Page 24 - The Insurance Times September 2024

Curing

Insurance

Phobia

Vazir Ahmed Khan
B.Com, LLM, BJ, AFII, Advocate
Hyderabad

In my last article, "Insurance Phobia" published in the "Insurance Times", I enumerated various
aspects of why people are afraid of insuring as they feel that insurance is not a transaction worth
spending money on for reimbursement of unfortunate loss. They say that they go on insuring but
no claims are made.

I n my last article, "Insurance Phobia" published in the signed by the insured, contains various questions that form
"Insurance Times", I enumerated various aspects of
the basis of the contract on which rating is done. But, un-
fortunately, this is often taken lightly by the signatory, and
why people are afraid of insuring as they feel that
insurance is not a transaction worth spending money
a love letter. This creates a problem. For instance, a health
on for reimbursement of unfortunate loss. They say that they the agent himself fills up the proposal and signs as simply as
go on insuring but no claims are made. Some say that the insurance claim was rejected as the insured was suffering
loss suffered by them is not reimbursed to their satisfaction. from hypertension in the past, and this fact was revealed
But there is no limit to satisfaction. by his old mother to the doctor. The doctor recorded it in
his report, and the insurer rejected the claim as a lack of
Truly enough, the insurance people are at fault for failing good faith.
to educate people, which leads them to say, "Insurance is
to help make profits." But the aspiring agent for commis- Such things could be avoided in the initial stages of insur-
sion says that "All losses will be paid." This creates confu- ance when the agent is cautious and books the business with
sion if the party is told from the beginning that insurance is open eyes. Every agent or underwriter should go to the
not for making profits but for the reimbursement of loss as insured with open eyes while talking to the insured. In a big
per the terms and conditions of the policy. The insurer must rayon factory, when I went to underwrite a workman's com-
be told to go through the policy in the beginning itself, so pensation insurance proposal, the general manager took
the insurance always mentions on the docket of the policy me around the factory.
to advise to go through the policy in the beginning itself.
I noticed the operation of the woodcutter, crushing the
So the insurance always mentions on the docket of the wooden logs into chips, where a man stood at a height of
policy to advise going through the policy at the beginning. about 30 feet, pushing the wooden logs into the crusher
The proposal form, which is supposed to be filled in and with his legs while holding an iron pole with one hand. If he

22 September 2024 The Insurance Times