The
Presidents/ Chief Executive of all banks/MFBs
(As per list attached)
Dear
Sir/Madam,
Livestock Insurance Scheme
for Borrowers
In
order to improve access to finance to the Livestock &
dairy sector and to mitigate risk of loss of livestock due
to disease, natural calamities & accidents, State Bank
of Pakistan, in collaboration with SECP, banks, insurance
companies and provincial livestock & dairy departments
has developed a framework for Livestock Insurance for borrowers,
which is attached.
2.
The Livestock Insurance Scheme will provide an essential risk
mitigating tool to encourage banks to enhance flow of credit
to this highly potential and underserved sector. The scheme
would also safeguard the interest of farmers in case of loss
of animals due to death.
3.
Banks are advised to implement the Scheme based on the parameters
mentioned therein and enter into agreements with reputable
insurance companies for underwriting Livestock Insurance for
their borrowers. Further, banks may also negotiate with insurance
companies for best terms vis-à-vis premium rate, insurance
coverage for disability and theft of animal, etc as per mutual
arrangement.
Please
acknowledge receipt.
Encl:
LISB
|