Myanmar will launch an insurance policy covering livestock insurance for the first time in 30 years.
“We estimate livestock insurance will be launched by year-end,” Daw Sandar Oo, managing director of Myanma Insurance, told The Myanmar Times.
State-owned Myanma Insurance, the Department of Livestock Breeding and Veterinary under the Ministry of Agriculture, Livestock and Irrigation (MOALI), Singapore-based InfoCorp Technologies and Myanmar’s RGK+Z&A Group are cooperating to launch the livestock insurance pilot project.
The insurance application process will involve registration of the livestock using InfoCorp Technologies’ tamper-proof livestock identification tagging technology. This involves inserting a digital chip into each animal, said U Zeya Mon, CEO of RGK+Z&A Group, whose activities are focused on energy, healthcare, industry, and the environment.
The registration fee per head of cattle is estimated to be around $2. There is also a premium rate of about 1% of the value of the livestock.
Livestock registration using this technology is the important step in the provision of livestock insurance.
Myanma Insurance had provided livestock insurance in 1983. However, it was forced to stop selling the policy as it did not have a procedure nor the technology to identify animals that were insured and those that were not.
At present, Myanma Insurance is drafting the livestock insurance policy, including how to provide compensation in the event of death or disease. The policy premiums have yet to be announced.
According to official data, there are currently 11.5m heads of livestock in Myanmar.