Livestock Insurance in India: How to Insure Your Cow or Buffalo, What It Costs and How to Claim

Livestock insurance in India pays you the insured value if your insured animal dies from disease, accident, flood, fire or similar causes. Under the government scheme run by the Department of Animal Husbandry and Dairying (the Pashudhan Bima Yojana, part of the National Livestock Mission), you pay 15% of the premium and the government pays 85%. Subsidy covers up to 10 cattle units per household, and one cow or one buffalo is one cattle unit. The animal needs a 12-digit ear tag, a vet check and a value agreed with the insurer. Claims need the policy, claim form and post-mortem report.

Livestock insurance is a policy that pays the owner the value of an animal if it dies from an insured cause such as disease, accident, flood, fire or lightning. The official portal of the Department of Animal Husbandry and Dairying (DAHD) describes it as financial protection against the loss or death of animals from unexpected events.

The DAHD portal FAQ gives the plain definition: animal insurance, also called livestock insurance, protects farmers and animal owners against the loss or death of their animals. It lists the risk covered as "any eventual loss of animal due to death". That is the heart of it. This is a death cover. It is not a health plan that pays vet bills, and it is not an income plan that pays for lost milk.

The National Livestock Mission guidelines of January 2025 give the purpose in two lines: to manage the life risk of farmers by protecting them against loss of animals due to death, and to show people the benefit of insuring livestock. The government pays most of the premium so that a small farmer with two buffaloes can afford the cover.

The cover matters because one animal can be most of a family's savings. If it dies without insurance, the family may have to borrow to buy a new one, and a loan taken for the animal may still be unpaid.

There are two routes. The first is the government scheme, the Pashudhan Bima Yojana, which is the livestock insurance activity of the National Livestock Mission, with an 85% premium subsidy. The second is a commercial cattle policy sold by general insurers at the full premium. Some states also add their own schemes on top.

The PIB reply in Lok Sabha on 25 March 2025 adds that livestock insurance under the National Livestock Mission works on a demand-driven basis and that the department is encouraging states to send proposals. In plain words, the scheme runs where the state has set it up and picked an insurer. The insurance company page on the portal lists an insurer and a nodal officer for each state or Union Territory that has one. For example, it shows the Agriculture Insurance Company of India for Maharashtra and Tamil Nadu, and United India Insurance for Kerala and Odisha (page opened 13 Nov 2026). If your state is not on that list, ask the district animal husbandry office what is running locally.

The PIB reply also gives two numbers worth knowing. It says 21.01 lakh livestock had been insured in that financial year up to the date of the reply, and it quotes the 19th Livestock Census at 10.08 crore households with livestock or poultry. So only a small share of animals is insured. That is why the department says it is working to widen cover.

Yes, buffaloes are insured the same way as cows. The DAHD portal FAQ says indigenous and crossbred milch animals, pack animals (horses, donkeys, mules, camels, ponies and male cattle or buffalo) and other livestock such as goat, sheep, pigs, rabbit, yak and mithun fall under the scheme.

The commercial products are similar. The New India Assurance cattle page lists milch cows and buffaloes, calves and heifers, stud bulls, bullocks and castrated male buffaloes, whether indigenous, exotic or crossbred. The Universal Sompo wording lists the same cattle and adds pig, goat, horse, mule, donkey, sheep, pony and yak.

Poultry is not named in the portal FAQ list. If you keep birds, the live poultry farming guide explains vaccination, biosecurity and the kind of risk fund that NABARD models recommend. Winter care for birds is covered in the poultry management in winter post of this series.

Under the government scheme you pay 15% of the premium. The premium itself cannot go above 4.5% of the sum insured for one year in normal areas, and 5.5% in north-eastern and Himalayan states, according to the January 2025 NLM guidelines. So the most you could pay for a one-year cover is under 1% of the animal's value.

The NLM guidelines state that under no circumstances may the premium rate exceed the ceilings below. The rate you actually get comes from the insurer chosen in your state, and it can be lower than the ceiling. Your receipt shows the true figure.

Here is what that means in rupees. These are examples at the ceiling rate, not quotes. Suppose a crossbred cow is valued at Rs 60,000 and a buffalo at Rs 80,000.

