This insurance provides cover against death of animals, like bulls, buffaloes, cows and heifers, arising as a result of accident, disease, parturition or pregnant condition, as the case may be.
The insurance is arranged on a sort of the excess basis, and provides for payment of an amount in excess of a certain other amount which is known as first loss.
The Policy excludes, inter alia, destruction in compliance with any statute or orders of any government or local authority, or because of unfitness or incapacity from fulfilling duties for which the animal is kept.
Any death arising out of castration or other surgical operation is also excluded. The number of animals covered by cattle insurance in India has increased from 2.10 lakhs in 1976 to 43.72 lakhs in 1 980, 160.79 lakhs in 1985 and 256.22 lakhs in 1988-89.