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DIMAPUR — Chief Minister Neiphiu Rio unveiled a series of schemes designed to provide comprehensive coverage to various sectors in Nagaland. The announcement was made during the Nagaland Credit Empowerment Summit held at Noune Resort, Chümoukedima, on September 20.
One of the key announcements was the launch of the “Police Personnel Accidental Insurance” scheme. With 24,930 police personnel in the state, this scheme specifically targets those drawing salaries through the State Bank of India (SBI), totalling 24,087 personnel, Rio had said during the launch.
This initiative offers accidental death coverage at no premium cost to the beneficiaries. However, a post-mortem examination of the deceased is mandatory for claim processing. The Finance Department has appointed a dedicated nodal person to streamline the insurance process. (Refer table)
Revamped CMMFI
The chief minister also announced a revamped Chief Minister's Micro Finance Initiative (CMMFI), stating that since its inception on August 23, 2022, the initiative has empowered 929 entrepreneurs with INR 18.6 crore disbursed as subsidies.
The District Level Monitoring and Implementation Committee has approved another 980 additional applications and an amount of INR 18.6 crore has been released as subsidy with a total loan portfolio of INR 52 crore.
The CM has said that the revisions would streamline fund flow, improve accessibility, and ensure equitable distribution of resources. The revisions include a unified application evaluation process, an online portal for applications and tracking, and a mandatory 6-month EMI moratorium to provide breathing room for new businesses.
Furthermore, loan verification and approval processes have been simplified, with a 14-day timeframe for project appraisals. Notably, special provisions cater to innovative projects, persons with disabilities, widows, single mothers, and unemployed youth.
Annual credit plan for FY 2024-25
In a step towards strengthening financial inclusion, the chief minister announced an increase in credit flow to priority sectors from INR 1,058 crore to INR 2,003 crore for the current financial year. This move is expected to invigorate sectors like agriculture and small enterprises.
He said that under this plan, banks are mandated to provide priority sector loans proportionate to the deposits received from within the state, which currently stands at around INR 18,000 crore.
Also, the credit flow target for entrepreneurship (MSME) was increased from INR 340 crore to INR 1,137 crore for the current financial year.
Rio also introduced the “State Sponsored Collateral-Free Coverage” initiative, offering loans up to INR 50 lakh per beneficiary. This scheme, facilitated through the Credit Guarantee Trust for Micro Small Enterprises (CGTMSE), aims to mitigate financial risks for banks, thereby encouraging increased lending to both businesses and individuals, while relieving the beneficiary of the need for any third party collateral.
CGTMSE stands as guarantor for MSME and business loans against payment of a nominal annual guarantee fee. Once the loan is covered, and in case an entrepreneur is unable to repay the loan due to genuine reasons, except for the case of ‘fraud and wilful default’, CGTMSE will be making the payment to the banks up to 85% of the pending loan amount.
Additionally, a new loan tracking website for online applications and monitoring was unveiled. This platform empowers beneficiaries to generate detailed project reports, aligning with MUDRA loan frameworks, for seamless submission to banks.
Digital Piggery Insurance Scheme
Further catering to the agricultural sector, Rio introduced the ‘Digital Piggery Insurance Scheme’ in partnership with TataAIG, the modalities of which will be finalised with the Finance Department, Nagaland State Rural Livelihood Mission (NSRLM), and the Department of Veterinary and Animal Husbandry. This door step service model aims to provide coverage against financial losses incurred due to pandemics, diseases, or other unforeseen events. The insurance premium will be INR 1557 per pig for coverage of INR 22000.
Status of existing schemes
Meanwhile, the he said that the Chief Minister’s Health Insurance Scheme (CMHIS), launched in October 2022, has benefited 7,457 government employees and pensioners. A total of 22,187 treatments have been covered, out of which claims of INR 62 crore have been paid for 17,162 cases.
A total of 51 hospitals within the state and 64 in other parts of the country have been empanelled for the scheme.
Furthermore, the Chief Minister’s Life Insurance Scheme (CMLIS), launched on August 15, 2024, provides life and accidental insurance coverage to over 1.5 lakh families, with more enrollments anticipated. CMLIS provides a life insurance cover of INR 2 lakh for the breadwinner of a family. Additionally, it offers INR 2 lakh in accidental insurance coverage for the breadwinner and up to three dependents.