Uttarakhand Trader Accident Insurance Scheme

Scheme Introduction: A Brief Overview

The Uttarakhand Trader Accident Insurance Scheme is a state-run insurance scheme operated by the State Tax Department, Government of Uttarakhand, for GST-registered traders. If an eligible trader dies in an accident, the scheme pays a lump-sum insured amount to the trader's dependents. The State Tax Department selects an IRDA-registered insurance company with a branch in Uttarakhand through a tender, and that company settles the claims. Traders do not pay any premium or fill any separate application to join; the cover comes automatically with a valid GST registration.

The government launched this scheme to protect trading families from sudden financial shock. Small shopkeepers, proprietors and family businesses often run on a single earning member, and an accidental death can leave the family without income overnight. The main objective of the scheme is to give registered traders financial security through insurance cover in case of an accident and to keep their interests protected on a continuous basis. It also reflects the state government's view of traders as partners in development, not just taxpayers.

Under the Trader Accident Insurance Scheme, the dependents of a deceased trader receive an accidental death cover of ₹10 lakh. The cover applies to the owner of a sole proprietorship firm, the partners of a partnership firm and the karta of a Hindu Undivided Family (HUF) business registered under GST. Limited companies, societies, clubs, associations and government departments or undertakings do not fall under the scheme.

The Trader Accident Insurance Scheme works on a simple model. Every eligible trader registered under GST on the start date of the scheme period gets covered automatically, and traders who register during the period get covered from the effective date of their registration. If a registration gets cancelled, the cover ends from the date of cancellation. 

After an accidental death, the dependent or legal heir submits the claim within 90 days through the Joint Commissioner (Karya), State Tax, of the concerned area. The insurance company must pay the claim within 3 months, and the payment reaches the heir by cheque through the Joint Commissioner's office.

Just as the Uttarakhand government runs the Uttarakhand Trader Accident Insurance Scheme, the Central Government also operates two schemes- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) offering insurance benefits to citizens; PMJJBY provides ₹2 lakh life cover for death due to any reason (age 18–50, premium ₹436/year), while PMSBY offers up to ₹2 lakh cover for accidental death or disability (age 18–70, premium ₹20/year). You can view the complete details of these schemes here.

Latest Update: The Uttarakhand Government has granted administrative approval to continue the scheme from 19 November 2026 to 18 November 2027, as conveyed by Secretary Shri Ranveer Singh Chauhan to the Commissioner, State Tax. Earlier, on 9 October 2026, CM Shri Pushkar Singh Dhami announced at the Provincial Traders’ Conference in Haldwani that a wide publicity campaign will be run for the accident insurance of GST-registered traders, enabling timely claims by dependents.

Scheme Benefits

The Trader Accident Insurance Scheme provides the following benefits to the family of a registered trader in the event of accidental death:

• Insured amount: ₹10 lakh to the dependents on the accidental death of the trader.
• No premium: The trader does not pay anything; the State Tax Department arranges the cover through the selected insurer.
• Automatic cover: No separate registration or form is needed to join the scheme.
• Time-bound settlement: The insurance company must pay the claim within 3 months of submission.
• Penal interest on delay: If the insurer delays payment beyond 3 months, it must pay 10% annual interest for the delayed period.
• Mode of payment: The heir receives the amount by cheque through the Joint Commissioner (Karya), State Tax.
• Late claims after policy period: If the accident happens within the policy period but the claim comes after the period ends, the insurer must still settle it within 3 months.

Eligibility Requirements

To avail the benefits of the Trader Accident Insurance Scheme, the following eligibility criteria must be fulfilled:

Who is Eligible

• The businessman should be a permanent resident of Uttarakhand.
• Sole proprietorship firm, partnership firm, or Hindu Undivided Family (HUF).
• The proprietor of a sole proprietorship, the partner of a partnership firm, or the karta of an HUF business.
• Traders registered on the scheme start date get covered automatically; traders who register during the scheme period get covered from the effective date of registration.
• The death must result from an accident during the scheme period.

