Dairy technology provider Stellapps’ fintech arm mooPay, in partnership with IBISA Network, HDFC ERGO and Gramcover, has launched a unique heat Index-based insurance plan for farmers.
The cover provides financial compensation to farmers of mooMark, the dairy supply chain arm of Stellapps, to offset income loss due to a fall in milk productivity during heat waves in summer. The cover guarantees insurance benefits for farmers if, over 60 days starting from May 1, temperatures exceed the specified limits for a predetermined number of days, with region-specific parameters, the company said in a statement.
The claim settlement process is simple and hassle-free. The insurer takes the data of temperature trends for the insured period from a pre-agreed public database and compensates the claimant as per the prescribed benefits slab. Each insured cattle is eligible for a cover of a maximum of ₹2,000. Currently, the insurance cover extends to one cattle per household.
Loyalty programme
In the first phase, mooMark is offering this insurance as a part of its loyalty programme. This policy covers around 7,000 farmers, in 5 districts, across 4 States for a total sum assured of over ₹1.3 crore. Farmers are informed of this plan at the village-level collection centre and through Stellapps’ smartFarms app.
This innovative financial product can potentially help more than 80 million dairy farming families who depend on the income from approximately 300 million cattle, the company said.
Jinesh Shah, Managing Partner of Omnivore,said, “This is a commendable step towards mitigating the impact of climate change on farmers. This plan will provide them with financial support, promote resilience, and foster long-term agricultural sustainability.”
Rahul Mallick, CEO of mooPay said, “At Stellapps’ mooPay, we are reimagining financial products for rural consumers. Working towards this vision, we have partnered with Gramcover to provide India’s first Heat Index linked insurance product to protect dairy farmers from the financial loss from extreme heat-related stress on milch cattle. Farmers will get the benefits of this unique cover directly in their bank account, which will also drive confidence in other insurance products.”