A standout feature of this new scheme is the provision for full compensation in the event of animal loss, a notable improvement over the previous cap of Rs 20,000. This increased coverage offers far greater security to farmers whose economic well-being is intrinsically linked to their livestock. The Animal Resource Development (ARD) Minister, Sudhangshu Das, emphasized that while livestock rearing is vital to the rural economy, it has historically been neglected, making this scheme a pivotal step towards empowerment and economic security for dairy producers and other animal husbanders.

The scheme features a highly subsidized premium structure, making it accessible to a wide range of farmers. Beneficiaries will contribute just 15 percent of the total insurance premium, with the central government covering 70 percent and the state government contributing the remaining 15 percent. Premium rates vary based on the policy term: 3.39% for one year, 6.6% for two years, and 8.3% for three years, offering flexibility for dairy farmers to choose suitable coverage.

For calculation purposes, the scheme defines a “livestock unit” where one cow or buffalo equals one unit, and ten goats or sheep, or five pigs, are also considered one unit. A single family can insure up to 10 such livestock units. The insured value of dairy animals is determined either by their milk output—Rs 3,000 per litre of milk for cows and Rs 4,000 per litre for buffaloes—or by an assessment from a government veterinarian, ensuring fair valuation for dairy cattle.