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:
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:
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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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 firstname.lastname@example.org for more details.
Imagine purchasing a fancy umbrella and still getting drenched in the rain because the umbrella barely covers your body. Frustrating right? Unfortunately, that’s what most people do with their insurance policy.
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’:
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?
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.
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:
The following are a few reasons why your Corporate Employees are not making the most of their Group Mediclaim Policy:
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.
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:
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.
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!
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