Moneycontrol
/home/moneycontrol/commonstore/commonfiles/headband_data_live.json
Array
(
    [0] => Array
        (
            [title] => Exclusive keynote by MSME Minister Nitin Gadkari at Small Business Virtual Summit with CISCO on 17th July - Register Now
            [lp_url] => https://www.moneycontrol.com/cisco-smb-virtual-summit/?utm_source=moneycontrol&utm_medium=headband&utm_campaign=cisco_smb
            [ga_event_tracker] => Array
                (
                    [category] => Register-webinar
                    [action] => From-Home
                    [label] => Register-webinar
                )

            [start_date] => 2020-07-08 00:00:00
            [start_date_epoch] => 1594146600
            [end_date] => 2020-07-10 16:00:00
            [end_date_epoch] => 1594377000
            [rank] => 1
        )

    [1] => Array
        (
            [title] => LIVE Webinar: RSI - 5 Star Trading Strategy Webinar by Vishal B. Malkan . Watch Now!
            [lp_url] => https://www.moneycontrol.com/ms/malkansviews/?utm_source=Moneycontrol&utm_medium=Headdband
            [ga_event_tracker] => Array
                (
                    [category] => Watchnow-webinar
                    [action] => From-Home
                    [label] => Watchnow-webinar
                )

            [start_date] => 2020-07-10 16:00:00
            [start_date_epoch] => 1594377000
            [end_date] => 2020-07-10 17:00:00
            [end_date_epoch] => 1594380600
            [rank] => 2
        )

    [2] => Array
        (
            [title] => Tune in on 17th July for the Small Business Virtual Summit with Cisco. Register now!
            [lp_url] => https://www.moneycontrol.com/cisco-smb-virtual-summit/?utm_source=moneycontrol&utm_medium=headband&utm_campaign=cisco_smb
            [ga_event_tracker] => Array
                (
                    [category] => Register-webinar
                    [action] => From-Home
                    [label] => Register-webinar
                )

            [start_date] => 2020-07-10 17:00:00
            [start_date_epoch] => 1594380600
            [end_date] => 2020-07-17 11:00:00
            [end_date_epoch] => 1594963800
            [rank] => 3
        )

    [3] => Array
        (
            [title] => Special Offer: Subscribe to Moneycontrol PRO at ₹1 per day for the first year. Use Coupon: PRO365.
            [lp_url] => https://www.moneycontrol.com/promos/pro.php
            [ga_event_tracker] => Array
                (
                    [category] => PRO365
                    [action] => From-Home
                    [label] => Ribbon
                )

            [start_date] => 2020-07-17 11:00:00
            [start_date_epoch] => 1594963800
            [end_date] => 2020-07-31 23:00:00
            [end_date_epoch] => 1596216600
            [rank] => 4
        )

)
Array
(
    [count] => 1
    [data] => Array
        (
            [0] => Array
                (
                    [title] => Tune in on 17th July for the Small Business Virtual Summit with Cisco. Register now!
                    [link] => https://www.moneycontrol.com/cisco-smb-virtual-summit/?utm_source=moneycontrol&utm_medium=headband&utm_campaign=cisco_smb
                    [ga_event_tracker] => Array
                        (
                            [category] => Top Band
                            [action] => Virtual Summit
                            [label] => From-Home
                        )

                )

        )

)
Tune in on 17th July for the Small Business Virtual Summit with Cisco. Register now!
Last Updated : Aug 24, 2015 04:26 PM IST | Source: Moneycontrol.com

Mistakes that entrepreneurs make by ignoring insurance

This may be the best time to start business in India. However, many entrepreneurs make the mistake of ignoring insurance. Here is why they should take due care by purchasing right insurance products.

Amit Kukreja

India is the second largest market for startups and small and medium enterprises after the USA. Entrepreneurship is on the rise and there could not be a better time to turn your business idea into a successful venture. Entrepreneurs are full of confidence and zeal when they set out for their business venture, however the enthusiasm fizzles out when they face the uncertainties of their journey. Most small business owners often use their personal savings or money borrowed from friends and family to fund their startup. This exposes them to risks that occur due to financial instability. In sheer excitement of pursuing the entrepreneurial journey they make some mistakes by ignoring insurance.

