mooPay, the fintech arm of Stellapps, has collaborated with IBISA Network, HDFC ERGO, and Gramcover to introduce an innovative insurance plan for farmers based on the Heat Index. This insurance plan aims to compensate mooMark dairy farmers for income loss resulting from decreased milk productivity during summer heat waves.
It provides coverage to farmers if temperatures exceed specified limits for a predetermined number of days during a 60-day period starting from May 1st, taking into account region-specific parameters.
The process for filing a claim is simple and straightforward. The insurer utilizes temperature data from a pre-agreed public database for the insured period and compensates the claimant according to the prescribed benefits structure. Each insured cattle is eligible for a maximum coverage of Rs 2000. Currently, the insurance cover is limited to one cattle per household.
Initially, mooMark is offering this insurance as part of its loyalty program, covering approximately 7000 farmers across 5 districts in 4 states, with a total sum assured exceeding Rs 1.3 crore.
Farmers are informed about this plan through village-level collection centers and Stellapps' smartFarms app. This groundbreaking financial product has the potential to benefit more than 80 million dairy farming families who rely on the income generated from approximately 300 million cattle.
Jinesh Shah, Managing Partner of Omnivore, commended this initiative as a significant step towards mitigating the impact of climate change on farmers. He stated that this plan will provide them with financial support, promote resilience, and contribute to long-term agricultural sustainability.
Rahul Mallick, CEO of mooPay, expressed the company's commitment to reimagine financial products for rural consumers. Through the partnership with Gramcover, they have introduced India's first Heat Index-linked insurance product, designed to protect dairy farmers from financial losses caused by extreme heat stress on milch cattle.
The unique coverage will be directly credited to farmers' bank accounts, enhancing confidence in other insurance products as well.