Notice that three years cost about 2.4 times the one-year premium (11% against 4.5%), not three times. The guidelines say efforts should be made to insure animals for at least three years rather than one. The guidelines also say service tax, if it applies, is to be paid by the beneficiary or the state as per the rules in force, so ask what is added to your receipt.

A commercial policy is priced by the insurer and the animal. The New India page and the Universal Sompo wording do not print a rate, so no number is given here. Get the quote in writing before you pay.

The animal is insured at its current market value. You and the insurer agree this value together in front of a veterinary officer, says the DAHD FAQ. The guidelines set a floor for milch animals: at least Rs 3,000 for each litre of daily milk yield for a cow and Rs 4,000 for a buffalo, or the local government-declared price.

The guidelines (Appendix VI) explain the logic. For pack animals and other livestock, the value is agreed by negotiation between the owner and the insurer with a vet present. If you disagree on price, the guidelines send the dispute to the Gram Panchayat or the Block Development Officer.

These are the minimums for the valuation. The market price in your area can be higher, and the guidelines allow the local government-declared price instead. Do not under-insure to save a few hundred rupees on premium. On a claim the payout depends on the sum insured. The Universal Sompo wording says a death claim pays the market value on the date of death as certified by the vet, up to the sum insured. If a disease runs for some time before the death, it takes the market value from before the illness.

A cattle unit is the counting rule for the subsidy. One cow or buffalo is 1 cattle unit, 10 sheep or goats are 1 unit, and 5 pigs or rabbits are 1 unit. The subsidy covers up to 10 cattle units per household. You can insure more animals by paying the full premium for the extra ones.

The DAHD FAQ gives the same rule and adds that a beneficiary with more than 10 cattle units may still insure the extra animals without subsidy. The NLM guidelines say a household here means the same as under MGNREGA, so one family unit gets one limit, not one per family member.

The guidelines also say that a beneficiary with fewer than 10 animals, or less than one cattle unit, can still use the subsidy. A farmer with a single goat is not shut out. For pig and rabbit the guidelines state a lower limit of 5 cattle units per household.

You register on the Pashudhan Bima Yojana portal with your NDLM-registered mobile number and one valid ear tag number of the animal, choose the tag numbers to insure, and submit the form. The portal FAQ gives the full list of steps, and the vet check and valuation follow as part of the process.

The DAHD livestock insurance portal home page sums it up in three steps: register, get insured by selecting livestock by tag number, and claim online. Here is the detailed list from the FAQ page.

1. Open and log in to the 1962 / NDLM mobile application.
2. Tap the "Livestock Insurance" link on the dashboard. It takes you to the Pashudhan Bima Yojana portal.
3. Register with your NDLM-registered mobile number and one valid ear tag number of the animal.
4. Check and confirm your communication address.
5. Select the animals (by tag number) you want to insure.
6. Submit the application. It goes to the next stage for verification.
7. Log in again with the same mobile number to track the status of your application.

The guidelines add what happens on the ground. The vet must examine the animal, the value is assessed, the animal is tagged and the owner pays the beneficiary share. The cover starts once these basic steps are done. Two photographs are attached to the proposal: one of the animal with the owner, and one of the animal with the ear tag clearly visible.

So before you start, keep ready your registered mobile number, the animal's ear tag number, a clear photograph of the animal with its tag, and a photograph with you standing next to it. If your animal has no tag yet, ask the nearest government veterinary centre. The guidelines say the 12-digit tag is generated by NDDB, and an animal already tagged in another programme need not be tagged again.

Yes, to a large extent. The government scheme runs on a DAHD portal: you register, pick the animal by its tag number and apply online, and you can track the status and raise a claim online too. A vet must still examine the animal, and the animal must still carry a tag, so the field visit does not disappear.

The portal home page says 90% of claims are settled within 21 days of submission. Treat that as the department's stated target. The rule written in the FAQ is settlement within 21 to 25 days after all documents are in.

For a commercial cattle policy, the insurer's own office or website is the route. Some insurers may sell online, but the animal still has to be examined and tagged before the cover starts, so ask how they will do that for your village before you pay.

One more point on logging in. The portal FAQ says you log in with the mobile number registered with NDLM. If your number is not registered, the first step is to get it registered through the 1962 / NDLM app or the local veterinary centre. Do not let a middleman use his own number for your animal, because claim messages would go to him.

