- No payments will be made for livestock killed in a protected area or conservancy exclusive wildlife zone.
- The cause of death must be verified by a community game guard (e.g. by checking spoor).
- No payments will be made if the livestock was killed at night without being in a secure kraal or other enclosure.
- Conservancy staff and traditional leaders will inspect stock enclosures of members and advise where strengthening is required. No claim will be valid if recommended improvements are not carried out.
- Claims will not be accepted if members were warned that predators were in the area and they took no action to bring the livestock to safety
During the pilot phase, payments were made from donor funding. For the second phase it was agreed that conservancies would cover 50% of the costs themselves, but payments per year would be capped at N$10 000 (≈ 1430 US $).
The aim is that eventually conservancies would fully fund the scheme themselves. During the pilot phase in Caprivi, 20 claims were paid out in 2003 totalling N$22 600 (≈ 3240 US $). In 2007 Kwandu Conservancy in Caprivi will pilot the use of the scheme for addressing crop damage.
There is some indication that the scheme could become a drain on conservancy finances if total annual payments are not capped, or if conservancies are not able to increase their incomes (Roman Pers. Comm., Tjiho Pers. Comm.). Some conservancies are considering establishing livestock herds that can be specifically used to replace animals lost to predators instead of making payments.