The Haryana Chief Minister Trader Compensation Insurance Scheme officially known as Mukhyamantri Vyapari Kshatipurti Bima Yojana or MMVKBY was first launched in 2019 by the Haryana Government and significantly expanded and strengthened from 1 April 2023 onwards. It is implemented by the Haryana Parivar Suraksha Nyas HPSN and the Haryana Traders Welfare Board HTWB under the Industries and Commerce Department of Haryana.
The scheme was born from a very real incident. A devastating fire broke out at the cart market in Sector 9 Panchkula and caused massive financial losses to small traders who had absolutely no insurance protection in place. That incident highlighted just how vulnerable small traders in Haryana were to unexpected disasters and became the trigger for the government to act.
The core idea behind this scheme is straightforward. Small and medium traders work hard, run legitimate businesses, pay their taxes, and contribute to the local economy. But when a disaster strikes — whether it is a fire, a flood, a theft, or a natural calamity — they have no financial protection to fall back on. Most of them cannot afford comprehensive commercial insurance on their own. This scheme bridges that gap completely.
Under this scheme registered traders get insurance coverage for loss of stock of goods, damage to furniture and fixtures, and losses caused by various disasters. The coverage amount goes up to Rs. 25 lakh depending on the annual turnover of the business. The Haryana Government has allocated a total premium budget of Rs. 38 crores for this scheme covering an estimated 3.75 lakh business owners and traders across the state.
Details | Information |
Scheme Name | Mukhyamantri Vyapari Kshatipurti Bima Yojana MMVKBY |
Also Known As | CM Trader Compensation Insurance Scheme |
First Launched | 2019 |
Revised and Strengthened | 1 April 2023 |
Implemented By | Haryana Parivar Suraksha Nyas HPSN and HTWB |
Department | Industries and Commerce Department, Haryana |
Coverage Amount | Rs. 5 Lakh to Rs. 25 Lakh |
Coverage Basis | Annual Business Turnover Slabs |
Premium Payment | Fully Paid by Haryana Traders Welfare Board |
Trader Premium Contribution | Zero — Completely Free |
Total Beneficiaries Expected | Around 3.75 Lakh Traders |
Total Premium Budget | Rs. 38 Crores |
Official Portal |
Here is the complete eligibility breakdown for the scheme:
Residency
The trader must be a permanent resident of Haryana. Traders from other states operating temporarily in Haryana are not eligible under this scheme.
GST Registration
This is a non-negotiable condition. The trader must be a taxpayer registered under the GST Act in Haryana — either under State GST or Central GST jurisdiction. Traders registered under Haryana GST HGST as on 31st March of the relevant year or on the date of registration are eligible. No valid GST registration means no coverage — there are no exceptions to this condition.
Type of Business Entity
The scheme covers proprietorship firms, partnership firms, Hindu Undivided Families HUF, Limited Liability Partnerships LLP, and companies — as long as they are legitimate registered businesses operating permanently in their specific area.
Haryana Traders Association Registration
The trader must hold a valid registration certificate from the Haryana Traders Association confirming they are a recognized member of the trading community in Haryana.
Tax Compliance
The trader must fall under the tax slabs as per the rules of the income department. The scheme is specifically designed for taxpaying traders who are running legitimate registered businesses.
Quick Summary:
Condition | Requirement |
Residency | Permanent Resident of Haryana |
GST Registration | Valid HGST or GST Registration Mandatory |
Business Type | Proprietorship, Partnership, HUF, LLP, Company |
Association Registration | Haryana Traders Association Certificate Required |
Business Status | Permanently and Legitimately Operating in Haryana |
Tax Status | Must be a Taxpaying Trader |
This is the part that makes this scheme genuinely powerful. The coverage amount under the Haryana Chief Minister Trader Compensation Insurance Scheme is not the same for everyone — it is linked to your annual business turnover. The more your business turnover the higher the coverage you receive. Here is the complete turnover-wise coverage breakdown:
Annual Turnover | Insurance Coverage |
Up to Rs. 20 Lakh | Rs. 5 Lakh |
Rs. 20 Lakh to Rs. 40 Lakh | Rs. 10 Lakh |
Rs. 40 Lakh to Rs. 60 Lakh | Rs. 15 Lakh |
Rs. 60 Lakh to Rs. 1 Crore | Rs. 20 Lakh |
Rs. 1 Crore to Rs. 1.50 Crore | Rs. 25 Lakh |
So a small trader with an annual turnover of up to Rs. 20 lakh gets Rs. 5 lakh of coverage. A medium trader with a turnover touching Rs. 1.50 crore gets up to Rs. 25 lakh of coverage. The system is designed to be proportionate and fair — your coverage grows with your business size.
