IFFCO-Tokio General Insurance

Animal husbandry and the dairy sector play an important role in the socio-economic development of India and protect poor farmers against shocks such as drought or famine. These livelihoods provide a major source of income to a large number of landless and rural people. In this context, livestock insurance is a critical service to mitigate the loss associated with the death of the animals. However, the claims for livestock insurance are often high due to the prevalence of moral hazard and fraud, reducing the availability of affordable coverage.

The project aims to test a model to reduce fraud by using an identification device placed under the hide of the animal (based on RFID technology - Radio Frequency Identification). The current means of identifying the insured animal is through ear tags, which can easily be lost or removed. By reducing fraudulent claims, the technology can benefit farmers through lower premiums to reflect the reduced claims. Additionally, the technology, used to store information about livestock such as vaccinations, can support the cooperatives and milk unions to improve herd management. The advent of more sustainable livestock insurance can also promote more product development, and invite other actors to enter the sector.