Small and Medium-sized Enterprises (SMEs) play a pivotal role in the Indian economy and are aptly called India's 'engine of growth'. If one simply looks around, they would witness a silent SME revolution happening in India. Right from local general stores, local family businesses, to medium-size businesses, SME's have been on the rise and have slowly and steadily becoming the backbone of the Indian economy. However, in spite of the remarkable growth that it has showcased in the recent years, the SME industry faces a number of challenges that hinder it from reaching its full potential.

One such challenge is its vulnerability to uncertainty or unpredictable events such as natural calamities, riots, etc. SMEs lack the luxury of resources and financial muscle to quickly recover from unforeseen events that large companies possess. SMEs are mostly entrepreneurial ventures where the promoter has invested his lifelong savings or borrowed exorbitant amounts of money from creditors. Therefore, without the financial security of insurance, the possibility of a natural calamity, riot, political unrest, or any malicious act can leave question marks on the bare survival of the organization.

In spite of this scenario, the subject of Insurance often brings out an indifferent response from SMEs. Most consider it a superfluous expense forced upon them by banks, while others view it as an expense which is more of a luxury rather than a necessity. Lack of insurance awareness, price sensitivity, and trifling profits makes insurance the last priority for SMEs.

Insurance instills confidence in SMEs so they can focus on their business activities with the knowledge that their assets are covered against any uncertainty. It empowers companies to function without bothering about probable losses or legal liabilities. Still not convinced about the importance of SME Insurance? Let’s breeze through a list of reasons on why SME Insurance can be a game-changer:

1. Securing company resources: Ensuring the safety of assets such as property, equipment, automobiles, inventory, and computers against unforeseen events such as fire or floods is essential for any company. It would be penny-wise and pound foolish to let the cost of an insurance premium outweigh the security of business assets.
2. Safeguarding your employees: Employees are the most valuable assets of an organization. Therefore, insuring their health is crucial for any organization big or small. In addition, as per Worksmen’s Compensation Act 1923, employers are obligated to provide compensation to employees in case of job-related accidents or death.
3. Protecting from Legal Liability:  We live in a society where legal disputes are a common affair. For a small business, a single lawsuit is enough to wipe out their entire capital. A single accident, contract breach, irritated employee is all it takes to shut up shop. The best case scenario of winning the legal battle can also take down an organization as the legal expenses would burn a hole in the finances of the company.
4. Keeping Business Interruption expenses at bay: Covering assets and employees against natural calamities and malicious activity is one thing. But what about the loss of potential business during the period where the company remains closed? SME Insurance can also cover loss of income for the time the business operations are halted playing a big role in helping the organization survive.
5. Offering Credibility: Apart from security, SME Insurance brings to the table the tag of being a credible business. Prospective or existing clients are more confident to do business with an organization knowing that the organization is prepared for unforeseen circumstances or uncertainties. Insurance establishes a company as a safe bet.

To sum up, in spite of the rise of SME insurance products and the flexibility of customizations available, insurance is still an under-penetrated product in the SME sector. It’s safe to conclude that insurance is absolutely critical especially for the SME industry and it can offer peace of mind needed to keep small and medium businesses in business.

Small and Medium Enterprises are experts at what they do but they are seldom experts in insurance. Therefore, it is always recommended to take assistance of the wealth of knowledge that an insurance broker has to offer while opting for an Insurance policy. Let’s understand why an insurance broker plays a vital role while opting for SME Insurance:

1. Enhance your coverage and reduce your premium: Insurance brokers understand the intricacies of sme insurance and having them on your side can empower you to get a better coverage at a cheaper premium. In addition, they can also recommend you opt for the most apt coverage and to get rid of superfluous coverage to save you money and to widen your protection. After all, opting for a wrong coverage can prove to be costly while opting for the right cover can save you millions. It is difficult to realize which covers suit your requirements the most on your own.
2. Swift policy issuance and claim settlement: An insurance broker saves you time both during selecting an insurance package and during claim processing. With great affinity and rapport with insurance companies and surveyors it’s easier for insurance brokers to get your claim settled quickly. Having someone on your side who understands the nitty-gritty of your policy coverage to negotiate the claim with the insurance company can help in getting your business back and running in no time.
3. Periodic review of your insurance requirements: As your business ventures grows in numbers its insurance requirements also increases and it becomes imperative to enhance the number and types of coverage to match your growth. An insurance broker comes in handy to perform an annual assessment of your company to recommend the most apt additions to your coverage.

