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A Kerala regulatory authority recently imposed a ₹1.3 lakh penalty on an insurance firm for unjustly rejecting claims submitted by dairy farmers under the state‑run Ksheera Santhwanam cattle insurance scheme. The scheme, implemented in collaboration with state dairy development bodies, covers livestock health, accidents, and even loss of animal income due to illness or heat stress, with subsidised premiums. The complainants alleged that despite meeting policy terms, several dairy farmers had their claims denied without clear rationale, delaying critical compensation. The authority declared these actions as violations of claim processing norms and consumer protection laws, noting that fairness and accountability are essential for trust in the insurance overlay to the cooperative dairy system. As part of corrective action, the insurer has been directed to expedite valid pending claims and ensure adherence to approved claim timelines going forward.
Industry Insight:
Clear enforcement signals strengthen farmer confidence in insurance mechanisms linked to dairy cooperatives—prompt payouts and transparent processes are vital to sustaining scheme participation and protecting rural incomes.
Source : Dairynews7x7 Aug 5th 2025 The Hindu