Let us go through every situation this scheme protects you against:
Loss of Stock Due to Fire
This is the most common disaster that hits traders and the one that inspired the scheme in the first place. If your shop’s stock of goods is damaged or completely destroyed in a fire you are covered under this scheme for the value of the loss up to your coverage limit. Whether it is an accidental fire in your own premises or a fire that spread from nearby shops — if your goods are lost in fire you have protection.
Loss Due to Flood
Floods can wipe out everything in a shop within hours. Waterlogged goods, ruined stock, damaged furniture — all of it represents money that is simply gone. Under this scheme losses caused by flooding are covered up to your applicable coverage limit.
Loss Due to Earthquake
Natural disasters like earthquakes that cause damage to your stock and business property are covered under this scheme. Earthquake damage to goods and furniture and fixtures in your shop is eligible for compensation.
Loss Due to Cyclone and Hurricane
Extreme weather events like cyclones and hurricanes that cause physical damage to your shop’s stock and property are covered. If a storm destroys what is inside your shop this scheme ensures you are not left to start over completely empty handed.
Loss Due to Theft and Burglary
This is a significant and practical addition to the coverage. If your shop is broken into and goods are stolen or if a burglary occurs at your business premises you can claim compensation under this scheme for the value of goods lost up to your coverage limit.
Damage to Furniture and Fixtures
The scheme does not just cover your stock of goods. It also covers damage to furniture and fixtures inside your shop caused by any of the covered incidents. So if a fire or flood damages your shelves, counters, display units, and other fixtures those losses are also covered.
What is Not Covered
It is equally important to know what falls outside the coverage of this scheme. Losses caused by the trader’s own negligence or intentional acts are not covered. Normal wear and tear of goods or furniture is not eligible. Losses due to business disputes or contractual issues are not covered. And fraudulent claims are completely disqualified with serious consequences for the claimant.
This scheme comes with an additional benefit beyond just insurance that most people do not know about and it is worth understanding.
The Haryana Government recognised that one of the main reasons traders face repeated losses from fire and flood is that many of them operate from temporary makeshift stalls in open markets with no proper protection for their goods. To address this permanently the scheme includes a provision for traders in urban areas to get access to permanent market booths at discounted rates.
Under this provision the Haryana Urban Development Authority HSVP offers permanent booths of 63 square feet to small traders at a 25 percent discount on the market rate. A booth that would normally cost Rs. 17 lakh is available for Rs. 13 lakh under this scheme. Additionally banks provide loans of up to 75 percent of the booth cost to help traders who cannot pay the full amount upfront. And if the trader pays the remaining amount within 180 days they receive complete interest exemption on the loan.
The government is also investing Rs. 50 lakh in developing proper footpaths, electricity connections, and other basic infrastructure in these market areas. The goal is not just to compensate traders after a disaster but to put them in better and safer business spaces so disasters affect them less in the first place.
Here is another benefit under the expanded 2023 version of this scheme that directly helps small traders. Traders with an annual turnover below Rs. 20 lakh need a CA certificate for GST registration. Getting this certificate from a private Chartered Accountant costs money that many small traders struggle to afford.
Under this scheme the Haryana Government provides these CA certificates completely free of cost through government empanelled Chartered Accountants. The state government bears the entire expense of the certificate. This removes a significant barrier that was preventing many small legitimate traders from getting their GST registration done and accessing formal business benefits.
