“BUSINESS has several risks in terms of losses and unforeseen futuristic risks that come across with market fluctuations. In this scenario risk transfer facility that insurance offers can be very beneficial,” said Dr Yogesh Bhargava, Founder and MD of Atos Services Private Limited. Dr Bhargava was addressing the online ‘Wisdom Hour’ session on the topic of ‘Understanding of Insurance Industry’ organised by the Vidarbha Management Association (VMA). Dr Bhargava said, “Risk transfer is basically a risk management and control strategy that involves the shifting of a pure risk from one party to another. If you have an insurance policy with you, then a specified risk of loss is passed on from the policyholder to the insurer.”

 

“Thus, the individual or company is safeguarded against any unprecedented risks. It further helps in covering the financial losses at least to the extent of policy coverage. It saves the business from unexpected and huge financial burdens by paying a small amount,” he explained the participants of the online session. Dr Bhargava also unfolded various other topics related to the insurance sector and explaned them in detail. He told the participants that the functions of insurance cover that are providing reliability, protection, pooling of risk, assistance in legal requirements, capital formation among others.

 

He added, “Understand the business of insurance helps you to find advantage that you can get for your businesses”. “Insurance is a scientific business, based on calculations, law of probability and some fixed principles. Also control of Government agency on development, regulation and licensing of the insurance makes it safer,” he added. Dr Bhargava, clarified about numerous terms of insurance sector like underwriting, claims, finance which are often considered difficult. A large number of VMA members and others took part in the event. Vidarbha Management Association is based at Nagpur and meets every Sunday at 10.30 am. VMA is dedicated to impart learnings related to business management and leadership to its members. Vidarbha Management Association is a non-profit organisation and is currently in its 17th successful year of operation.