Finance ministry cracks the whip on insurance companies for ignoring MSMEs

Reluctant insurers have failed to offer the cover especially curated by the ministry following the UK Sinha panel's recommendations

Even as insurance companies have ignored insurance policies designed by the Narendra Modi government especially for micro, medium and small enterprises, the finance ministry has asked insurers to check whether they are providing such covers.

The department of financial services (DFS) in the finance ministry had curated these product prototypes following the recommendations of the UK Sinha panel on MSMEs. However, insurance companies – both life and non-life – seem to have ignored these. According to insurance industry sources, though some generic products are available, there is hardly one in accordance with the prototypes drafted by the finance ministry especially