UP govt approves Rs 5 lakh Accident Insurance Scheme for micro-entrepreneurs

Credit and Finance for MSMEs: The Uttar Pradesh government has approved an insurance scheme to support micro-entrepreneurs in case of an accident. The Chief Minister’s Micro Entrepreneur Accident Insurance Scheme will allow for claims up to Rs 5 lakh in case of death or disability of a micro-entrepreneur due to an accident, said UP Finance Minister Suresh Khanna, according to an ANI report on Wednesday. In the case of partial disability, the claim will be issued according to the percentage of disability stated in the disability certificate issued by the Chief Medical Officer.

“Under the Mukhyamantri Micro Udyami Accident Insurance Scheme, micro-category entrepreneurs aged between 18 and 60 years can apply to avail of its benefits. Micro entrepreneurs, who are not eligible for the trader’s accident insurance scheme run by the GST Department, can immensely benefit from the scheme,” said Khanna.

The Merchant Accident Insurance Scheme launched back in 2000 provides for accidental death or injury cover of up to Rs 10 lakhs to registered traders.

Udyam registration is not mandatory to avail of the benefits of this scheme. According to the UP government investment promotion platform, UP has more than 90 lakh MSMEs. However, only 15.48 lakh MSMEs are registered on the Udyam platform.

According to a release, as reported by ANI, a copy of all the forms will be submitted to the Deputy commissioner (industries) of the concerned district in case of an accident after the entrepreneur’s family applies for the claim online.

“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,” the release added.