To sum up, despite the rise of SME insurance products and the flexibility of customizations available with the policy, insurance is still an under-penetrated product in the SME sector. It’s safe to conclude that insurance is crucial especially for the SME industry and it can offer peace of mind needed to expand your company even during unforeseen and unpredictable situations.

At any given time on our planet Earth, there are 1,800 thunderstorms in progress—and with them comes lightning. Property damage from lightning is covered by various products of fire line of business and the comprehensive portion of motor insurance of your car—but bodily harm from lightning isn't easily remedied.

During a thunderstorm, it's best to take shelter in a house, other structure or a hard topped, fully enclosed vehicle. But as one of these options may not be available to you, your safety and wellbeing may depend on knowing the difference between these lightning myths and the facts. To stay safe in a storm, know the truth about lightning dangers by going through the following list:

Fact: Lightning often strikes the same place repeatedly, especially if it’s a tall, pointy, isolated object. The Empire State Building was once used as a lightning laboratory because it is hit nearly 25 times per year and has been known to have been hit up to a dozen times during a single storm.

Fact: Lightning is indiscriminate, and it can find you anywhere. Lightning may hit the ground instead of a tree, cars instead of nearby telephone poles, and parking plots instead of buildings.

Fact: Sheltering under a tree is just about the worst thing you can do. If lightning does hit the tree, there’s the chance that a “ground charge” will spread out from the tree in all directions. Being underneath a tree is the second leading cause of lightning casualties.

Fact: Lightning often strikes more than three miles from the thunderstorm, far outside the rain or even the thunderstorm cloud. Though infrequent, “bolts from the blue” have been known to strike areas as distant as 16 km from their thunderstorm origins, where the skies appear clear.

Fact: True, being in a car will likely protect you. But most vehicles are actually safe because the metal roof and sides divert lightning around you—the rubber tires have little to do with keeping you safe. Convertibles, motorcycles, bikes, open shelled outdoor recreation vehicles and cars with plastic or fiberglass shells offer no lightning protection at all.

Fact: Lying flat on the ground makes you more vulnerable to electrocution, not less. Lightning generates potentially deadly electrical currents along the ground in all directions—by lying down, you're providing more potential points on your body to hit.

Fact: The human body doesn’t store electricity. It is perfectly safe to touch a lightning victim to give them first aid.

Fact: The presence of metal makes very little difference in determining where lightning will strike. Height, pointy shape and isolation are the dominant factors in whether lightning will strike an object (including you). However, touching or being near metal objects, such as a fence, can be unsafe when thunderstorms are nearby. If lightning does happen to hit one area of the fence—even a long distance away—the metal can conduct the electricity and electrocute you.

Fact: While a house is the safest place you can be during a storm, just going inside isn’t enough. You must avoid any conducting path leading outside, such as electrical appliances, wires, TV cables, plumbing, metal doors or metal window frames. Don’t stand near a window to watch the lightning. An inside room is generally safe, but a home equipped with a professionally installed lightning protection system is the safest shelter available.

Fact: Surge arresters and suppressors are important components of a complete lightning protection system but can do nothing to protect a structure against a direct lightning strike. These items must be installed in conjunction with a lightning protection system to provide whole house protection.

A lightning protection system (LPS) / Lightning arrester (LA) duly earthed provides a specified path on which lightning can travel. A rooftop network of lightning rods or air terminals is connected to a series of down conductors, which carry the current down to a grounding network. In that way, the system safely directs the destructive power of the lightning strike into the ground, which leaves the structure of your home or business and its contents undamaged.

Hope you find these tips helpful and are better prepared against lightning dangers in the future.

Monsoon brings a welcome relief against the tyranny of the scorching summers. People eagerly await the bliss of first rains and it is indeed the most beautiful time of the year. However, monsoon also has an ugly face. Last year, a number of states in India witnessed the wrath of the rain-gods as relentless rain brought peoples life to a standstill. In addition, studies illustrate that a majority of the diseases are contracted during the rainy season. Monsoons are responsible for water clogging and flooding that have a detrimental effect on the overall hygiene and immunity of the body. There is a sudden drop in the temperature in the monsoon, which make the human body weak and susceptible to a plethora of diseases. The overall hygiene level during the monsoon period is extremely low. In case you are wondering why? Let’s list down a few reasons why people fall sick during the monsoon:

