Page 19 - Insurance Times September 2021

extract minerals that are not grown through agricultural Risk - Increased stress level, injury or burns etc.
methods, or feasible to create it artificially in a laboratory
or factory. What is Management?
It is the task that involves directing, controlling, planning,
organizing an organization or one of the units. It is the
technique where the goal is reached by working with and
through people with the resources of the organization. It
also involves effective utilisation of manpower and financial
resources.

Who are insured?
Insurance in the mining sector is a specialised form of
insurance. Insurance are generally plans for the individual
and the company who when faced with adversity can get
some recovery.
Figure 1 - Source: Corporate Finance Institute.

Before we move ahead with the actual subject matter, we Few of the insurance cover can be as follows:
need to know few terms related to the industry: Y Emergency evacuation
Y Ore: Rock which contains metal and is economic to mine. Y Disability Income Plans
Y Grade: Amount of metal contained per unit ore. Y Accident Insurance
Y Recovery: Amount of metal that can be recovered from Y Travel Insurance
the ore after the process of extraction.
Y Medical Plans
Y Production: Metal that is produced per year.
Y Group plans etc.
Y Cash Costs: Amount that is required to operate mines,
mills, labour, energy, consumables. It is calculated in It is very necessary to insure all the stakeholders involved
cost per ton of material.
knowing the risks involved in such a high risk occupation.
Even Insurance companies are very keen to give insurance
What is Risk? coverage to the sector which is a major contributor to the
It is any uncontrolled loss resulting from some foreseen and economy.
unforeseen events due to given action or inaction. It can be
in the form of Physical, Emotional, Social or Financial. A slight change in this sector will have impact on many
ancillary industries leading to slowdown in the economy of
Are Risk and Hazard Same? the nation. Hence, it becomes very important to mitigate
Lot of time where we are considering potentially difficult the risks through proper planning and management with the
situations, we use the terms 'Hazards' and 'Risks'. Both are help of experts.
sometimes used interchangeably but are not same when it
comes to the safety. Hazard is likely to cause harm, while Which regions are important?
risk is the possibility of harm when exposed to the hazard. In India, most of the mineral resources are concentrated in
the areas of Odisha, Andhra Pradesh, Chhattisgarh,
Hazard can actually cause harm to the stakeholders involved. Jharkhand, Madhya Pradesh, and Karnataka.
Whereas, Risk has a chance to cause harm but it's not
definite. There are regions which are dominant in particular minerals.
For example: Iron ore is found in Odisha, Chhattisgarh, and
Example: Hazard - Working on heavy machinery, using Jharkhand etc. Manganese is found in Maharashtra,
chemicals, Poor work environment etc. Madhya Pradesh, and Andhra Pradesh etc.

The Insurance Times, September 2021 19