Insurance schemes for MSMEs: The Kerala government has announced an insurance scheme dedicated to the MSMEs in the state against business risks and instil confidence in their operations, PTI reported. The Department of Industries and Commerce has formalised agreements with four public sector insurance companies to provide tailored products for the MSMEs of Kerala.
Under the insurance scheme, a wide range of risks would be covered including natural disasters, fire accidents, theft, accidents and market fluctuations, curbing the risk of devastating financial losses for businesses. All the enterprises with Udyam registration in Kerala and enrolled in the “Bharat Sookshma/ Laghu Udyog scheme” from any of the four insurance companies before April 1, 2023, are eligible under the scheme.
Also read: Kerala sets up 89,000 MSMEs in FY23
Enterprises would be eligible for 50 per cent of the reimbursement of the annual insurance premium, with a ceiling of Rs 2,500. To avail benefits, the enterprises can purchase the insurance plan by paying the entire premium amount and then claim reimbursement to the concerned District Industries Centre through the online portal. The reimbursement will be transferred to the bank accounts of the eligible enterprises.
As per the report, Kerala has more than 3 lakh MSMEs, of which 1.4 lakh enterprises registered with the state government’s Year of Enterprise initiative. Only 15,000 of the entrepreneurs have insurance coverage against various risks.
Suman Billa, Principal Secretary, Industries, said that the insurance scheme will not only strengthen the industrial and investment ecosystem of the state but also boost the confidence of entrepreneurs, according to the report by PTI.
In January, the Kerala government’s Industries department got recognition from the Centre for its ‘’Year of Enterprise’’ initiative as one of the best practices in ‘Thrust on Micro, Small and Medium Enterprises (MSME) category. Under the initiative, the state has set up over a lakh enterprises in less than eight months.