Before a livestock insurance scheme is introduced, an account should be made of the health condition of the animals to be insured. This includes the availability of veterinary medicines, the number of veterinary doctors and animal science experts a well coordinated extension services, and the infrastructure to support communication treatment of animals especially the availability and functioning of dips and accaricides. Other factors equal importance includes animal breed, identification, pasture and range development. Important above all is back up support of the Government.But somehow all the foregoing factors do not seem to create the ideal situation in Tanzania not because they are not available but probably because the authority is yet to realize the importance of insurance and its role in the development of the livestock industry.