General insurance Simple facts you should know about insurance company

I want to pinpoint what the poster said in the last paragraph. I have always being saying it that insurance is not a charity house. One should not see it as the solution to any problem. Insurance can never make you happier than how you were before the loss, they will only reduce your sadness.

This is nothing but fact about insurance company and that is how they operated. Most of the people do not take there time to know how they operate before they will take up insurance policy mainly because they want to enjoy the benefit they see people enjoying. I belive they ought to ask some question even from the insurer before they enter in to the contract but some people are too know.

Augusta said:

Yeah I think people sometimes don't understand the real essence of insurance. It is not to make more money because even the insurance company is out to make profit. They are just to restore one back to the former position before a loss not to give you a better option than you were before now. People need to understand this.

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I do see insurance as a game of chess between the insurance company and the investors. The reason is that while the insurance company will be trying not to get involve in any risk that has high chance of happening, the investors too will be trying to get himself in insurance with high tendency of happening

Augusta said:

I used to think that there is really low level of information or awareness about the insurance company. Like my area people don't really know about insurance company and how it works.i think it high to that those in that industry move out to enlighten people more about insurance company. People need to be more aware

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Yeah more enlightenment need to be done , the people that don't Know about insurance should make proper research about it and most would actually think you are trying to scam them when you try to tell them about it , they would think you are trying to scam them , which is really a bad thing

Nite said:

Insurance, like all the other business models, has to be profitable. These insurance companies have to cover their costs and make a profit to stay in the business. The more clients they can get, the better their chances of making profit. They have to be strict in what they are doing, because afterall they need to survive in their business.

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You are so right about this, insurance company are also looking out for their profit as such they would take a lot into consideration before making any kind of payment for a claim.. people need to know this and refrain from trying to game the system because a lot of time they can't win for any compensation

Insurance, like all the other business models, has to be profitable. These insurance companies have to cover their costs and make a profit to stay in the business. The more clients they can get, the better their chances of making profit. They have to be strict in what they are doing, because afterall they need to survive in their business.

Wisdom01 said:

Yeah they know and many of them are more experienced in such area ,so they would do all they could do take precautions and make sure they are more careful , but I think public enlightenment too could help spread more awareness on how the system work and how the defaulters would be punished if there is a breach in a agreement

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I used to think that there is really low level of information or awareness about the insurance company. Like my area people don't really know about insurance company and how it works.i think it high to that those in that industry move out to enlighten people more about insurance company. People need to be more aware

The monthly premium for the insurance is computed to favor the insurance company. Included in the computation is the cost of money. A policy that you will pay for 20 years would be valued at less than half when the policy matures. The insurance company had already earned by using the premium that you paid earlier.

Augusta said:

Yeah with this coming with some punishment they would have been running the system to huge losses. Well, the insurance companies are run by humans so they know too that humans can be pretty funny with money stuff. So they are very careful not to get into issues that will make them lose big

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Yeah they know and many of them are more experienced in such area ,so they would do all they could do take precautions and make sure they are more careful , but I think public enlightenment too could help spread more awareness on how the system work and how the defaulters would be punished if there is a breach in a agreement

Wisdom01 said:

I know that despite the punishment people are still Making false claims , I think the fact is that ,the punishment should be attached so it would be able to scare them on carrying out fraudlent practices , imagine if there was no punishment the crime and fraudulent activity would have been very high

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Yeah with this coming with some punishment they would have been running the system to huge losses. Well, the insurance companies are run by humans so they know too that humans can be pretty funny with money stuff. So they are very careful not to get into issues that will make them lose big

Augusta said:

The funny thing is that with all the terms and conditions people don't care because they still try to make the system by bringing to the insurers false claims and sometimes over exaggerating the claims. It is good there's a punishment in place so that defaulters will not go Scot free for trying to game a system

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I know that despite the punishment people are still Making false claims , I think the fact is that ,the punishment should be attached so it would be able to scare them on carrying out fraudlent practices , imagine if there was no punishment the crime and fraudulent activity would have been very high

btaliat said:

I want to pinpoint what the poster said in the last paragraph. I have always being saying it that insurance is not a charity house. One should not see it as the solution to any problem. Insurance can never make you happier than how you were before the loss, they will only reduce your sadness.

