Archive · 17 Nov 2025
India Proposes National Livestock Insurance Scheme to Protect Farmers
Imagine your family's pet or farm animal is like a really important toy or tool that helps your family eat and earn money.
In India, lots of families have these important animals, like cows and chickens, but not many of them are protected if they get sick or die.
The current system for insuring these animals is complicated and hard to use.
India has already made great insurance programs for crops and people's health that use technology to work well.
Now, they want to create a similar big, smart insurance plan for animals.
This new plan, called NLIS, will cover more problems, use technology like digital IDs for animals, and make it easier for farmers to get help when they need it.
It’s not just about the animals; it’s about helping the families who depend on them, especially women farmers, and keeping all the animals healthier in the country.
Over 100 million rural Indian households depend on livestock for livelihood and nutrition, yet less than 2% of these animals are insured.
The current livestock insurance system is fragmented, inaccessible, paper-based, and lacks digital infrastructure, leaving farmers vulnerable to significant loss.
India has successful models for large-scale insurance in crop (PMFBY) and health (Ayushman Bharat) sectors, demonstrating the potential for a similar livestock scheme.
The proposed National Livestock Insurance Scheme (NLIS) aims for comprehensive, tech-enabled protection covering mortality, disease, disability, and productivity loss.
Key features of NLIS include cluster-based tendering, tamper-proof animal identification, integration with digital platforms, and a catastrophic risk fund to enhance rural resilience.
- Who
- Rural households in India, farmers (especially women managing over 70% of the dairy sector)
- What
- A proposed National Livestock Insurance Scheme (NLIS) to provide comprehensive, tech-enabled protection for livestock.
- When
- Proposed for implementation, following the model of successful crop and health insurance schemes.
- Where
- India
- Why
- To protect over 100 million rural households from catastrophic losses due to disease, climate events, and accidents, and to empower farmers.
Current System
Proposed National Livestock Insurance Scheme (NLIS)
Accessibility and Infrastructure
Current System
The current system is fragmented, inaccessible, paper-based, and lacks a digital backbone or institutional architecture for scale.
Proposed National Livestock Insurance Scheme (NLIS)
The proposed NLIS would be tech-enabled, farmer-centric, and integrated with various digital platforms for seamless enrollment and claim settlement.
Coverage Scope
Current System
The existing sub-scheme under the National Livestock Mission is modest and appears to focus primarily on mortality.
Proposed National Livestock Insurance Scheme (NLIS)
NLIS would offer comprehensive coverage for mortality, disease, disability, and productivity loss.
Risk Management
Current System
No specific mechanism is mentioned for managing catastrophic risks beyond individual policies.
Proposed National Livestock Insurance Scheme (NLIS)
NLIS would include a Livestock Catastrophic Risk Fund, reinsured by GIC Re and global partners, to manage large-scale risks like pandemics.
Insurer Participation
Current System
Few insurers currently participate in the existing system.
Proposed National Livestock Insurance Scheme (NLIS)
The NLIS proposes a cluster-based tendering approach to balance risk and encourage broader insurer participation.
- Livestock population
- Over 30 crore animals
- Contribution to global milk output
- Nearly one-fourth
- Current livestock insurance coverage
- Fewer than 2 percent
- Value of India's livestock economy
- Nearly ₹50 lakh crore
- Target insurance penetration
- 10 percent
- Published Date
- November 16, 2025