Prospects of Cattle Insurance in Select Districts of Karnataka

The livestock insurance mechanism is recognized as a highly effective risk mitigation strategy, crucial for safeguarding farmers against uncertainties and potential losses. Despite its advantages, the uptake of cattle insurance among farmers remains notably low. To address this issue, a detailed investigation into the status of cattle insurance and the challenges faced by farmers and other stakeholders was conducted in Karnataka, India. The study involved a sample of 240 dairy farmers, with 80 households each from the Kolar, Shivamogga, and Dharwad districts. Data were collected through personal interviews and analyzed using tabular analysis, the Z-test statistic, the Mann-Whitney’s U test, and the Henry Garrett Ranking Technique. The findings revealed that only 41.25% of the sampled households had insured their cattle. An inter-district comparison indicated that Kolar district had the highest insurance uptake at 66.25%, followed by Shivamogga at 40%, and Dharwad at 17.50%. The analysis further demonstrated that insured farmers typically had a lower average age, more years of schooling, and smaller family sizes compared to their non-insured counterparts. Additionally, insured animals were generally older and belonged to higher lactation orders compared to non-insured animals. Furthermore, the market value of insured animals was significantly higher than that of non-insured ones. The study identified several key constraints contributing to the low adoption of cattle insurance. These included a lack of awareness regarding insurance policies and regulations, limited coverage beyond mortality, discrepancies between insured and actual market values, and complex procedural requirements. Insurance agencies also faced challenges such as difficulties in arranging necessary documentation for insurance claims and ensuring compliance with insurance regulations by dairy farmers. In summary, while cattle insurance provides substantial benefits, its uptake is impeded by several factors. Addressing these challenges through improved awareness and streamlined processes could enhance the adoption rates and effectiveness of cattle insurance in mitigating risks for farmers.