UP govt to launch accident insurance scheme for MSME sector

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In a major decision to boost the Micro, Small and Medium Enterprises (MSME) sector in the state the Uttar Pradesh cabinet on Wednesday approved implementation of ‘CM Micro Entrepreneur Accident Insurance Scheme’.

Giving details of the proposal approved by the cabinet chaired by Chief Minister Yogi Adityanath, Finance Minister Suresh Khanna said the scheme will facilitate provision of financial assistance to micro entrepreneurs in unavoidable circumstances.

“For example, in case of death or disability of a micro entrepreneur, claims of up to Rs 5 lakh can be made under the scheme. In case of partial disability, the relief amount will be given according to the percentage of disability as mentioned in the disability certificate issued by the Chief Medical Officer (CMO), he said.

He said, “Under the Mukhyamantri Micro Udyami Accident Insurance Scheme, micro category entrepreneurs aged between 18 and 60 years can apply to avail its benefits. Micro entrepreneurs, who are not eligible for the Traders Accident Insurance Scheme run by the Goods and Services Tax (GST) Department, can immensely benefit from the scheme.”

It may be noted that only about 15 percent of the total MSME units established in the state are formally registered on the Udyam Registration Portal and 85 percent of the units are working informally.

Since registration on Udyam Portal is not mandatory, the data of these units are not formally available. Besides, due to non-availability of formal data, the economic contribution of this sector is not reflected in reality, while policy formulation also faces difficulty.To address these issues the Yogi government has decided to launch the scheme.

Khanna said in case of an accident, a copy of all the forms will be submitted to the Deputy Commissioner (Industries) of the district concerned after the victim’s family has applied for it through the online system.

“In the event of an accident of a registered micro-entrepreneur, after receiving the recommendation of the claim amount from the Deputy Commissioner Industries, the insurance amount will be made available through DBT within a maximum of one month to the nominated heir of the entrepreneur from the directorate level, as per the prescribed procedure,” he said.

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