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• In the inclement weather, the white blood corpuscles(WBCs) weaken due to frequent temperature fluctuations, thus compromising our immunity
• Monsoon is a flourishing season for the parasites. They find safe-havens in clogged water which are the ideal place for them to lay eggs. As a result they multiply in number
• Rains are a perfect setting for fungal infections. As the moisture in the air increases so does the cases of skin infections and warts

Furthermore, the likelihood of a few deadly diseases such as the following increase manifold due to the aforementioned reasons:
1. Influenza: Caused due to poor hygiene conditions, the common cold is one of the most common diseases of the monsoon season.
2. Cholera: A deadly disease caused due to contamination in water & food during the monsoon
3. Typhoid: A disease caused by waterborne bacteria, Salmonella.
4. Dengue and Malaria: The deadliest mosquito-borne diseases on the rise due the monsoon season.

Considering, the possibility of falling sick rises during the monsoon, and Healthcare inflation in India is increasing at double the rate of overall inflation, it is imperative to protect our self with a Health Insurance Plan that protect us and our family. A comprehensive Health insurance plan will ensure that your treatment costs are covered in case you fall sick during the monsoons.

In line with his thought, Elephant.in endeavours to ease the financial burden of all MSME’s in India by making quality healthcare available to them regardless of their size or turnover.

The Group Mediclaim policies are carefully curated by Elephant.in ensuring exclusive features such as Coverage of pre-existing diseases, Absence of pre-policy medical test & Co-payment, Maternity & New- Born Baby coverage is covered.

Apart from Group Mediclaim Policy, Elephant.in's expertise lies in all SME Insurance Solutions such as Liability Insurance, Workmen Compensation Insurance, Keyman Insurance, Credit Insurance and much more. Get in touch with us at smesupport@elephant.in for more details.

Often when we analyse the claim report of company that has suffered a severe loss under a fire policy, we realise that the company has underestimated its sum insured and hence will not be able to receive adequate compensation for their loss.

In such a scenario, the purpose of insurance as an effective mechanism for loss protection is defeated and it loses its meaning as the insurance policy does not respond in full measure in case of a claim due to inadequacy in sum insured.

Thus, it is of paramount importance to understand the significance of sum insured value under an insurance policy.

Let’s dig deeper into the meaning of the word ‘Sum insured’:

• The sum insured under an insurance policy is the value on which the premium is charged
• It is also the value of maximum liability of the insurance company
• The indemnity provided in a Fire Insurance Policy is based on the appropriate values of assets covered under that policy

What is Sum Insured?

In other words, sum insured is the maximum claim amount. The maximum amount an insurance company pays under the policy is the total Sum Insured. The Sum Insured for each cover is as per policy schedule and applicable individually.  

What is the basis of a Sum Insured?

1. For Building, Plant and Machinery, Furniture, Fixture and Fittings and any other contents: Reinstatement Value
2. For Stocks:
   1. For raw material: Landed Cost at your premises.
   2. For stock in process: Input Cost of the stock at the time of damage
   3. For finished stock: the Manufacturing Cost of the Finished Stock or the Contract Price of goods sold but not delivered
   4. Contract Price is with respect to the goods sold but not delivered, for which the insured is responsible and with regards to which under the conditions of the sale, the sale contract is cancelled by reason of any damage insured under the policy either wholly or to the extent of the damage. The insurance company’s liability shall be based on the Contract Price.
3. Bullion or unset precious stones, any curios or works of art or obsolete machinery and the like are to be covered on Agreed Value basis subject to the valuation certificate being submitted and found acceptable by the insured company.

What is Reinstatement value?

The reinstatement value is a method of claim settlement under a fire insurance policy. In case of reinstatement value, the insurance company reinstates the damaged property or asset by paying its current replacement value as the claim amount to the policyholder.

As a precautionary measure it is recommended to opt for valuation of assets through registered Insurance valuers before incepting the insurance policy.

In Insurance, condition of Adequacy of the Sum Insured under Fire Policy proves very significant and critical during the claim as Insurance surveyor / companies will calculate the current replacement cost of the machinery / asset as on date of incident and the percentage of shortfall in insurance value is being considered for deduction from admissible claim amount.

We need to keep in mind that while ascertaining the values, one need not over insure to maintain the adequacy of sum insured as during the claim any premium paid in excess will not be considered and it will be loss to the policy holder due to excess premium payment. Similarly appropriate measures as stated above needs to be applied to arrive at adequate values to assets to avoid underinsurance.