Before registering or filing a claim make sure you have these documents ready:
For Registration:
- Aadhaar Card of the trader
- PAN Card
- Valid HGST or GST Registration Certificate
- Registration Certificate from Haryana Traders Association
- Business registration documents as per Trade and Commerce Acts
- Bank Account passbook copy in the trader’s name
- Passport size photograph
- Address Proof — Aadhaar, utility bill, or property tax receipt
- Income tax returns or turnover documents to confirm turnover slab
For Claim Filing:
- Completely filled and signed claim form
- FIR from police if theft or burglary has occurred
- Fire Brigade report if the loss was caused by fire
- Survey report or damage assessment report from the insurance company surveyor
- Photographs of the damaged goods, stock, and premises
- Stock register or invoice records showing the value of goods that were damaged or lost
- Damage assessment report for furniture and fixtures
- Bank account details of the trader for direct payment
- All original registration documents
Nobody wants to be in a situation where they need to file an insurance claim. But if something does happen to your business you need to know exactly what to do from the very first moment. Here is the complete process step by step:
The moment anything happens at your business premises — fire, flood, theft, earthquake, cyclone, anything covered under this scheme — your very first move is to get it officially reported immediately. Not tomorrow morning. Not after you have calmed down. The same day it happens.
Fire in the shop? Call the fire brigade right away and make absolutely sure you get an official written fire report from them before they pack up and leave. Theft or burglary? Walk straight to your nearest police station and file an FIR that same day. Natural disaster? Get the incident officially documented through your local authorities as quickly as you possibly can.
Here is why this first step matters so much. Every official document you collect at this stage — the FIR, the fire brigade report, the local authority documentation — becomes the foundation of your entire insurance claim. Without these documents you have no evidence and without evidence you have no claim. The authorities are on site, the damage is visible, and the incident is fresh. Use that window and get everything documented properly before it passes.
Right alongside reporting to the authorities, pick up your phone and inform both the designated insurance company and the Haryana Traders Welfare Board about what has happened. Do not finish one call and then think about making the other one later. Make both contacts as quickly as possible.
This step is critical for two very practical reasons. The first is the deadline. The claim must be filed within the prescribed time limit from the date of the incident and starting this communication immediately keeps you safely within that window. The second reason is the surveyor. When you notify the insurance company early they send their official surveyor to your premises quickly — while the damage is still fully visible and the evidence is completely fresh and untouched. A surveyor who sees the actual state of your shop right after the incident prepares a far more accurate and fair damage assessment than one who arrives days later when things have already been moved around or partially cleaned up.
After you notify the insurance company they will send an official surveyor to inspect your shop and assess the full extent of what was damaged or lost. When that person arrives at your premises give them your complete and total cooperation. Do not hold anything back and do not try to manage what they see.
Take them through everything — the damaged stock, the ruined furniture, the current state of every corner of the premises. Pull out your stock registers, your purchase invoices, your sales records, and every document that shows what was in that shop before the incident happened. Let them see it all.
The reason this matters so much is simple. The surveyor’s damage assessment report is the single document that your compensation amount is directly based on. If the surveyor has complete information and full access they can prepare a thorough and accurate report. If they are given incomplete information or limited access the assessment will reflect that and your compensation will suffer for it. Be completely open and give them everything they ask for.
Once the surveyor has completed their inspection start pulling together every document you need for the claim. FIR if applicable. Fire brigade report if applicable. The surveyor’s assessment report. Clear photographs of the damaged premises, damaged goods, and damaged furniture. Stock registers and purchase invoices proving the value of what was lost. And all your business registration documents. Collect everything into one place and go through it carefully to make sure nothing is missing.
Then get the official claim form from the insurance company or from HTWB and sit down somewhere quiet to fill it in. Take your time with this. Every single detail you write on this form must match your supporting documents exactly — same figures, same names, same dates, same everything. Not roughly, not approximately — exactly. A claim form that is carefully filled, completely accurate, and backed by solid documentation moves through the verification process significantly faster and with far fewer complications than one that has errors, gaps, or missing details. The time you invest in getting this right pays off directly in how quickly your claim gets processed and approved.
Once your claim form is completely filled and every single document is in order do not go to the insurance company and hand things over in multiple visits or batches. Put your entire submission together as one neat and complete package and submit everything at once. Partial submissions just create back and forth, cause unnecessary delays, and give the insurance company a reason to keep coming back to you with follow-up requests that slow the entire process down.
When you hand your complete package over at the insurance company office do not walk out of there without a proper written acknowledgement receipt in your hand. Before you leave, take a moment and actually read that receipt. Is your name on it? Is the submission date clearly written? Does it look official and complete? If yes keep it somewhere genuinely safe — not in a bag you rarely look in but somewhere you will find it immediately if you ever need it.