Click to expand...

Yeah I think people sometimes don't understand the real essence of insurance. It is not to make more money because even the insurance company is out to make profit. They are just to restore one back to the former position before a loss not to give you a better option than you were before now. People need to understand this.

Wisdom01 said:

It would surely be stated in their terms , condition, policies and strict punishment would be given incase if any of the terms is breached , atleast it would make them take caution when trying to make false claims and others to ,so they are enlightened more on that I think , to prevent fraud from happening

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The funny thing is that with all the terms and conditions people don't care because they still try to make the system by bringing to the insurers false claims and sometimes over exaggerating the claims. It is good there's a punishment in place so that defaulters will not go Scot free for trying to game a system

It is always delightful to want to have your asset's insured. But you should also take out time to know the basic about the insurance company so that you don't overrate them to your detriment.

Insurance company is a profit making business. So don't expect charity from them. They are only to cover for your risk when it happens

They do not give you more money in any event of loss. You would only be restored to your old position. Don't insure an old car and expect a new car when the old one is damaged or get lost.

You wouldn't be compensated if you were not faithful with your premium payment. So your payment should be up to date when making claims

They would always find out all claims before making payments, so you can't cheat the system.

What are the other facts you know

Augusta said:

Well, you can't blame them for their decision going by the precedence of humans that don't mind milking the system when once they have the opportunity. So strict rules must be applied to steer people away from trying to be dubious. I hope people understand that they will be punished for making false claims and only provide the right. Evidence

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It would surely be stated in their terms , condition, policies and strict punishment would be given incase if any of the terms is breached , atleast it would make them take caution when trying to make false claims and others to ,so they are enlightened more on that I think , to prevent fraud from happening

Wisdom01 said:

Also if the person involved try to make fake claims and use any form of tricks , they could jail the person for such , and that's the reason they are always careful when dealing with clients , there are actually there for business and not a charitable organization as it is been said I think

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Well, you can't blame them for their decision going by the precedence of humans that don't mind milking the system when once they have the opportunity. So strict rules must be applied to steer people away from trying to be dubious. I hope people understand that they will be punished for making false claims and only provide the right. Evidence

Augusta said:

Since it is a.bueiness venture that is about profit making they are always careful to avoid losses. So whenever there's a claim they will always want to see that it is the correct claims that needs compensation if not there will be no funds for such. So yeah they only pay for legit claims

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Also if the person involved try to make fake claims and use any form of tricks , they could jail the person for such , and that's the reason they are always careful when dealing with clients , there are actually there for business and not a charitable organization as it is been said I think

Wisdom01 said:

Thanks for throwing more enlightenment , insurance company is also a profit making schemes , that's why they have experienced personell to check and verify your claims before thinking of paying you premium at the end of the day , because they just actually been careful and don't want to make loss covering wrong claims

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Since it is a.bueiness venture that is about profit making they are always careful to avoid losses. So whenever there's a claim they will always want to see that it is the correct claims that needs compensation if not there will be no funds for such. So yeah they only pay for legit claims

Thanks for throwing more enlightenment , insurance company is also a profit making schemes , that's why they have experienced personell to check and verify your claims before thinking of paying you premium at the end of the day , because they just actually been careful and don't want to make loss covering wrong claims

btaliat said:

You have just said the bitter truth. Most people think that insurance will compensate any event that one insure under then. But the fact is that insurance will take their time to investigate the fuse of the incident. There may not be any compensation if there is no prove that the event happens accidentally

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This is one thing the insured need to realize. The insurance company is looking to make money and as such they will always want to investigate to the very last to be sure this incident happened naturally. Funny enough if you deliberately make this happen you wouldn't get any compensation from them and that's the truth.