Uttar Pradesh Mukhyamantri Vyapari Durghatna Bima Yojana

Mukhyamantri Vyapari Durghatna Bima Yojana is a welfare insurance scheme operated by the State Tax Department, Government of Uttar Pradesh. Under the scheme, every eligible GST-registered trader in the state receives accident insurance coverage of up to Rs. 10 lakh without paying any premium. Coverage is automatic, meaning traders do not need to submit a separate application to become beneficiaries.

Introduction of Uttar Pradesh Mukhyamantri Vyapari Durghatna Bima Yojana: A Brief Insight

Running a business always involves risk, but an unexpected accident can create a far bigger crisis for a trader’s family. If the earning member of the family dies in an accident or suffers a permanent disability, the financial burden can become overwhelming overnight. To provide protection in such situations, the Government of Uttar Pradesh operates the Mukhyamantri Vyapari Durghatna Bima Yojana, a dedicated accident insurance scheme for traders in the state.

The scheme is implemented by the State Tax Department (Department of Commercial Taxes), Government of Uttar Pradesh. Its primary objective is to provide financial security to GST-registered traders and their families against accidental risks, while also encouraging traders to remain compliant with GST registration requirements.

One of the biggest advantages of this scheme is that traders do not need to submit a separate application for coverage. Every trader with an active GST registration in Uttar Pradesh is automatically brought under the scheme’s protection. The State Government bears the entire premium cost, ensuring that eligible traders receive insurance coverage without paying any additional amount.

Under the scheme, eligible beneficiaries can receive insurance assistance of up to Rs. 10 lakh in cases of accidental death, death due to murder, or permanent disability caused by an accident. For cases involving partial permanent disability, compensation is provided according to the extent of disability. The insurance cover was increased from Rs. 5 lakh to Rs. 10 lakh with effect from 27 October 2017, significantly strengthening the financial support available to affected families.

In the unfortunate event of an accident, the nominee or legal heir can submit a claim through the designated online claim portal or by following the process prescribed by the State Tax Department. After verification of the trader’s GST status and claim documents, the approved amount is transferred directly to the beneficiary’s bank account through DBT. For assistance, beneficiaries can call the helpline number 1800-180-5223 or visit comtax.up.nic.in.

Micro-entrepreneurs who are not covered under GST can explore the Mukhyamantri Sookshm Udyamee Durghatna Beema Yojana, which provides accident insurance support through the MSME Department. Similarly, farmers can check the Mukhyamantri Krishak Durghatna Kalyan Yojana, a dedicated accident assistance scheme for the agricultural community. Individuals seeking additional insurance protection may also consider the Central Government’s PM Jeevan Jyoti Bima Yojana and PM Suraksha Bima Yojana, which offer affordable life and accident insurance coverage.

Traders, business owners, and families looking for more welfare, insurance, and financial assistance schemes available under the Uttar Pradesh Government can explore all available programmes on our Uttar Pradesh Government Welfare Schemes page.

Benefits Provided to Eligible Beneficiaries

Mukhyamantri Vyapari Durghatna Bima Yojana provides financial protection to GST-registered traders and their families in the event of accidental death or permanent disability. The scheme is fully funded by the Government of Uttar Pradesh, ensuring that eligible traders receive insurance coverage without paying any premium.

Insurance Coverage Available

• Rs. 10 lakh in case of accidental death of a registered trader
• Rs. 10 lakh in case of death resulting from murder
• Rs. 10 lakh in case of permanent total disability caused by an accident
• Compensation for permanent partial disability as per the approved disability percentage and applicable norms

Important: The insurance cover under the scheme was enhanced from Rs. 5 lakh to Rs. 10 lakh with effect from 27 October 2017. Beneficiaries should refer to the revised amount, as several older references still mention the earlier coverage limit.

No Premium, No Registration Fee

• Eligible traders do not have to pay any insurance premium
• The entire cost of coverage is borne by the Government of Uttar Pradesh
• Insurance protection is linked directly with an active GST registration
• No separate enrolment is required to receive coverage under the scheme

Direct Financial Support to Families

• Approved claim amounts are transferred directly to the nominee or legal heir’s bank account
• Financial assistance helps families cope with sudden income loss after an accident
• The benefit provides immediate economic support during difficult circumstances

Impact of the Scheme

Cases Not Covered Under the Scheme

• Death due to illness, old age, or other natural causes
• Disability not arising from a qualifying accident
• Traders with inactive, suspended, or cancelled GST registrations
• Business owners who are not registered under GST

Note: Originally introduced as the Merchant Accident Insurance Scheme, this welfare initiative continues to provide financial security to Uttar Pradesh’s trading community. The scheme remains operational, and budgetary provisions have continued to be made by the State Government in recent years.

Eligibility Conditions Required to be Fulfilled

To receive insurance coverage under the Mukhyamantri Vyapari Durghatna Bima Yojana, the trader must satisfy the eligibility conditions prescribed by the State Tax Department, Government of Uttar Pradesh. Since the scheme is linked directly with GST registration, eligible traders are covered automatically without submitting a separate application or paying any premium.

