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Let’s be honest, insurance can feel like a different language. Premiums, co-pays, exclusions… It’s like reading a contract in Morse code.
But if you run an MSME or are part of one, understanding insurance isn’t just helpful—it’s essential. Whether you’re offering it to employees or getting cover for your business, this guide will help you decode the basics.
So, here’s insurance translated into plain English.
In simple terms, insurance is a promise. You pay a small amount regularly (called a premium) to get financial support when something unexpected happens, like illness, accidents, or death.
It’s peace of mind for when life doesn’t go according to plan.
1. Premium: The amount you pay for your insurance policy. Think of it as your subscription fee for staying protected.
2. Sum Insured: The maximum amount the insurer will pay when a claim is made. Example: If your health insurance has a ₹5 lakh sum insured, that’s your yearly coverage limit.
3. Deductible: The amount you pay from your pocket before insurance kicks in. Example: If you have a ₹2,000 deductible and a ₹10,000 hospital bill, the insurer pays ₹8,000.
4. Co-pay: A fixed percentage that you agree to pay for a claim. Example: A 10% co-pay on a ₹1 lakh bill means you pay ₹10,000, the insurer pays ₹90,000.
5. Pre-existing Disease: Any illnesses you had before getting the insurance? Some policies may not cover these for a certain period, so check before you sign.
6. Waiting Period: The time after buying the policy during which some things aren’t covered. Example: Maternity cover might have a 2-year waiting period.
7. Network Hospitals: Hospitals tied up with your insurer, where you can get cashless treatment (i.e., no need to pay upfront).
8. Exclusions: Things your policy doesn’t cover. It could be cosmetic surgeries, dental work, or adventure sports injuries. Always read this part carefully.
9. Term Insurance: A type of life insurance that pays a lump sum to your family if something happens to you during the policy term. It’s affordable and pure protection no returns, just support.
10. Personal Accident Cover: Coverage for injuries, disabilities, or death due to accidents. Especially useful if you or your team work in physically risky roles.
Understanding these terms helps you make better decisions, whether you’re: Buying group health cover for your team getting term insurance for yourself choosing personal accident protection for field workers
Insurance isn’t just paperwork. It’s a safety net that builds trust and shows your team (and your family) that you’ve planned for the unexpected.
That’s okay. Most insurance providers don’t explain things simply, but that’s exactly why ShiftRisk exists.
We’re here to make insurance feel less like a maze and more like a checklist. So, you can protect your team, your business, and yourself with clarity.
WhatsApp us at +91-97025 55550 with “Explain insurance, please.” Or book a free consultation. No pressure. Just answer in your language.
