52 BRITISH INDIA - INSURANCE AND THRIFT 



then became evident that in the early years, to render certain payment 

 of part at any rate of the indemnity, reinsurance was essential. It also 

 appeared that insurance would not become really popular unless deaths 

 from rinderpest were covered. 



The whole subject was again discussed at the Agricultural and Co- 

 operative Conference held at Mandalay in August 1913 : and in a meeting 

 which over 300 chairmen of agricultural credit societes attended it was 

 then resolved that the premium rate should be raised from 3 ^/g per cent, 

 to 5 per cent, per annum, and that rinderpest deaths should be covered ; 

 that a central reinsurance society was essential ; and that to eliminate 

 the risk of fraud membership of cattle insurance societies should be re- 

 stricted to persons who are members of co-operative credit societies. 



The sanction of the Secretary of State for India to the grant, by way 

 of an interest free loan, to the central reinsurance society of assistance to 

 enable it to meet indemnities in the early years, was received early in 1915. 

 The amount to be drawn in any one year is not to exceed Rs. 25,000 (i) and 

 repayments are to be made from the sixth year onwards from the central 

 society's reserve fund. 



Cattle insurance was again discussed at the Agricultural and Co-oper- 

 ative Conference held at Mandalay in August 1915 ; and it was resolved 

 that the central reinsurance society should be formed, that in the 

 five districts to which operations were at present to be confined every credit 

 society should form an annexed cattle insurance society, and that for 

 purposes of supervision a cattle insurance society should be admitted into 

 the union to which the credit society, to which it was annexed, belonged. 



The Upper Burma Central Co-operative Cattle Reinsurance Society, 

 Limited, was registered in August 1915. The membership consists of some 

 fifteen honorary members — persons interested in co-operative and agricul- 

 tural improvement — and of affiliated village cattle insurance societies. It 

 receives half the premia paid to societies by members and insures half the 

 risk undertaken by such societies. Indemnities due are paid by the manager 

 on receipt of a cattle death report giving full details. It is managed by a 

 general meeting, committee and a manager. For the present the registrar 

 is acting as honorary manager. To safeguard the interests of government, 

 a government representative is a member of the general meeting and has 

 five votes. It has a general fund, consisting of the current year's premium 

 income, and a reserve fund consisting of the net proceeds of past years. 

 The latter fund is banked with the National Bank of India and the general 

 fund is kept in the Upper Burma Central Co-operative Bank. Societies 

 submit to the manager of the central society half-yearly statements show- 

 ing the names of members and number, descriptions and value of cattle 

 insured. 



The by-laws of the village mutual cattle insurance societies are based 

 on those used by French mutual societies. There are the usual exceptions 

 of deaths from war, theft etc., and societies do not pay indemnities where 



(i) I rupee = IS Ad, 



