KERALA GOVERNMENT LAUNCHES A COMPREHENSIVE INSURANCE SCHEME FOR MSMEs

The Kerala government has made a substantial contribution to the state's micro, small, and medium enterprises (MSMEs), by introducing a comprehensive insurance scheme.  This effort intends to safeguard MSMEs from a variety of risk factors and boost confidence so they can prosper in an environment of fierce competition. To successfully administer this program, the Department of Industries and Commerce has entered a Memorandum of Understanding (MoU) with four public sector insurance companies -National Insurance Company Ltd., United Insurance Company Ltd., Oriental Insurance Company Ltd. and New India Assurance Company Ltd.

Over three lakh MSMEs presently exist in Kerala, out of which 1, 40,000 have registered as a result of the government's Year of Enterprises initiative. However, only around 15,000 of them are covered by insurance against the numerous types of risks they can encounter on their journey. By addressing their needs and providing the necessary support through various programs, the government has been making significant interventions to strengthen MSMEs.

ELIGIBILITY:

MSMEs in the manufacturing, service, and trade sector in Kerala must meet the following criteria:

1. Must have UDYAM registration.
2. Must have enrolled in the Bharat Sookshma/Laghu Udyam scheme from any one of the four public sector insurance firms.
3. Enrollment for insurance must be for the period beyond April 1, 2023.

RISKS COVERED:

1. Natural disasters
2. Fire accidents
3. Theft
4. Accidents
5. Market fluctuations

UNDER THIS SCHEME:

1. Businesses are entitled for a 50% reimbursement of their annual premium, up to a maximum of 2,500.
2. A web portal of this scheme has been launched - http://msmeinsurance.industry.kerala.gov.in/