Basic Eligibility Requirements

• Must be a registered GST taxpayer in Uttar Pradesh
• GST registration should be active and valid at the time of the accident
• No separate registration, enrolment, or insurance premium is required
• Coverage is automatically extended to eligible GST-registered traders

Eligible Business Categories

• Proprietorship firms
• Partnership firms
• Hindu Undivided Family (HUF) businesses
• Limited Liability Partnerships (LLPs)
• Private Limited and Public Limited Companies

Events Covered Under the Scheme

• Accidental death of the registered trader
• Death resulting from murder
• Permanent total disability caused by an accident
• Permanent partial disability arising from an accident

Who Cannot Avail the Benefit?

• Traders with cancelled, inactive, or suspended GST registrations
• Cases involving death due to illness, old age, or other natural causes
• Individuals carrying on business activities without GST registration
• Applicants who fail to establish that the death or disability resulted from a covered accidental event

Special Note for Small Entrepreneurs

Small business owners and micro-entrepreneurs who are not registered under GST are generally not covered under this scheme. Such applicants may explore the Mukhyamantri Sookshm Udyamee Durghatna Beema Yojana, a separate insurance scheme implemented by the Industries Department that provides accident insurance coverage to eligible micro-enterprises.

Important: Mukhyamantri Vyapari Durghatna Bima Yojana and Mukhyamantri Sookshm Udyamee Durghatna Beema Yojana are two different schemes. The trader insurance scheme is administered by the State Tax Department and provides insurance coverage of up to Rs. 10 lakh, whereas the micro-entrepreneur scheme is operated by a different department with separate eligibility conditions and benefit provisions.

Documents Required to be Attached

To claim insurance benefits under the Mukhyamantri Vyapari Durghatna Bima Yojana, the nominee, legal heir, or eligible family member of the registered trader must submit the prescribed documents along with the claim application. The required documents may vary depending on whether the claim relates to accidental death or permanent disability.

Essential Documents for Every Claim

• GST Registration Certificate of the registered trader
• Aadhaar Card and PAN Card of the insured trader
• Aadhaar Card and identity proof of the claimant/nominee
• Document establishing the claimant’s relationship with the trader
• Bank passbook copy or cancelled cheque of the claimant for DBT payment

Documents Required for Accidental Death Claims

• Death Certificate issued by the competent authority
• Post-Mortem Report or Panchnama confirming the accidental death
• FIR, Accident Report, or General Diary (GD) extract, wherever applicable
• Legal Heir Certificate, Succession Certificate, or other proof of entitlement to receive the claim amount

Documents Required for Permanent Disability Claims

• Permanent Disability Certificate issued by a competent medical board or authorised medical authority
• Medical reports, treatment records, and supporting documents related to the accident and disability

Additional Documents in Delayed Cases

• Affidavit or written explanation stating the reason for delay in submitting the claim application
• Any supporting evidence justifying the delayed claim, if requested by the department

How Beneficiaries Can Apply to Avail the Benefit of the Scheme

One of the biggest advantages of this scheme is that traders do not need to submit a separate application to get insurance coverage. If your business is properly registered under GST and your registration remains active, the insurance protection is provided automatically by the Government of Uttar Pradesh.

Think of it this way, once your GST registration is active, the government automatically adds you under the scheme’s insurance umbrella. There is no registration form, no policy purchase, and no premium payment involved.

Step 1: Obtain GST Registration

If you are running a business that requires GST registration, complete the registration process with the GST Department. This is the primary condition for receiving coverage under the scheme.

Step 2: Keep Your GST Registration Active

After registration, make sure your GST number remains active and valid. As long as your GST registration continues without cancellation or suspension, the insurance protection remains available.

Step 3: Enjoy Automatic Insurance Coverage

There is nothing more you need to do. No separate insurance card, policy document, enrolment form, or premium payment is required. Eligible GST-registered traders are automatically covered under the scheme.

Important: Many traders mistakenly look for an application form to join the scheme. In reality, there is no separate enrolment process. Your active GST registration itself acts as the basis for coverage.

How Family Members Can File an Online Claim Under Mukhyamantri Vyapari Durghatna Bima Yojana

If a GST-registered trader unfortunately dies in an accident, is murdered, or suffers permanent disability due to an accident, the nominee or legal heir can submit a claim online through the official State Tax Department portal. The process is straightforward if all required documents are kept ready beforehand.

Step 1: Collect All Required Documents

Before starting the application, keep all necessary documents ready. These generally include the trader’s GST Registration Certificate, Aadhaar Card, PAN Card, accident-related documents, nominee details, bank account information, and any other supporting records required for the claim.

Step 2: Visit the Official Claim Portal

Open the official Mukhyamantri Vyapari Durghatna Bima Yojana claim portal provided by the Uttar Pradesh State Tax Department.

Portal: https://up-vat.com/VyasCentral/durghatnabima/Vyapari_DurghatnaBeema_latest.aspx

Step 3: Enter GST Information

On the portal, enter the GST Number of the trader. The system will verify whether the trader was covered under the scheme at the time of the incident.

Step 4: Fill in Claim Details

Carefully provide the required information, including details of the accident, date of the incident, claimant information, nominee details, contact information, and bank account details where the claim amount should be credited.

