Livestock insurance is providing for against death as a result of an insured peril, such as emergency slaughter or medical grounds and on advice of qualified veterinary surgeon, epidemics, fire, lightning and explosion. Cover may be extended to loss due to theft and transit risks.
Livestock insurance cover includes dairy and beef livestock, sheep, goats, pigs, and horses.
The animal insured is usually to be inspected by a veterinary surgeon. The proposal form asks for details of age, identification marks, breed, species, sex, health, and status of the animal.
Where veterinarians are not available, certificate of health is issued by livestock inspectors will be accepted for purposes of the proposal only.
Blood Stock Insurance
This provides cover for every high value animal mainly horses. It is a minor business line. Animals can be insured on individual basis or collectively. The insured event include mortality, disability, infertility, medical treatment and surgery. The sum insured is based on the market value of the animal. The market value is determined by the prizes that the animal has won or the present value of the future prizes that the animal is expected to win. Any matter that adversely affects the animal’s capacity to win prizes will affect its market value and can result in over insurance.
To deal with the potential moral hazard its practice amongst bloodstock insurers insure a high value animal for only a portion of their market value. Premium rates vary in the range of 0.5 to 10% of the sum insured.
Details of Horse to be Insured
- Name of the horse, colour and sex
- Year of birth
- Sum insured
- History of sickness of the horse e.g. past surgeries, ligament injuries, accidents, contagious diseases and whether it has been attended by a veteran an in the last 12 months
- Details of the proposer e.g. name and address
- Insurance history and details of previous bloodstock claim or losses
- Details of the death or loss of horses over the last three years
- Number of horses owned and number insured
- Details of previous insurance
Exclusions in Livestock and Bloodstock Insurance.
Some of the common exclusions are;
- Epizootic diseases are standard exclusions in livestock policies but may be covered on a limit basis
- Willful misconduct
- Famine or malnutrition
- Feed poisoning
- Prior accidents or diseases
- Animal shows and exhibitions
- Mysterious disappearance