Factors Influencing the Willingness for Adoption of Livestock Insurance among Dairy Owners

Abstract

India is an agrarian country and livestock which plays a multifactoral role are raised as part of mixed farming systems especially in rural economy. Usually, the livestock economy is a source of self-insurance for farmers, but in the event of any disease outbreak/ disaster, livestock owners suffer. Therefore to mitigate these situation livestock insurance has emerged as a tools to transfer financial risk of dairy owners to a third party by paying a merge amount of premium. But the scheme has not shown encouraging result in term of its adoption by dairy farmers. Thus the study was conducted to identify the factors influencing the adoption of Livestock Insurance among dairy owners. The study was carried out purposively in the state of Uttar Pradesh. A total of 100 dairy farmers were selected randomly from 10 villages. The study reflects that adoption of livestock insurance among livestock owners is mainly effected by motivation by friends & community members followed by high probability of disease occurrence in particular area, effective risk assessment and previous experience of livestock owners. It was also concluded that the insurance institution should take measure like developing infrastructure, to reduce the premium and appoint proper individual to guide the farmers for the insurance.