particulars

Block Basohli

Block Chenani

1 No of Livestock units grounded 2891 1810

2 No of Livestock units got insured 18 19

3Total Insurance Amount (@ 3%) Pooled up 10500 11000

4 No of SHGs received VRF 511 292

5Amount received so far under VRF(in Lakhs) 51.10 29.2

6Cattle Insurance Fund Pooled up at CLFs (in Lakhs) 10.22 5.84

Case Study 1Name of the Member Beneficiary Shanti Devi

Name of the SHG Jai sriram Name of the VO KosarCLF Cluster ABlock Chenani (Dist Udhampur) Livestock Unit: VO Loan: Rs 25000Own Contribution: Rs 10000

Buffalo, Cost of Rs 35000/-

Date of Loan Sanctioned 15th July 2014Date of Death of Animal 1st Aug 2014Reason of Death during delivery timeAmount Repaid 0Loan Waived off Rs 25000/-

Case Study 2Name of the Member Beneficiary Bhano Begam

Name of the SHG Quaza Garib Navaz Name of the VO UjalaCLF Aakash CLF – Cluster ABlock Basohli (Dist Khatua) Livestock Unit: VO Loan: Rs 30000Own Contribution: Rs 10000

Buffalo, Cost of Rs 40000/-

Date of Loan Sanctioned 22nd June 2014Date of Death of Animal 10th Dec 2014Reason of Death AccidentAmount Repaid Rs 10000Loan waived off Rs 20000/-

Case Study 3Name of the Member Beneficiary Javaida

Name of the SHG Pooja

Name of the VO Belu

CLF Aakash CLF- Cluster A

Block Basohli (Dist Khatua)

Livestock Unit: 2 Goats Cost of Rs 10000/-

Reason of Death Died of Leopard attack

Amount Repaid Rs 4000

Loan waived off Case under process

Case Study 4Name of the Member Beneficiary Fatima

Name of the SHG Allah Akbar GroupName of the VO UjalaCLF Aakash CLF- Cluster ABlock Basohli (Dist Khatua) Livestock Unit: 5 Goats

Cost of Rs 20000/-

Reason of Death Died of Leopard attack

Amount Repaid Rs 10000Loan waived off Case under process

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