Page 388 - Misc Ebook IC 78

The Insurance Times

Q3.c) What are the special feature of Blood Stock
insurance?

Ans: An underwriter of horse insurance should have good
knowledge of veterinary science and animal
management. Although the policy provides that the
Insurers pay the market value or sum insured whichever
is less, it is difficult to judge the market value at the time
of loss, the policies are issued mostly as valued policies.

The underwriter should therefore have the ability to
assess the value of the horses proposed for insurance.
Since the details of the animal, like history of previous
foaling, nature of extra hard work, susceptibility to
diseases etc is totally in the hands of the proposer, there
is a chance of moral hazard.

So the insurer always insist upon a report of a qualified
veterinary surgeon along with the proposal form. In
case of the sum insured is greater than 10 lacs or more,
veterinary certificate is asked from two doctors. To
minimize the difficulty of identification, each horse must
be adequately described, giving colours, natural

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