Page 5 - IC23 life insurance application

P. 5

In the Directive Principles of State Policy, the Constitution of India makes certain

mission statements. In article 41, it states that the state, within the limits of its

economic capacity and development, shall make effective provision for securing the

right to work, to education and to provide public assistance in case of

unemployment, old age, sickness and disablement and in other cases of undeserved

want. What it has been able to do, is for anybody to see. There are certain insurance

schemes floated for the socially disadvantaged, the details of which we shall

discuss, when we proceed.

The declaration of Human Rights by United Nations similarly declares from the

house top that every one has a right to a standard of living adequate for health, well-

being of himself and his family including food, clothing, housing, medical care and

necessary social services and the right to security in the event of unemployment,

sickness, disability, widowhood and other loss of livelihood in circumstances beyond

his control. If wishes were horses, beggars would ride. Even in highly developed

countries like Britain and United States where some medium of social security is

available, insurance, both life and general is a thriving business.

Insurance is based upon the universal axiom, “God helps him, who helps himself”.

There are only three sources of income when calamity has befallen - savings, charity

and insurance. Savings needs time to accumulate. Normally in case of human

beings, 90% of the income comes from investment of time and 10% of the income

comes from savings. As one grows old, the ratio is reversed and 90% of his income

comes from his savings and 10% from investment of his time. That is the ideal

situation. But who can guarantee him the time - time to save adequately so as to

reverse this ratio. The second alternative - charity is too demeaning to be even

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