Risk management for a farm includes strategic decision-making. What do you think are the steps involved in the risk management of a farm? Is it just the insurance you’re choosing or going into the details of the processes involved and getting the claims? It’s definitely the latter practice you need to implement while managing risk.
So, here we are with the types and processes involved in livestock Insurance in Australia. The types are for giving you an insight into what risks you need to cover. And the processes are for giving you an idea about the formalities while getting a policy and filing for a claim.
Types of Livestock Insurance
There are mainly two types of livestock insurance policies. Let’s get into the details of each one.
● Livestock risk protection
This policy provides adequate cover for the risk that farm animals are exposed to. It’s applicable for almost every animal, including lambs, cattle, swine, etc. Risk protection is for all those animals who are exposed to outside extremities. This policy is available throughout the year.
● Livestock gross margin
As the name suggests, this policy covers the price reduction in the value of livestock. It excludes the feed costs that you incur regularly. Livestock for a farm is an asset. Like any other asset, with the increasing age, animals’ values deteriorate. So, to cover that depreciation in value, livestock gross margin policy is applicable.
The process involved in filing claims
Now, this might be a complicated process for all the farm owners. It’s because of the inspections of the insured animals that sometimes go in numerous details. So, let’s start with the process.
The concerned animal will be identified in detail when you file the claim. The ear tagging of the animal has to be foolproof. Otherwise, the latest technique is to fix microchips inside the animal during the purchase of your policy. However, you can choose any tag for the animal by giving consent to the insurance company. By the way, you have to take care of your tag on the insured animal.
After the ear tag is validated, a photograph of the animal with the owner with a visible tag is taken. It is used in the insurance claim documentation. Other than that photograph, only for documents are required that include an intimation letter by the insurance company, claim form, post-mortem report, and the insurance policy paper.
If the claim is due after the evaluation of all these documents, the insured has to wait for a maximum of 15 days to get it. And if the insurance company fails to pay the amount in 15 days, the applicable compound interest will be levied on that amount.
Remember that only after validation of all the documents that you get the claim. If you fail to present any of these, your application might be rejected or delayed.