Who is Not Eligible

• Limited companies
• Societies, clubs and associations
• Central or State Government departments and commercial undertakings
• Other authorities or bodies
• Traders whose GST registration has been cancelled (cover ends from the date of cancellation)

Who Receives the Claim Amount

A clear order of priority is prescribed to decide which dependent receives the insured amount, as given below: 

• Legally married spouse: The insurer first pays the legally married wife or husband of the deceased trader. If two or more legal wives are alive, they share the amount equally.
• Nominee: If no spouse is alive, the amount goes to the nominee whom the trader named for this insurance before death.
• Legal heir: If there is no spouse and no nomination, the insurer pays the heir named in a succession certificate issued by a competent court.

Note: In every case, the payment happens on the recommendation of the Joint Commissioner (Karya), State Tax. The insurance company also carries the responsibility of getting proposal and nomination forms filled out by registered traders.

How to Apply / Enrol under the Scheme

• There is no separate application or enrolment process required under the Uttarakhand Trader Accident Insurance Scheme.
• All eligible traders who are registered under GST with the State Tax Department (sole proprietorship, partnership firms, and Hindu Undivided Family) are automatically covered under the scheme from the effective date of their registration.
• Coverage continues as long as the GST registration remains active. If the registration is cancelled, coverage ends automatically from the date of cancellation.

How to File a Claim

• In case of accidental death of an eligible registered trader, the legal heir / dependent / nominee must file the claim.
• The claim has to be submitted offline through the concerned Joint Commissioner (Work), State Tax, of the geographical area where the trader was registered.
• Ask the office for the claim format and the list of documents required by the insurance company.
• The claim must be submitted within 90 days from the date of accidental death.
• After receiving the claim, the Joint Commissioner (Work) checks the claim and forwards it to the insurance company for settlement.
• The insurance company must settle the claim within 3 months of its submission. If it delays beyond 3 months, it must pay 10% annual interest for the delayed period.
• The insurer issues a cheque in the name of the heir, and the heir receives it through the office of the Joint Commissioner (Karya), State Tax.

Note: There is no common last date. Each claim must reach the department within 90 days of the date of the accidental death.

Claim Process

• The dependent/legal heir submits the claim to the concerned Joint Commissioner (Work), State Tax.
• The Joint Commissioner (Work) examines the claim and recommends it to the insurance company.
• The insurance company processes the claim and makes the payment.
• Payment is made preferably to the legally married spouse. In the absence of a spouse, it is made to the nominee (if nominated) or to the legal heir on the basis of a succession certificate issued by a competent court.
• Payment is made by cheque in the name of the beneficiary through the Joint Commissioner (Work).

Documents Required to File a Claim

To process a claim smoothly under the scheme, the following documents must be submitted:

• A duly completed and signed claim form submitted by the claimant.
• A certified photograph of the claimant, not older than six months.
• A certified copy of the death certificate of the insured trader, in case of death.
• A certified copy of the post-mortem report of the insured trader, in case of death.
• A certified copy of the accident report/FIR.
• A certified copy of the insured trader's Commercial Tax Registration Certificate.
• Complete details of the nationalised bank account, including the account number and IFSC code, of the trader/claimant/legal heir.
• Copies of the identity proof and PAN card of the trader/claimant/legal heir.

Important Conditions

• In a partnership firm or HUF, more than one person may hold an interest, but only one dealer (firm) can receive the benefit once per scheme period, and the payment goes to the dependents of the deceased.
• If more than one partner of the same firm dies in one accident, the insurance company divides the insured amount equally among the dependents of all the deceased partners.
• Traders can verify their GST registration status on www.gst.gov.in. If a new or cancelled registration does not show on the website for unavoidable reasons, the decision of the Department/CBIC is final.

Relevant Links

• State Tax Department, Uttarakhand Portal
• GST Portal, Government of Uttarakhand
• Guidelines of Uttarakhand Trader Accident Insurance Scheme

Contact Information

• State Tax Department, Uttarakhand Helpline Number: 1800120122277
• GST, Uttarakhand Toll-Free Helpline Number: 1800 889 7177
• GST, Uttarakhand Helpdesk Email: [email protected]