MSME Insurance Scheme - Kerala
The MSME Insurance Scheme is a risk-mitigation support scheme implemented by the Directorate of Industries and Commerce, Government of Kerala. The scheme was launched to provide insurance premium support to Micro, Small, and Medium Enterprises (MSMEs) in the state, enabling them to safeguard their business assets against unforeseen risks such as fire, theft, natural calamities, and accidents. The scheme is ongoing and aims to improve business continuity, financial stability, and resilience of MSMEs by reducing the cost burden of insurance coverage.
Key Features
- Premium Subsidy Support: The scheme reimburses a portion of the insurance premium paid by MSMEs, making insurance coverage affordable for small businesses.
- Asset Protection Focus: Insurance coverage includes risks related to fire, burglary, and natural disasters, helping MSMEs recover faster from losses.
- Encouragement of Risk Management: By promoting insurance adoption, the scheme encourages MSMEs to follow structured risk-management practices.
- District-Level Implementation: Applications and verification are handled through DICs, ensuring local support and monitoring.
Financial Assistance
Note: Exact subsidy percentage and limits are subject to latest government orders and insurer norms.
Eligibility Criteria
Who can apply:
- Micro, Small, or Medium Enterprises registered under Udyam
- Units functioning within Kerala
- Manufacturing and service enterprises
- Units with valid insurance policy
Who cannot apply:
- Unregistered enterprises
- Units with expired or invalid insurance policies
- Enterprises already availing full premium support under similar schemes
Documents Required
- Udyam Registration Certificate
- Insurance policy copy
- Insurance premium payment receipt
- Enterprise address proof
- Bank account details (for subsidy credit)
- Self-declaration of unit operation
- Any additional documents required by DIC
Application process for the scheme
Option 1: Apply with Bullit (Recommended)
Click here to start instantly with guided support. Our team verifies eligibility, compiles your documents, and files the application on your behalf. You can track progress while focusing on your business – we coordinate on your behalf, end-to-end.
Recommended for: MSMEs that want quick, error-free filing without administrative delays.
Option 2: Apply through District Industries Centre (DIC)
- Obtain an insurance policy for your MSME unit from an approved insurer.
- Download or collect the MSME Insurance Scheme application form.
- Submit the filled application with required documents to the District Industries Centre (DIC).
- DIC verifies the claim and processes the premium subsidy.
Option 3: Assisted Application via Taluk Industries Office
Entrepreneurs may approach Taluk Industries Offices / DIC help desks for guidance and assisted submission.
Power combo with the scheme
Related Schemes
Frequently asked questions
What is the objective of the MSME Insurance Scheme in Kerala?
The scheme aims to protect MSMEs from financial losses caused by fire, natural disasters, and other risks by subsidising insurance premiums and encouraging formal risk coverage.
Is the subsidy given upfront or as reimbursement?
The subsidy is generally provided as a reimbursement after the MSME pays the insurance premium and submits proof to the DIC.
Which types of insurance policies are eligible?
Fire and allied peril policies and other approved asset protection policies taken from recognised insurers are typically eligible.
Can service-sector MSMEs apply?
Yes. Both manufacturing and service-sector MSMEs can apply, provided they meet eligibility norms.
Is the scheme active every year?
Yes, but implementation depends on annual budget allocation by the Kerala Government.
Can the same MSME apply every year?
Yes, subject to scheme limits and conditions for repeated claims.