Final Thoughts:

It is recommended that insurance on Buildings, Machinery, Electronic Equipment, Furniture, Fixture and Fittings are taken on Reinstatement value basis which should represent the present-day replacement value of the respective assets.

The Reinstatement Value clause shall allow the policy to pay the cost of replacement or reinstating the lost asset with asset of the same kind or type but not superior to or more extensive than insured property when new as on the date of loss. In effect it pays new for old without deduction for depreciation.

Hence, proper valuation of assets to fix the sum insured in the policy is of utmost importance to ensure adequate indemnification at the time of a claim. The sum insured needs to be finalised based on careful considerations and should offer adequate protection for the policyholder. Not more. Not less.

With rising medical inflation, Group Mediclaim Policy has become an integral part of the Corporate Employee Benefits.

Consider these factors when choosing the insurance provider for group medical insurance:

1. Affordable Premiums: Being a significant cost to the employer, group medical insurance premiums should be affordable, and plans should be scalable to meet the future needs of the company.
2. Comprehensive Coverage: Choose an insurer that offers a comprehensive coverage, covers pre-existing diseases with no waiting period, no disease-wise limits and multiple add-on benefits.
3. Network of Hospitals:Ensure that the insurer has a vast network of partner hospitals which will help employees avail cashless claims facility.
4. Claim Settlement Ratio: A good payout ratio helps to ensure that the employee’s claims will be settled with ease.
5. Customer Service and Claims Support: It is important that the insurance provider has a 24x7 customer support services to help employees in case of emergencies.

The following are a few reasons why your Corporate Employees are not making the most of their Group Mediclaim Policy:

1. Lack of Awareness: Unawareness about the coverage, exclusions, terms and claim intimation process of the health plan leads to underutilisation of the Group Health Insurance offered by the company.
2. Inadequate Coverage: A low or inadequate coverage might lead to employees undermining the usefulness of the insurance policy.
3. Standardised Coverage:A Group Health Insurance has a one-size-fits-all approach with no optional benefits offered, which is why it isn’t relied upon as a sole medical policy by most employees.
4. Exclusion of Dependent: Since most Corporate Mediclaim is limited only to employees, they end up choosing a Family Health Plan over the Company Group Health Plan.

MSME is one of the most vibrant business sectors of the Indian economy. The total number of micro, small and medium enterprises increased by a CAGR of 18.5% from 2019 to 2020. They are responsible for 27% of the GDP in 2021 alone. MSMEs also accounted for 50% of the total exports of India. They are the backbone of your organization and are often called the growth engine of India.. While the Government of India offers multiple schemes to support them, SME’s as individual owners can take grassroot level measures to support employee well-being. One good way to start is to cover employees under a comprehensive Group health Insurance Policy.

How Group Mediclaim Policy boosts employee morale?:

If employees are valued, they go above and beyond their job roles to contribute more to the organization. Hence, it is critical to make them feel valued by safeguarding them against medical emergencies. Let’s go through a list of reasons on how opting for a Group Mediclaim Policy boosts employee morale.

1. Boost their productivity : It is a no-brainer that happy employees are more productive employees. If your employees are protected by a medical plan, their health conditions will be promptly addressed without financial constraints. That means they can get back to work with sound health. This, coupled with the feeling of being valued, will motivate them to boost their productivity. In turn, this will benefit your company's growth.
2. Retain Employees: If your employees feel valued, they will remain loyal to your organisation. This can help you retain them. The health cover can ensure their mental and physical well-being. This can improve job satisfaction and help build a healthy work culture. So, the employees would think several times before leaving your company and these perks.
3. Be more competitive:If one needs to choose between companies with similar work cultures, pay and incentives, the candidate will choose you if you offer added employee benefits like group health insurance. You can even take a step further to extend the medical cover to the employees' families. This contribution to your employees' wellness can increase your organisation's reputation in the market, win more customers and fuel business growth.