Step 5: Upload Supporting Documents

Upload scanned copies of all required documents. Make sure the documents are clear and readable to avoid delays during verification.

• Death Certificate (for death claims)
• Disability Certificate (for disability claims)
• FIR, Post-Mortem Report, Panchnama, or Accident Report, wherever applicable
• GST Registration Certificate
• Aadhaar Card and PAN Card
• Legal Heir/Nominee documents
• Bank Passbook or Cancelled Cheque

Step 6: Review and Submit the Application

Check all information carefully before final submission. Once satisfied, submit the claim application and note down the acknowledgement number or reference number generated by the system.

Step 7: Department Verification

After submission, the State Tax Department verifies the GST registration, accident records, claimant details, and uploaded documents. If any clarification or additional document is required, the department may contact the claimant.

Step 8: Receive the Claim Amount

Once the claim is approved, the eligible insurance amount is transferred directly to the nominee’s or legal heir’s bank account through DBT.

How to Check Claim Status

Step 1: Visit the official claim portal.

Step 2: Select the option related to claim status or application tracking.

Step 3: Enter the GST Number, application reference number, or other required details.

Step 4: View the latest status of your application and check whether it is under verification, approved, or requires additional action.

Important: Do not wait for months after the incident to file the claim. Submit the application as early as possible and ensure that all uploaded documents match the information available in official records. This helps the department process the claim faster and reduces the possibility of objections during verification.

Important Links Available of the Scheme

• Uttar Pradesh Mukhyamantri Vyapari Durghatna Bima Yojana Online Claim Portal
• State Tax Department (Commercial Tax), Government of Uttar Pradesh Official Portal
• State Tax Department Notice Board (Latest Circulars and Budget Updates)
• State Tax Department Scheme Details and History

Contact Details in Case of Help Needed

• Nodal Department: State Tax Department (Department of Commercial Taxes), Government of Uttar Pradesh
• Helpline: 1800-180-5223
• Local Level: Contact your nearest State Tax office or Deputy/Joint Commissioner, State Tax, for claim-related queries

Frequently Asked Questions (FAQs)

Q. What is Mukhyamantri Vyapari Durghatna Bima Yojana?

Ans. Mukhyamantri Vyapari Durghatna Bima Yojana is an accident insurance scheme run by the State Tax Department, Government of Uttar Pradesh. The scheme provides insurance coverage of up to Rs. 10 lakh to eligible GST-registered traders in cases of accidental death, murder, or permanent disability.

Q. Who can get the benefit of this scheme?

Ans. All traders with an active GST registration in Uttar Pradesh are automatically covered under the scheme. No separate registration or enrolment is required.

Q. Do traders need to pay any premium?

Ans. No. The entire insurance premium is borne by the Government of Uttar Pradesh. Eligible traders receive coverage completely free of cost.

Q. What is the insurance amount available under the scheme?

Ans. The scheme provides insurance coverage of up to Rs. 10 lakh for accidental death, death due to murder, and permanent total disability. In cases of permanent partial disability, compensation is paid based on the approved percentage of disability.

Q. Is the insurance coverage activated automatically?

Ans. Yes. Once a trader has a valid and active GST registration in Uttar Pradesh, coverage under the scheme becomes automatic. No separate insurance policy or application form is required.

Q. What happens if the GST registration is cancelled or becomes inactive?

Ans. Traders whose GST registration is cancelled, suspended, or inactive at the time of the incident are generally ineligible for benefits under the scheme.

Q. Are deaths due to illness covered under this scheme?

Ans. No. The scheme covers only accidental death, death due to murder, and eligible accident-related permanent disabilities. Deaths resulting from natural causes or illness are not covered.

Q. How can family members file a claim?

Ans. The nominee or legal heir can submit a claim online through the official State Tax Department portal by providing GST details, accident-related documents, nominee information, and bank account details.

Q. Can claims be submitted online?

Ans. Yes. Claims can be filed online through the official Mukhyamantri Vyapari Durghatna Bima Yojana portal maintained by the State Tax Department of Uttar Pradesh.

Q. How is the claim amount paid?

Ans. After successful verification and approval, the sanctioned amount is transferred directly to the nominee’s or legal heir’s bank account through Direct Benefit Transfer (DBT).

Q. Is there a deadline for submitting a claim?

Ans. Claims should be filed as soon as possible after the incident. In cases of delayed submission, the claimant may be required to provide a valid explanation or affidavit for the delay.

Q. Is this scheme different from Mukhyamantri Sookshm Udyamee Durghatna Beema Yojana?

Ans. Yes. Both are separate schemes. Mukhyamantri Vyapari Durghatna Bima Yojana is meant for GST-registered traders and provides insurance coverage of up to Rs. 10 lakh, whereas Mukhyamantri Sookshm Udyamee Durghatna Beema Yojana is designed for eligible micro-entrepreneurs under a different department.

Q. Where can beneficiaries get assistance regarding the scheme?

Ans. Beneficiaries can contact the State Tax Department helpline at 1800-180-5223 or visit their nearest State Tax Department office for claim-related assistance and guidance.

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.