Basic cattle insurance pays if the animal dies from an accident (including fire, lightning, flood, storm, earthquake and cyclone), from a disease it catches during the policy period, from a surgical operation, or from riot and strike. Extras such as permanent total disablement or theft are paid for separately.

The New India Assurance page and the Universal Sompo wording list almost the same perils. Both say the death must be caused by one of these events. The government scheme itself says "any eventual loss of animal due to death" in the portal FAQ.

Remember that these two documents come from commercial products. The government scheme's own terms are issued state by state through the insurer chosen in your state, and the policy paper you receive is the final word on what your cover includes. Ask for the policy wording, in your language, before you pay.

The usual exclusions are wilful injury or neglect, overloading, wrong treatment, use for a purpose not stated in the policy, illness or accident that existed before the policy, intentional slaughter, theft or secret sale, war and riot-related loss, and disease contracted in the first 15 days. Claims without the ear tag are also refused.

These come from the New India page and the Universal Sompo wording. The two lists match on most points. Here they are in one place.

Pleuropneumonia is a good example of why you must read your own policy: one insurer excludes it only in two named Assam districts, another excludes it everywhere. For goat and sheep, the Universal Sompo wording also lists diseases such as sheep pox, goat pox, foot-and-mouth disease and anthrax as covered only if the animal was successfully vaccinated and the vet certificates are supplied. Keep your vaccination records.

The ear tag is the animal's identity for the insurer. The guidelines call for a 12-digit unique ID generated by NDDB, and the New India page says "No Tag, No Claim" is strictly applied. A lost or cut tag can end a claim, so protect it and report any loss at once.

The Universal Sompo wording lists claims received without ear tags as an exclusion and asks for the intact tag or microchip, verified by a sensor or meter, along with a photograph of the dead animal with its tag. It adds that if a tag is lost during the policy period, you must inform the company immediately and have the animal retagged.

• Keep a photograph of every insured animal with its tag visible, taken on the day of insurance.
• Write the tag number in your phone, on the policy paper and in the dairy diary.
• If a tag falls off or is torn, call the insurer and the veterinary centre the same day and ask for retagging.
• Do not bury or dispose of the carcass before the vet has examined it and the tag is removed and kept safe.
• If you sell an animal, ask the insurer about transfer of the policy. The guidelines say the benefit for the remaining period must pass to the new owner, with steps agreed in the insurer's contract.

Inform the insurer at once, get a vet to examine the animal and give a death certificate, arrange a post-mortem, and then raise the claim on the portal "My Claims" button with the documents. The guidelines say only four documents are needed: intimation, policy paper, claim form and post-mortem report.

The portal FAQ gives the portal steps. Log in with your NDLM-registered number, open "My Claims", fill the claim form, upload the supporting documents and submit. Here is the full order of work, put together from the portal, the guidelines and the two insurer documents.

1. Call the insurer or its nodal contact the same day. The New India page says the insured must promptly inform the company of the death.
2. Ask the government or panel veterinarian to examine the animal and issue a death certificate in the insurer's format.
3. Get the post-mortem done and take the post-mortem report. The guidelines provide a honorarium of Rs 125 for the vet for this, paid through the mission, so ask the officer what is needed before paying anything extra.
4. Take photographs of the animal and its ear tag.
5. Keep the tag safe. Do not sell, throw away or bury the carcass before the inspection.
6. Log in to the portal, open My Claims and fill the form. Upload the documents.
7. Keep the claim number, a screenshot and the SMS messages.

In a theft or foul-play case, the Universal Sompo wording asks you to report to the local police at once. For a commercial policy, expect to give a statement and photographs. Do not promise anything to a third party on the insurer's behalf.

One more rule from the guidelines: no claim is considered before 21 days from the date the policy was issued. The two insurer documents also bar disease deaths in the first 15 days. Plan for that early gap when you buy.

The portal FAQ says a claim should be settled within 21 to 25 days after all documents are submitted. If the insurer is late, it must pay 12% compound interest a year to the beneficiary. A rejection or delay must be justified in writing, and the guidelines say the district monitoring committee is informed.

