Home » INSURANCE » Definition of Cattle Insurance

Definition of Cattle Insurance

Cattle Insurance – Cattle insurance is a contract that the insured enters into with the insurer to receive compensation for financial loss caused by an accident or death. According to other insurance policies, cattle insurance contract is also considered as a contract of compensation. However, there is more fear of moral risk than other insurance. This is because in most cases the insured has negligence or ignorance about the health of the animal and the disease. Cattle insurance is usually one year term. Stays.

If the insured animal dies within that period due to an accident or disease, the insured will get insurance compensation. In this case, cattle refers to cows, buffaloes, goats, sheep, horses, elephants, etc.

Below are some of the views expressed by some scholars on Cattle insurance.

According to Professor M.N. Mishra,

“Cattle insurance policy is the policy provides indemnity against the lose of Cattle by death resulting either from accident or a disease specific in the policy.” Compensation caused in the insurance policy without the specific accident or death of an angry cattle is called cattle insurance.

According to Professor Kanwal,

“Under the scheme of Cattle insurance, the insurance company | agrees to indemnity the loss caused to the owner by the death of livestock.” That is, livestock insurance insurance. The company agrees to compensate for the death of the cattle.

By discussing the above definition, the following features of cattle insurance can be found in:

Cattle insurance is a type of compensation agreement.

  • As livestock is a valuable asset, property insurance rules are applicable in this case.
  • In this case, only the risk due to the reasons written in the insurance policy is done.
  • Only a person who has an insurable interest can take this policy.
  • The term of the insurance contract is a maximum of one year.

In conclusion, those who depend on livestock for their livelihood become financially helpless in the event of death or loss of livestock. Such financial helplessness can be overcome through livestock insurance.