Insurance has been the biggest risk mitigation system for over 100 years now. Several entrepreneurs and business owners who come to me for financial planning advice do not have insurance and they prefer spending long hours with me on investments planning. Here are some mistakes that the entrepreneurs make while they are going through the grind.

• Ignoring the “human life” value

Every individual has an earning capacity. If you put all your future earning potential with a 10% increment every year, and bring the future value to present value by adjusting for inflation, you will arrive at a figure that denotes your human life value. Human life value is the economic value that a person brings to the family. This human life value must be insured. Never ignore your life insurance. To a family that you belong, you are an entity capable of bringing money that you determined above. Any loss of such income to the family must be insured by buying a life insurance.

Before you make that entrepreneurial plunge, ensure your life insurance is in place. And if you have been keeping the policy in effect, ensure the sum assured is in sync with some practical number that you feel should suffice for your family if you are not around. The financial goals and liquidity that your family would need to stay afloat is the minimum life insurance value you should go for.

• Ignoring the health risks

Today’s lifestyle has changed significantly. People spend hours at work without a break. People drive for hours to get to office or home. Fitness routine is at the bottom of their list. Work has taken over as the only focus in life. Cost of hospitalization, health care, and medical treatment has increased at the rate of 10-12% per annum in last decade. If you don’t have medical insurance for yourself and your family, you are bound to lose your savings or a portion of your investible surplus that was earmarked for a financial goal. Are you continuing your medical cover that you had before? Or do you need to change your health insurance service provider? Is the waiting period on the policy over? Is the policy portable to another service provider? Is there any lapse of medical cover due to the change? Is the policy in effect if you become an entrepreneur? These are some of the questions you need to answer before you make that decision to be on the entrepreneurial journey. Don’t ignore the risks of health. Having a medical plan in place will give you that peace of mind.

• Ignoring the fact that disability can happen to anyone anytime

Disability can happen to anyone in life. This could be total permanent or total temporary disability; this could be partial permanent or partial temporary disability. One must know that they can insure himself or herself against the loss of income due to disability. This type of insurance is normally made available along with personal accident cover. What it offers is that in an unforeseen event of personal accident that one meets with, his temporary disability will be well covered, even if the cost of recovery exceeds the health insurance cover that he or she has through a medical insurance plan. This type of insurance also has a life insurance attached to it if the person loses life due to an accident.

• Ignoring the property insurance

This insurance helps you to prevent the losses against theft, fire, burglary, or any natural calamity like earthquake, floods etc. If you own a house and/or office, remember to keep them insured and keep renewing them every year. This insurance is not very expensive. Keep in mind that only the reconstruction cost will be covered by the service provider in the case earthquake and floods. And in case of theft, fire and burglary of items you would be required to submit the copies of receipts of goods that you lost in the unforeseen event.

• Ignoring the professional indemnity insurance

Entrepreneurs who are in the business of rendering professional advice often ignore this. Professional indemnity insurance covers the business against negligence claims due to harm that may have resulted from mistakes or failure while rendering professional service. This policy covers legal cost and expenses incurred to defend the case with prior consent of the insurance service provider subject to the overall limit of indemnity selected. Remember that such policy covers only civil liability claims. Any liability arising out of any criminal act or act committed in violation of any law or ordinance is not covered.

Business owners or professionals who must consider this insurance include doctors and medical practitioners, engineers, architects, interior designers, lawyers, advocates, solicitors, counsels, chartered accountants, financial accountants, and management consultants.

Author is a member of The Financial Planners’ Guild , India (FPGI). FPGI is an association of Practicing Certified Financial Planners to create awareness about Financial Planning among the public, promote professional excellence and ensure high quality practice standards.
First Published on Aug 24, 2015 04:26 pm
Sections