There's good news for Jammu and Kashmir’s tourism industry. In a first-of-its-kind initiative in the country, the state government has decided to provide the industry an insurance cover, envisaging compensation for the losses due to the ‘ongoing’ uncertainty in the state. Officials said the scheme will be on the pattern of the crop insurance scheme.

Tourism Minister Nawang Rigzin Jora said, “We are starting an insurance scheme for the people associated with the tourism industry to compensate them for the losses suffered due to the militancy. This is the first of its kind insurance scheme in the country and we are finalising the modalities for it.”

Officials said the premium for the insurance scheme will be decided by the government after consulting some insurance agencies and the recurring yearly loss will be paid by the insurance agencies to the businessmen in the tourism sector. Any shortfall in the projected business shown by the people associated with tourism trade will be compensated by the insurance agencies.

Jammu and Kashmir’s Economic Advisor Jalil Ahmed Khan said, “Each year before the beginning of tourism season people associated with the industry take loans from the banks for their businesses. But even one untoward incident means loss and liabilities for them. We are providing them with an insurance scheme so that they don’t incur debts. Part of the premium for the scheme will be paid by the policy-holder and part will be paid by the government,” he said.

According to sources, though the state will hold discussions with the insurance agencies operating at the national-level, preference will be given to the Jammu and Kashmir Bank.