That receipt is your official proof that everything was submitted correctly and on time. If any question, dispute, or follow-up ever comes up later that receipt is what stands between you and unnecessary complications. Guard it carefully.
Once your submission is in the insurance company takes it from there completely. They go through every document you submitted and review the surveyor’s damage assessment report carefully and thoroughly to confirm that everything is genuine, accurately reported, and properly supported by evidence.
Once they have gone through everything and are fully satisfied your compensation amount is calculated based on the actual damage that was assessed and your specific turnover-linked coverage limit. The moment the approved amount is determined it is transferred directly into your bank account through direct bank transfer. No cash to collect from any office, no additional visits required, no agents or middlemen involved anywhere in the payment chain. The money leaves the insurance company and lands straight in your account transparently and cleanly.
Two small things to double check before this final step happens. First go back and confirm that the bank account number and IFSC code you entered in the claim form are completely correct. Even one wrong digit in the account number means the transfer fails and sorting that out afterwards is a genuinely frustrating and time consuming process. Second make sure your registered mobile number is active and working. That is where your payment confirmation will arrive the moment the transfer is processed and you want to receive it immediately when it comes.
A few critical things every trader must keep in mind:
Report every incident to authorities immediately — the documents you get at that stage are the foundation of your claim. Keep your GST registration, Traders Association certificate, and all business documents updated at all times. Maintain a proper stock register with invoices — you will need this to prove the value of goods that were damaged or lost. The coverage amount is linked to your annual turnover slab so make sure your registration reflects your correct and actual turnover. Never pay any agent or middleman to register or file a claim under this scheme. And always deal directly with the official HTWB office or the designated insurance company for everything related to this scheme.
Contact | Details |
Official Scheme Portal | |
Department | Industries and Commerce Department, Haryana |
Implementing Body | Haryana Traders Welfare Board HTWB |
Official Website | |
Department Helpline | 0172-2701373 |
HPSN Helpline | 0172-2996024 |
The Haryana Chief Minister Trader Compensation Insurance Scheme officially known as Mukhyamantri Vyapari Kshatipurti Bima Yojana is a free insurance scheme run by the Haryana Government for registered small and medium traders. It provides compensation of Rs. 5 lakh to Rs. 25 lakh for losses to stock of goods and furniture caused by fire, flood, theft, earthquake, cyclone, and other natural or man-made disasters. The entire premium is paid by the Haryana Traders Welfare Board. Individual traders pay absolutely nothing.
The coverage under this scheme depends on the trader's annual business turnover. Traders with turnover up to Rs. 20 lakh get Rs. 5 lakh coverage. Traders with turnover between Rs. 20 to 40 lakh get Rs. 10 lakh coverage. Rs. 40 to 60 lakh turnover gets Rs. 15 lakh coverage. Rs. 60 lakh to Rs. 1 crore gets Rs. 20 lakh coverage. And traders with turnover between Rs. 1 crore and Rs. 1.50 crore get the maximum coverage of Rs. 25 lakh.
The scheme covers loss of stock of goods and damage to furniture and fixtures caused by fire, flood, earthquake, cyclone, hurricane, theft, and burglary. Both natural disasters and man-made incidents like fire and theft are covered. Normal wear and tear, losses due to negligence, and business disputes are not covered.
The Haryana Traders Welfare Board pays the entire premium on behalf of all eligible registered traders. Individual traders do not pay anything — not a single rupee. The government has allocated Rs. 38 crores as the total premium budget for this scheme covering around 3.75 lakh traders across Haryana.
Under this scheme small traders in urban areas can get permanent market booths of 63 square feet at a 25 percent discount on market rates through HSVP. A booth normally costing Rs. 17 lakh is available for Rs. 13 lakh. Banks provide up to 75 percent loan on the booth cost and complete interest exemption is available if the remaining amount is paid within 180 days. This helps traders move from temporary vulnerable stalls to permanent protected business spaces.
To file a claim you need your GST registration certificate, Traders Association registration certificate, FIR from police if theft occurred, fire brigade report if fire occurred, insurance surveyor's damage assessment report, photographs of the damaged premises and stock, stock register and invoices showing the value of lost goods, damage report for furniture and fixtures, and your bank account details. Keep all business registration documents and a proper stock register updated at all times because these are the most critical documents when it comes to proving the value of your claim.