The Uttar Pradesh government is set to launch an accident insurance scheme for the Micro, Small, and Medium Enterprises (MSME) sector in the state. The scheme, called the ‘CM Micro Entrepreneur Accident Insurance Scheme,’ aims to provide financial assistance to micro entrepreneurs in case of unexpected events.
Under the scheme, micro entrepreneurs can claim up to Rs 5 lakh in the event of death or disability. The relief amount for partial disability will be based on the percentage of disability as mentioned in the disability certificate issued by the Chief Medical Officer (CMO). This initiative is expected to provide much-needed support to micro entrepreneurs who are not eligible for the Traders Accident Insurance Scheme run by the Goods and Services Tax Department.
Currently, only about 15 percent of the total MSME units in Uttar Pradesh are formally registered on the Udyam Registration Portal, while the remaining 85 percent operate informally. This lack of formal registration hinders policy formulation and prevents the accurate reflection of the sector’s economic contribution. To address these issues, the Yogi Adityanath-led government has decided to launch this scheme.
To benefit from the CM Micro Entrepreneur Accident Insurance Scheme, micro entrepreneurs between the ages of 18 and 60 can apply. In the unfortunate event of an accident, the victim’s family can apply for the insurance through the online system, and all the necessary forms will be submitted to the Deputy Commissioner (Industries) of the relevant district. After the deputy commissioner approves the claim amount, the insurance payment will be made available to the nominated heir of the entrepreneur within a maximum of one month through Direct Benefit Transfer (DBT), following the prescribed procedure.
The implementation of this scheme is expected to provide much-needed support and financial security to micro entrepreneurs, who often face challenges and uncertainties in their business ventures. By offering accident insurance, the Uttar Pradesh government aims to boost confidence among micro entrepreneurs and encourage them to contribute further to the state’s economy.
This move by the state government aligns with their efforts to promote the growth of the MSME sector and create a more favorable business environment in Uttar Pradesh. The scheme’s focus on micro entrepreneurs, who often operate on a smaller scale, showcases the government’s commitment to supporting businesses of all sizes and providing equal opportunities for growth.
As the government prepares to launch this new accident insurance scheme, it is expected to significantly benefit the MSME sector in Uttar Pradesh. By offering financial assistance in times of need, the scheme will not only safeguard the livelihoods of micro entrepreneurs but also contribute to the overall growth and development of the state’s economy.
Overall, the Uttar Pradesh government’s decision to introduce the CM Micro Entrepreneur Accident Insurance Scheme is a positive and progressive step towards ensuring the well-being and prosperity of micro entrepreneurs in the state. As this scheme rolls out, it will provide much-needed support and protection to those in the MSME sector, enabling them to focus on their businesses with greater confidence and peace of mind.