The guidelines also say the beneficiary should get the full sum insured if the animal dies. Where there is a delay or a rejection, the insurer has to give full reasons to the claimant, with a copy to the District Monitoring Committee and the state implementing agency.

If nothing moves, there is a regulator route. The guidelines say default in settlement or deficiency in service should be brought to the notice of IRDAI. The IRDAI policyholder complaint page lays out the steps: first complain to the insurer's Grievance Redressal Officer in writing and get a dated acknowledgement. The insurer should resolve it within two weeks. If it does not, or you are unhappy, you can register on the Bima Bharosa portal, email complaints@irdai.gov.in, or call the toll-free numbers 155255 or 1800 4254 732. The page also lists an Ombudsman option.

The IRDAI page notes that it only entertains complaints from the insured or the claimant, not from agents or third parties on their behalf. Keep the complaint in your own name.

I could not find an official rule that makes livestock insurance compulsory for every cattle loan. The government scheme is voluntary and demand-driven. Your bank may still ask for it as a loan condition in its own policy, so ask the branch in writing which cover it wants and whether the government scheme counts.

Here is what the opened sources say. The PIB reply calls the activity demand-driven. The DAHD FAQ says all livestock owners are eligible. A bank page, such as the Indian Bank KCC page for animal husbandry, lists eligibility, collateral and interest, and does not mention animal insurance at all. Some NLM project components do include one year of insurance as part of the project: the guidelines say it must be provided under the approved scheme, with the farmer paying 15% of the premium.

If you are borrowing for animals, two live posts help. The Kisan Credit Card guide explains that KCC was extended to animal husbandry, dairy and fisheries working capital, with an interest benefit limit of Rs 2 lakh for allied-only activity. And the PMEGP loan post states that a dairy unit is an eligible activity and lists the subsidy shares. Neither post claims that insurance is mandatory.

Even when the bank does not force it, insurance can protect a loan taken for the animal. If the animal dies, the claim money helps the family cope with the loss instead of carrying the whole debt alone.

I found no official source for a Rs 2 crore subsidy for cow farming. The National Livestock Mission guidelines I opened give capital subsidy of 50% of project cost, up to Rs 50 lakh per unit, for components such as sheep and goat, horse and donkey units. Cow dairy loans usually run through banks, KCC and PMEGP.

The National Livestock Mission subsidy post explains the 50% back-ended capital subsidy for goat, poultry and pig units, and who can apply. If you see a post or video that promises Rs 2 crore for cows, ask for the scheme name, the order or guideline number and the official website. If it cannot give those three, do not pay any "registration fee".

Insurance is separate from all of this. It does not give you a grant. It pays only if an insured animal dies, and it pays the insured value, not a lump sum. For a bigger picture of schemes, the agriculture subsidy schemes guide and the agri schemes calendar are the places to look.

Livestock insurance covers the death of an animal. Crop insurance covers loss of a notified crop. They are separate schemes with separate portals, premiums and claim steps. A farmer who has taken crop insurance under PMFBY still has no cover for the cow in the shed unless the cow is insured separately.

The live PM Fasal Bima Yojana post describes PMFBY as insuring notified crops against natural causes, and it does not mention livestock. The weather based crop insurance post is about crops too. Neither is the answer for a dead buffalo.

In simple words: a cow and a wheat field need two different policies. If you grow crops and keep animals, you need to look after both covers on their own terms.

The most common mistakes are a missing or lost ear tag, a late report to the insurer, a carcass disposed of before the vet saw it, insuring an animal that is already sick, and under-insuring the value. All of these come straight from the documents quoted above, so each one is avoidable if you act early.

Keep your vaccination records for every animal too. They help with vet certificates and with the disease conditions that insurers write into their policies, and prevention is always cheaper than a claim.

Conclusion

Livestock insurance in India is a death cover for your animal, and the government scheme makes it cheap: you pay 15% of the premium, the Centre and the state pay 85%, for up to 10 cattle units per household. Cows and buffaloes are both covered. Get a vet check, an ear tag, a fair value (at least Rs 3,000 per litre of daily milk for a cow, Rs 4,000 for a buffalo), and keep the policy, tag photographs and mobile number safe. If the animal dies, inform the insurer at once, get the post-mortem, and claim on the portal. If the insurer delays beyond 21 to 25 days, use the IRDAI complaint route.