Group Mediclaim Benefits that make your company stand-out:

The following is a list of benefits that are a must have in case you are looking for a Group Mediclaim Policy:

1. Customised insurance benefits
2. Digitised hassle-free claim support
3. Flexible coverage combinations from different insurers
4. A tech-enabled platform that comes with Phygital functionalities
5. Discounted offerings on healthcare services
6. Customised health check-up
7. Quick assistance for claims update
8. Ongoing fitness activities like real-time fitness monitoring and gamification
9. Diagnosis-driven wellness programme
10. Multi-dimensional tool to evaluate health and assess health risks comprehensively

Opt for an insurtech provider such as Elephant.in to make the most of technology to boost the health insurance benefits for your employees. It is a good idea to read the terms and conditions and FAQs beforehand to be able to ensure a smooth procedure.

An Adobe Survey called ‘The Future of Time’ conducted on 5,000 SME owners and enterprise workers globally in August 2021 found that 56% employees now work longer hours.

The work pressure these days can be unpredictable since more and more employees are respond to mails even after clocking out for the day. Tough projects can be exhausting as well. All of these may lead to risks of depression, anxiety, coronary heart problems and strokes. Therefore, it's high time Employers looked after the health of their employees. If employees fall, companies fall too. As of April 2020, following the COVID-19 pandemic, the Government of India has made it compulsory for employers to cover their employees under Group Mediclaim Policy. So, if you as a business owner haven't already protected your workers under a group health plan, time to act now.

Why Employee Wellbeing matters?

Your employees are your biggest assets and your biggest ambassadors. No doubt, their wellbeing and health should be a priority for you. The support they receive from their employer helps them to thrive, boost productivity reduce stress and promote a healthy work life balance which in turn contributes to the better financial results. Not convinced? Here are more reasons why you should focus on overall well-being of your employees.

1. Better Performance : You can't expect your employees to fall ill less frequently. But by insuring them, you can take away their financial stress when they fall sick and need treatment. This will improve their mental well-being and job satisfaction. It will reflect in their boosted productivity and better performance which are essential for your company's growth.
2. Retention of Employees: If your employees feel cared for and valued, they will think twice before leaving your company. Healthy work culture is crucial for their growth. Once they get that in your organisation, they will naturally remain loyal to you.
3. Being an Employer of Choice:If you offer more employee benefits than another company that has the same work culture and pay, a candidate will choose you. Even if both companies offer medical insurance, you can stand out by extending the cover to the immediate family of the employees. That way, your company can stand out in the competitive market and win good candidates. Besides, when your employees remain healthy, their performance boost can make your company prosper and be a tough competition.

A PwC 2021 Employee Financial Wellness Survey found that 63% of Indian employees have been experiencing stress due to financial strain. Insurtech companies such as Elephant.in understand how health insurance is evolving with changing times and can be optimised with the support of technology. Therefore, consider opting for a group health plan from a reputed insurtech provider today to safeguard your employees.

Your company has insured you, but you are still clueless about how to make claims?

This handy document tells you all about 'what to be on top of' and 'what to avoid' to make your claims quick and hassle-free!

1. E-card handy : Do keep photocopies of the E-Card with you in office & with family members at home or save images of ID Card on your smartphone for immediate reference
2. Network Hospital: For planned hospitalization, ensure you select a network hospital as they would offer cashless facility
3. Photo-id of Patient:Do carry photo ID of Patient (Pancard / Aadhaar Card) during admission in hospital along with photo-copy of insurance ID Card
4. Pre-Authorization :For planned hospitalization, check for Pre-Auth(cashless process) approval 2 days in advance of admission date.
5. Previous consultation papers/reports : Do carry all previous consultation papers/reports prior to hospitalization along with you at the time of admission
6. Keep one set of photocopy :Do keep one set of photocopy of all documents submitted for reimbursement. Also, for cashless hospitalization claim, collect photocopies of all documents related to hospitalization.
7. Carry Cash for Deposit : Do carry cash even for cashless claims, since as per hospital process minimum refundable deposit to be kept with hospital as security. This deposit will be refunded once hospital receives payment from the insurer. Till claim settlement of employee should keep refundable deposit receipt safely.

1. Pre-Authorization : Forget to collect break-up of each amount mentioned in bill & to collect proper payment receipt of the hospital, as required for reimbursement process.
2. Claim Intimation : Forget to intimate the claim via email immediately within 24 hrs. of admission.
3. Document Submission : Forget to submit hospital documents along with claim from within 15 days from the date of discharge
4. Newly-married employee : Forget to update details of spouse (for newly married employee) for enrollment in Group Mediclaim Policy within 15 days from date of marriage.
5. New-born baby : Forget to update details of new-born baby for enrollment within 15 days of date birth for enrollment of baby in Group Mediclaim Policy.