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Kerala Empowers MSMEs with Innovative Insurance Scheme

In a strategic move to fortify its Micro, Small, and Medium Enterprises (MSME) sector, the Kerala government has unveiled a comprehensive insurance initiative. The pioneering scheme, facilitated through a Memorandum of Understanding (MoU) with four public sector insurance companies, aims to shield MSMEs from diverse risks, fostering a resilient business environment.

Reimbursement Reinforcement

Under the scheme, MSMEs stand to benefit from a substantial advantage—50% reimbursement of their annual premium. This financial safeguard is poised to enhance confidence within the sector and encourage its growth amid a competitive business landscape.

Digital Boost with Web Portal Launch

Industries Minister P. Rajeeve marked the occasion by launching a dedicated web portal for the scheme ( This online platform is designed to streamline the insurance process, making it more accessible for MSMEs.

Catalyzing Confidence and Coverage

With over three lakh MSMEs in Kerala, the government’s ambitious initiative seeks to address a critical gap, as only around 15,000 enterprises currently possess insurance coverage. The insurance scheme encompasses risks ranging from natural disasters and fire accidents to theft, accidents, and market fluctuations, providing a holistic protective umbrella.

Targeted Eligibility Criteria

MSMEs engaged in manufacturing, service, and trade sectors, holding UDYAM registration in Kerala and enrolled in the “Bharat Sookshma/Laghu Udyam scheme” with any of the four designated public sector insurance firms from April 1, 2023, onwards, are eligible for the scheme. The reimbursement extends to 50% of the annual premium, capped at ₹2,500.

Government Commitment to MSME Growth

The government’s proactive approach in fortifying MSMEs reflects its commitment to fostering a conducive business environment. By addressing the financial vulnerabilities that MSMEs face, the scheme is expected to catalyze their recovery from unforeseen risks, further fueling the state’s industrial and investment ecosystem.


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