Tata AIGRural & Social

Initiative

Kiran Kumar K -Tata AIG

Cattle Insurance

Rural Market Segmentation

Rich 2%

Mid-Income20%

(Average Landholdings /

Small Entrepreneurs)

HH Income >$6/day (Annual Saving

Rs.50,000/-)

Above Poverty Line (APL) – 50%

(Very Marginal / No Landholding) HH Income < $3/day (Annual Saving

Rs.3000/-)

Below Poverty Line (BPL) – 27%

(Landless / Self Employed) HH Income < $ 1/day (Annual Saving Rs.500/- to1000/-)

•>20 acres Land•> 4 Cattle, Poultry•Tractor•Car, 2Wheeler, Cycle•RCC Home•TV, Fridge, AC•Telephone

•< 5 - 10 acres Land•< 3 Cattle, Poultry•2Wheeler, Cycle•Tiled / RCC Home•TV

•< 2 acres Land•1 Cattle, Livestock•Unorganized Labor•Skill based Occupation•Hut / Tiled Home

•Landless Laborer•Unorganized Laborer•Semi-Skill Occupation•Hut

•Crop Ins•Cattle farm, Poultry•Tractor Ins•Car, 2Wheeler Ins•Home Ins•IPA Ins•Health Ins•Travel Ins•Life Ins

•Crop Ins•Cattle farm, Poultry•2Wheeler Ins•Disaster Ins•IPA ins•Health Ins•Life Ins

•Cattle Ins•Sheep / Goat Ins•Hut / Disaster Ins•GPA Cover•Micro Health Ins•Life Ins

•Hut / Disaster Ins•GPA Cover•Micro Health Ins•Life Ins

FinanceMFINGOSHGDairyingCoop. DairyPvt. Dairy

Finance:Comm/ Rural BankCoop Bank, PACSAgriculture:Rice MillsAgri. DealersDairying:Coop. DairyPvt. DairyOthers:Rural AgenciesRural Agents

DemographicsRisks / Insurance

Channel

Micro Ins Segment - Bottom of Pyramid (BOP)

HIG/ MIG Segment - Top of Pyramid (TOP)

•650,000 Villages•800 m Population

Micro Insurance – Generally Group Biz

Market Potential – Cattle

India has the largest cattle population in the world approximately 283

million cattle, constituting 30% of the worlds cattle population.

Cattle in India is predominantly buffalo. Cows make up 30% of the

cattle population

India is the largest producer of milk (100 Million Tones). Even with

per capita milk production being one of the lowest in the world

It is one of the few countries where cattle is considered holy and

revered with religious fervor.

It drives the secondary economic activity in rural India. The primary

being agriculture.

Cattle Insurance - Product

Provides comprehensive cover to cattle against death due to

Diseases

Accidents

Natural calamities

Riots, Malicious damage,

Terrorism

Permanent loss of milk yielding

capacity due to disease

For Cow, Buffalo, Stud Bull

EXCLUSIONS

Intentional slaughter of the animal

Missing, Theft and/or clandestine sale of

the insured animal

Partial Disablement of any type, whether

temporary or permanent

Permanent Total Disablement (PTD) -

incapacity to conceive or yield milk

War, nuclear material or weapons.

Consequential loss of whatsoever nature

Claim arising due to disease contracted

within 15 days from risk date

Claims received without intact Ear tag

Issuance Process

Identification of Cattle is key to successful implementation of cattle insurance

Identified with unique numbered polyurethane (PU) Ear-tags This is done by proper Tagging of the animal at the time of acceptance for insurance

Issuance Process

Tagging shall be done by trained officer

Check and confirm the health of the animal

Tag the animal successfully with PU tag

Digitally photograph the animal along with the insured

Front View

Identify Tag No. Identify shape of

horns Identify facial

colour and marks

Side View

Identify the owner along with the animal

Identify health of the animal

Identify the colour and marks on the animal

Rare View

Identify the udder of the animal

Identify the shape of the legs

Identify the health of the animal

Identify colour and marks on the tail

Adverse Selection

Adverse Selection

Issuance Process

Prepare the Schedule of animals tagged for insurance

Pro

posa

l cum

Sch

edul

e F

orm

Issuance Process

Hand over a vernacular pamphlet on animal care and contact info in event of claim.

Proposal form (Hard/Soft Copy) and Digital Photographs to sent to the insurance company within the next 48 hours

In the event of claim field staff will intimate the insurance company on the Toll free No.

Field staff will help the surveyor in identifying the animal and facilitates necessary documentation.

Issuance ProcessRetagging

Inform the Insurance Company immediately Arrange for retagging the animal Digitally photograph the animal once again Fill up a fresh proposal cum schedule and submit

the same along with the photographs.

Claims Settlement

Experience with various set ups: NGO/MFI/NBFC

Private Dairies

Co Operative Dairies

Government Projects

Claims Settlement

All genuine claims have been settled with 15 working days

Proper underwriting ensures profitability in the long run to

The Insured The Partner Then Insurance company

Our StrengthsThe salient features of our service

We fundamentally believe in standardization of services up to the

last mile

Our product strength lies in our capacity to customize processes, which

mitigates hardships in verification for insurance and reporting of claims.

We will ensure proper risk management and consequently a better

portfolio which is fundamental to a successful Insurance program.

Our hi-tech risk management expertise will help reduce premium

rates in the long run, much to the benefit of the customer.

Claim Surveyor network across the country.

In house claims process for faster settlement.

MFI Role in Rural Insurance

Strength

Trust-worthiness Knowledge of rural markets Well spread out Network Network at affordable cost Large customer base

MFI Role in Rural Insurance

Benefits Secures MFI’s loans Protect members loans Value added services Capacity building in terms of soft skills

22

MFI Role in Rural Insurance

PROPERTY RISKSPROPERTY RISKS Vehicle

2 Wheeler Personal car Commercial vehicle Tractor

Property Home/ Hut Shops & Outlets Schools Machinery/ Pump-set

PEOPLE RISKSPEOPLE RISKS

For Members / Employees

Accident/ InjuryHealth & Hospitalization

Opportunity New channels of business

Our Milestones Cross Section of our Strategic Tie-ups:

NGO/MFI/NBFC Indira Kranthi Pathakam – Vishakapatanam

Grameen Koota – Karnataka

Nava Karnataka Rural Development Society - Karnataka

Private Dairies Dolphin Dairy – Andhra Pradesh

Creamline Dairy Products Ltd

Co Operative Dairies Baroda Dairy - Gujarat

Amul Dairy –Gujarat

Mehsana Dairy - Gujarat

Government Projects LDB/LDA Projects – UP, Haryana & Rajasthan, Madhya Pradesh, Maharastra and Chhattisgarh

Our cattle insurance program for IKP project in Visakhapatnam, Andhra Pradesh - which was

a case study by itself - was well appreciated by World Bank and was a discussion forum topic

at the World Bank Workshop on

"Access to Insurance for the Poor," at Rio de Janeiro, in May, 2007

Branch OfficesPOS

E-Franchisee

ExistingSales Offices: 84

Tata AIG Presence

Local Office:Tata AIG General Insurance Co LtdII Floor, My Home Tycoon,Greenland’s, BegumpetHyderabad 500 017Email id: kumar.kiran@tata-aig.comPhone No 040 66575914Mobile No 098855 22555

Appreciation from partners

Together We Can !!!