NEW DELHI, 4 June 2023: mooMark, a leading private dairy in India, has made a significant breakthrough in the agricultural insurance sector by becoming the first company to offer a Heat Index Insurance Plan to dairy farmers.
This innovative insurance policy aims to protect farmers from income loss resulting from a drop in milk yield during scorching summer months.
In collaboration with IBISA Network, HDFC ERGO, and Gramcover, mooMark's fintech arm, mooPay, has introduced this unique insurance plan. The scheme provides financial compensation to dairy farmers affiliated with mooMark to offset the loss of income caused by a decline in milk productivity during heat waves. By guaranteeing insurance benefits, the program offers relief to farmers if temperatures exceed specified limits for a predetermined number of days over a 60-day period starting from May 1st. The specific parameters vary according to the region.
The claim settlement process for this insurance plan is designed to be simple and hassle-free. The insurer utilizes temperature trend data for the insured period from an agreed-upon public database and compensates claimants based on the prescribed benefits slab. Each insured cattle is eligible for a maximum cover of INR 2000. Currently, the insurance cover extends to one cattle per household.
Initially, mooMark is offering this insurance policy as part of its loyalty program, covering approximately 7000 farmers across five districts in four states, with a total sum assured of over INR 1.3 crore. Farmers are being informed about this plan through village-level collection centers and the smartFarms app developed by Stellapps. This unique financial product has the potential to benefit more than 80 million dairy farming families who rely on income from approximately 300 million cattle.
Experts in the agricultural sector have praised this move as a commendable step towards mitigating the impact of climate change on farmers. Jinesh Shah, Managing Partner of Omnivore, emphasized that the insurance plan would provide financial support, promote resilience, and foster long-term agricultural sustainability.
Rahul Mallick, the CEO of mooPay, expressed his enthusiasm about the partnership with Gramcover to provide India's first Heat Index-linked insurance product. He stated that this insurance cover would protect dairy farmers from financial losses resulting from extreme heat-related stress on milch cattle. Furthermore, the benefits of this unique cover will be directly deposited into farmers' bank accounts, which is expected to drive confidence in other insurance products.
mooMark's pioneering step in offering the Heat Index Insurance Plan demonstrates the company's commitment to supporting dairy farmers in India and addressing the challenges posed by climate change. By safeguarding farmers' incomes during heat waves, this insurance product brings much-needed security to the agricultural sector and encourages long-term sustainability.
