Glossary
Compliance and insurance glossary
Plain-language definitions of the terms you’ll meet in labour law, licensing, environmental consent, and business insurance.
Compliance & licensing terms
- Compliance calendar
A schedule of a business’s recurring obligations, such as monthly contributions, periodic returns, and licence or consent renewals, so that each is handled before it falls due.
- Consent to Establish (CTE)
An MPCB consent that generally relates to setting up, expanding, or modifying a covered activity. Where it applies, it is typically obtained before establishment or construction of the regulated operations begins.
- Consent to Operate (CTO)
An MPCB consent that generally relates to running a covered activity. Where it applies, it is typically needed before operations start and must be renewed within its validity period.
- ESIC
The Employees’ State Insurance Corporation, which runs a social security scheme providing medical and cash benefits to eligible employees. Covered establishments register, record eligible employees, and pay contributions.
- Factory licence
Permission that premises meeting the legal definition of a factory need before and during operation. In Maharashtra, factory licensing is handled by the Directorate of Industrial Safety and Health (DISH). Licences carry renewal and update obligations when operations change.
- Labour law compliance
Following the employment laws that apply to an employer, such as rules on wages, working conditions, registers, notices, and registrations. Requirements come from central and Maharashtra state legislation and vary by establishment and workforce size.
- MPCB
The Maharashtra Pollution Control Board, the state authority that administers environmental consents and authorizations for industrial and other covered activities in Maharashtra.
- Provident Fund (PF / EPF)
A retirement savings scheme for employees, administered by the Employees’ Provident Fund Organisation (EPFO). Covered employers register, maintain employee records, and remit employer and employee contributions on a monthly cycle.
- Shops and establishments registration
A registration that shops, offices, and other commercial establishments in Maharashtra may need under the state’s shops and establishments law, depending on their size and type.
- Statutory compliance
Meeting the legal obligations that apply to a business because of the laws it operates under: registrations, licences, records, returns, contributions, and renewals. What applies depends on the type of establishment, its activities, and its workforce.
- Statutory registers
Records an employer is required to maintain, such as employee, wage, attendance, and leave records, along with notices that must be displayed. They are commonly reviewed during inspections.
Insurance terms
- Cashless hospitalization
An arrangement where the insurer settles eligible hospital bills directly with a network hospital after pre-authorization, instead of the patient paying and claiming later.
- Deductible (excess)
The part of a claim the policyholder bears before the insurer pays. Policies may set it as a fixed amount or a percentage of the claim.
- Exclusion
A situation, cause, or item a policy does not cover. Exclusions are listed in the policy wording and are as important to read as the cover itself.
- Family floater
A health policy in which eligible family members share one common sum insured instead of each having a separate one.
- Fire and special perils
Property insurance that covers loss or damage from fire and a defined list of other perils, as specified in the policy. Commonly used for factories, warehouses, and commercial premises.
- Group Medical Coverage (GMC)
A health insurance policy an employer arranges for an eligible group, usually employees and sometimes their dependants, covering hospitalization expenses under one master policy.
- Group Personal Accident (GPA)
A group policy that pays specified benefits if a covered member suffers accidental death or disability. It addresses accidents, not illness.
- Own damage cover
The part of a comprehensive motor policy that covers damage to the insured vehicle itself, subject to policy terms and deductibles.
- Professional indemnity
Cover for specified claims alleging a professional error, omission, or negligence in services provided to clients.
- Public liability insurance
Cover for specified legal liability to third parties for injury or property damage arising from a business’s premises or operations.
- Sum insured
The maximum amount an insurer will pay under a policy or a section of it. For property, it is usually based on the declared value of the insured assets and the valuation basis in the policy.
- Third-party motor insurance
Motor insurance covering legal liability for injury to others or damage to their property caused by the insured vehicle. It is generally required by law for vehicles used on public roads in India.
- Underwriting
The insurer’s process of assessing a risk and deciding whether to cover it, on what terms, and at what premium.
- Waiting period
A period after a health policy starts during which certain conditions or treatments are not covered. Pre-existing conditions commonly have a waiting period.
- Workers compensation insurance
Insurance that covers an employer’s specified legal liability to pay compensation when employees suffer work-related injury, disability, or death, subject to applicable law and policy terms.
Tell us what you run. We’ll tell you what needs attention.
A short call is usually enough to see which licences, registrations, and policies apply to your business, and what to do first.