Community Managed Micro Insurance

Andhra Pradesh

Cattle Insurance

Livestock is the primary livelihood activity as well as asset for resource poor households in rural AP. In addition to that, more than 40 percent of rural credit flow is towards supporting the livestock sector and hence managing the risks within the sector is very critical. Moreover, a substantial amount of the loans transacted among the SHG members are for the purpose of purchase of Milch animals. The untimely loss due to death of an animal, which they consider as a source of income, is rendering the SHG women helpless with regard to loan repayments. The livestock insurance leverages on the capacities built in the community to manage insurance schemes as in the case of insurance against death and disability.


As the livestock insurance is protecting the loans of the poor, it would make the community to stretch the ability of the poor for enhanced asset-creation for continuous livelihoods through livestock insurance.


All the cattle of the SHG women, which have at least once been pregnant.


  • Premium at Rs 4.5 per 100 of the cost of the animal for 3 years ( If Transit Insurance required an additional premium of Rs 0.1 per 100)
  • United India Insurance Company agreed to adopt the simple claim settlement process by allowing Zilla Samakhya to settle the claim 1st and then to refer the claim to United India Insurance for reimbursement of the same within 7 days.