The Hindu Business Line : Pet insurance yet to catch up in India

Coimbatore, May 12 In a country where a good number of people are either uninsured or under-insured, insuring a pet could be a far-fetched idea. Many even wonder if there is a policy for pets. All the same, it is not as if pets are out of the insurance gambit.

“Insurance companies do not promote pet insurance because identification of the pet/ pedigree has always been a problem. However, if a pet owner seeks a cover and produces the necessary documents/certificate, insurance companies admit the proposal,” says the Managing Director of Link-K Insurance Broker Company (P) Ltd, Mr P. Mohan Kumar.

The broker firm had last year sought a cover for a horse. “It was an Irish horse and about six years old. My client insured it for Rs 70 lakh. A couple of months later, the horse developed ‘colic’ disease and collapsed. United India settled the claim,” Mr Mohan Kumar said, while seeking anonymity about the horse owner. He admitted to race horses being insured for whopping sums, but these were insured only from a commercial view point.

What about pedigree dogs, particularly the ones that make an appearance at the Dog Show? “Not all dogs that turn up at such shows are covered. Most homes have a watch dog, but only pedigree dogs are entitled to a cover,” he said. Kennel Club sources confirmed this.

The Commissioner of Police Mr K.C. Mahali said that the department had documents to confirm the pedigree of the four sniffer dogs, but none were insured.

The major reason people do not opt for a pet cover could be because it provides protection against death due to accident or disease, but does not cover the vet’s bills.

Reports reveal that the global pet insurance market is witnessing a 10-15 per cent growth. Britain’s pet insurance market is estimated at 1 million insured pets.

Buying procedure

According to Mr Mohankumar, the major reason for this huge gap is the ‘pet-buying procedure’. “We do have a pet registration process, but it is not compulsory as is happening in certain other parts of the globe. So insurance companies do not give any thrust to pet insurance policies,” he said.

“Cattle and poultry insurance are, however, fast catching up, but these do not fall within the ambit of ‘pet insurance’. Insurance companies primarily provide risk compensation for these animals,” he said.

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