MSME INSURANCE SCHEME
About the Scheme
The Department of Industries and Commerce, in alignment with the Government’s vision to create a sustainable ecosystem for industries in the State, is introducing an Insurance scheme for the Micro, Small and Medium Enterprises (MSMEs) in the state. This scheme aims at providing financial protection to MSMEs against unforeseen risks, which can have a detrimental impact on their businesses. The scheme intends to provide reimbursement of up to 50 percent of the annual insurance premium paid by MSMEs and shall be implemented through the District Industries Centres (DICs). An amount of Rs. 30 Lakh has been allocated for the scheme for the financial year 2023-24..
MSME Insurance scheme shall be operated through the four leading Public Sector Insurance Companies in the State, i.e.
- National Insurance Company Ltd.
- United India Insurance Company Ltd.
- Oriental Insurance Company Ltd.
- New India Assurance Company Ltd.
As part of this, the State government signed MoUs with these four Public Sector Insurance Companies on 12th October 2023.
Benefits under the scheme
The multitude of risks faced by MSMEs includes natural disasters, fire, theft, accidents, and market fluctuations, leaving them vulnerable to significant financial losses. These losses can have long-lasting consequences on the sustainability of the business. However, with adequate insurance coverage, MSMEs can protect themselves against unforeseen risks and recover quickly from any losses. By providing financial protection, insurance coverage instills confidence in MSMEs, allowing them to take calculated risks and expand their businesses. Thus, the Insurance scheme shall enable the MSMEs to thrive in a competitive business environment.
Eligibility for availing assistance under the Scheme
- All MSMEs in the manufacturing or service or trade sector having valid UDYAM registration in Kerala and have enrolled for insurance under the “Bharat Sookshma/ Laghu Udyam Scheme” from any one of the four public sector insurance firms that are part of this scheme for the period beyond April 1, 2023, are eligible for assistance under this scheme
- The assistance under the scheme shall be provided in the form of reimbursement
- Enterprises are eligible for reimbursement of 50% of their annual insurance premium (up to a maximum of Rs. 2500)
How to apply for the scheme
- If the applicant MSME has not taken Insurance Policy yet, there is a provision in the portal to intimate its willingness to the four Insurance companies. The Insurance Companies will upload their premium amounts to the applicant through the portal. The applicant can choose the most suitable quote through the portal. Hence the MSME can enjoy the best premium amount through this scheme.
- MSMEs shall purchase the insurance policy by paying the full annual premium from any one of the four public sector insurance firms that are part of the scheme
- After purchasing the policy, MSME shall submit the application for reimbursement to the District Industries Centre concerned through the online portal; Along with the application, UDYAM registration certificate of the unit, insurance policy document and receipt of premium paid should also be submitted as supporting documents
- DIC shall calculate and reimburse the eligible assistance amount to the bank account of the MSME unit (50% of the annual premium paid or Rs. 2500, whichever is lower).