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Kerala govt launches Comprehensive Insurance Scheme to safeguard MSMEs
Industry News- Oct 16,23
As of now, Kerala is home to more than three lakh MSMEs, with around 1,40,000 entities registered under the government's Year of Enterprises initiative.
In a significant boost to Kerala's flourishing Micro, Small, and Medium Enterprises (MSME) sector, the state government has introduced a comprehensive insurance scheme. This initiative, formalised through agreements with four public sector insurance companies, aims to provide financial protection to MSMEs and boost their confidence in the competitive business landscape, according to an official announcement.
The initiative, spearheaded by Minister for Industries, Law, and Coir, P Rajeeve, is a proactive measure to safeguard businesses from diverse risks. As of now, Kerala is home to more than three lakh MSMEs, with around 1,40,000 entities registered under the government's Year of Enterprises initiative. Rajeeve emphasised the importance of this scheme, highlighting its role in shielding MSMEs from various risks that could adversely affect their operations.
Suman Billa, Principal Secretary of Industries and NORKA, praised the scheme, stating that it would not only bolster the state's industrial and investment ecosystem but also instill confidence in entrepreneurs. S Harikishore, Director of the Department of Industries and Commerce, stressed the crucial support this insurance scheme would offer to MSMEs in recovering from unforeseen risks.
The insurance coverage encompasses a wide array of risks, including natural disasters, fire accidents, theft, accidents, and market fluctuations, all of which can lead to substantial financial losses for MSMEs. Eligibility for the scheme is extended to all MSMEs in the manufacturing, service, and trade sectors with UDYAM registration in Kerala, and enrolled in the "Bharat Sookshma/Laghu Udyam scheme" through any of the four designated public sector insurance firms after April 1, 2023.
Under the scheme, enterprises are entitled to a reimbursement of 50% of their annual premium, capped at Rs 2500. MSMEs can acquire the insurance policy by paying the full annual premium and subsequently apply for reimbursement through the online portal, accompanied by the necessary supporting documents. The implementation of the scheme will be facilitated through the District Industries Centres (DICs), which will process applications and directly reimburse eligible assistance to the bank accounts of MSMEs.
Source: Business Standard
Kerala
MSMEs
P Rajeeve
S Harikishore
Bharat Sookshma/Laghu Udyam scheme
UDYAM registration
District Industries Centres
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