Insurance Coverage for Cow Business


An Insurance Coverage Program from Indonesian Government for Cow Business. As we’re living in a modern life, a need of insurance is getting inevitable. There are many kinds of insurance introduced to the public by financial organizations today. They offer many kinds of program with various regulations and benefits. Lately, these products get through into the farming business. As we know that long time ago, people recognize Indonesia as a great farming country. Farming is one of the main ways for most of Indonesian to earn their living

There are two kinds of farmers in Indonesia. Some of them have their own field and cultivate it by themselves. Or some others, which are larger in number, don’t have their own field, but they are paid by the owner by cultivating the owners’ field. Though, the number of farmers in Indonesia has been decreased for the last decades, in suburb area or farther in villages, there are still a lot of farming activities that you can find. Not only farming on the field, most villagers also breed some cattle like cows, goats, or sheep.

The government today is more concern to the farming sector by providing support for the financial organization to launch Insurance Coverage product for the farmers. Here are some products which has support from the government especially on the farming sector.


I. For Rice Farming

It offers a protection for the farmers from the risk of failed-harvest due to flood, drought, or from pest attack.


II. For Cow Breeding

The benefits that a cow breeder can get from this product are:

  1. It provides the cow breeder a security and peacefulness so that they can focus on raising their cows in better ways.
  2. The takeover of risks by paying the coverage premium which quite affordable. By taking an insurance product, the cow breeder can transfer the uncertain risk of big loss in his business.
  3. The product offers the guarantee of protection of the cow from death or loss.
  4. To increase the credibility of the participants to the funding access (banking).





1. The premium; The premium value to be paid by the breeder is 20% from the number of the coverage value IDR 10.000.000, which is IDR 200.000/year for each cow. That amount is added by the subsidy from the government as much as IDR 160.000/year for each cow. For the nursery cow, the premium to be charged is IDR 300.000 for the coverage value of IDR 15.000.000. The coverage


2. The coverage value; The maximum coverage value is IDR 10.000.000 for each cow and for the nursery cow, the coverage value is up to IDR 15.000.000


3. The coverage of risk; Not every risk is covered by the company. Only the loss due to robbery and the death due to disease, accident and birth giving are covered.


4. Some conditions that aren’t covered by the programs are:

  • The death of the cow due to Anthrax, SepticemiaEpizootica, Johne’s Disease, Tubercolosis, Anaplasmosis, leucosis is not included into the coverage.
  • The annihilation of the cow by the government for the dissemination of the plague, the death of the cow caused by carelessness of policy holder or the stuff in raising or taking care of the cow.
  • The risks that caused by looting, striking, conflict among the stuffs, war, rebellion, and disobedience.
  • The contamination of hurricane





Not every breeder and his cow have a chance to join this program. There are some criteria to be fulfilled by the breeder and the cow so that the breeder can be the policy holder and their cows are able to be proposed into the program of the Insurance Coverage.


a. The criteria for the breeder

  • The breeder is the business man in cow breeding sector focus on the nursery and the fattening for both beef cow and dairy cow.
  • The breeder should join an active breeder group which has systematical management
  • The breeder should apply the good farming system and good breeding practices suggested by the officer appointed by the government.



b. The criteria for the cow

  • The cow should be owned by the businessman
  • The number of cow to be proposed in the program is at least 4 cows. These cows are may be owned by either a personal breeder, a cooperation, or a company
  • The cow should have identity in the form of microchip or ear tag
  • The age of cow that can be proposed for the program is between 8 months to 6 years



c. Compensation

The compensation is given as the amount mentioned in the coverage value. If the breeder still have a chance to sell the meat of the cow, the amount is then is reduced by the result of the selling price of the meat (in this case, the cow is commonly forcedly slaughtered).




d. The Claim

Claim is easily proposed with some conditions, i.e.:

  • The premium is routinely paid
  • There is the death or the loss of the cow which is included into the program and it happen during the term of coverage, which is commonly a year since the agreement is made.
  • If a cow is death, the policy holder should call a veterinarian or appointed technical officer
  • If a cow is lost, the policy holder should report it right away to the police officer.



  • The breeder complete the claim documents such as the copy of the policy he holds, the letter from the police if the cow is lost, documentation, or pictures (if the cow is dead), the post mortem report from the veterinarian or appointed technical officer
  • The given amount of coverage is accordance to the risk that causes the proses of claim. If the cow is dead for an illness and the breeder still have a chance to sell its meat, the number of the claim will be reduced by the result of the selling that is perceived by the breeder