Other issues like moral
hazard and adverse selection, which contribute to a high incurred claims ratio, can be addressed by using high tech
tools like the RFID System(Radio Frequency Identification System, which is
already in vogue successfully, in advanced countries. This will be all the more necessary, because the sum assured of an animal which stands at Rs. Rs currently, is expected to increase due to rapid
replacement of existing stock, by genetically advanced varieties and stand nearly at Rs – Rs. 10,000 per animal.
The Working Group has the following recommendations:
•
That the coverage of animals including cattle, goats and sheep be increased by million
in the course of the XI Plan, especially keeping in mind the huge numbers in this category, and the increasing costs of replacement.
•
That subsidy be introduced at 50%, with an additional 5%
of subsidy, being allocated towards the propagation of better healthcare services
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