Training on insurance is an inherent part of any business organization, be it any startup or big organization. Training is an essential factor in running an active business. For employees to know how to operate technology, adhere to processes, and expand their knowledge on products or services – training is the first to build these functional competencies for entrepreneurs to succeed in their role. By providing practical learning opportunities, you invest in your business’s success and show you are committed to developing your operations.
When you run any business, you assume the responsibility of a specific group of people, starting from employees to customers. Business organizations are prone to more risks because of their day to day operations in financial matters that could affect their status and reputation. The world we reside in is full of risks, uncertainties, unidentified and unpredictable events. While it is not always possible to block unwanted incidents from occurring, the financial world has developed ways that protect individuals and businesses against such losses by compensating them with financial resources. Training on insurance has evolved as an essential process to safeguard the business organizations’ interest from uncertainty and damage that may arise in business at any stage.
Training on Insurance
Training on insurance generates employment for millions, especially in India, where savings and jobs are always the priority. Insurance is an arrangement by which a company or any organization undertakes to provide a platform as a guarantee of compensation for a specific loss, damage, illness, death, etc. in return for the amount of a particular premium. Insurance accords a lot to the business organization’s economic growth, and the society at large provides consistency to the business’s functioning.
Training on Insurance also encourages the virtue of savings among individuals/organizations. It’s also essential to have business training on insurance because such Insurance is a must for certain business operations. Contracts require that you be insured in their clauses, and some kinds of Insurance, such as workman’s compensation, are required for all businesses for their smooth functioning.
The importance of training on Insurance to a businessman lies in the following points:
- Safety and security– It gives a sense of security and reliability to the budding entrepreneurs and businessman. It enables them to receive compensation against any loss arising out of business, which they got insured. They can concentrate on the company with a secure feeling that their losses will be compensated in damages resulting from insurable risk. It provides an ideal risk mitigation process against uncertain events that can potentially cause financial distress.
- Long term financial resources-Insurance generate funds by collecting premium. These funds are gainfully utilized in the country’s industrial development to make more funds for the country’s economic growth. Employment opportunity is created by significant investments leading to capital formation.
- Risk distribution– The basic principle of Insurance is to distribute risk among a large number of people. A large number of persons avail insurance policies and pay premiums to the insurer. Whenever a loss pops up, it is compensated out of the insurer’s fund.
- Systematic savings– Insurance also provides for the investment channel. It inculcates regular savings habits, as in the case of life insurance. Life insurance provides for systematic savings due to payment of monthly premiums and provides a mode of investment. At the time of maturity, the insured gets the lump sum amount.
- An expected profits-Insured entrepreneur can enjoy the margin of profit. He does not have to live under the threat of running into losses as he is protected from such unexpected losses.
- Secure loan facility– An entrepreneur can get loans quickly if he has his business and associated things insured. This gives the lender as well as the entrepreneur a sense of security.
- Economic growth– Insurance enables to mitigate loss, financial stability, and promote trade and commerce activities, resulting in economic growth and development. Insurance is essential for the sustainable growth of the economy.
- Medical support– Any medical expense arising is of significant concern. Medical or Health Insurance is one of the insurance policies that cater to different types of health risks. The insured gets medical aid in case of the medical/health insurance policy.
As an Aatmnirbhar Sena, we provide twenty-four seven assistance to the budding entrepreneurs and other small businesses in getting their business insured to provide a shield from any uncertainties. Making them realize the need and importance of Insurance via training on insurance in the current scenario is our plan. Once they are convinced, the next task that lies on our way is to make them avail of the insurance policies and co-operating with them in the procedure of getting the Insurance done.
