Insurance: Hunter of Greedy

18th Century, Scotland, the most pessimistic country in the world, king is deeply hurt seeing the plight of the widows of the priests of the church. He decides to help the widows and discusses with the economists. A new invention called “welfare state” comes in to existence. Idea is to collect the money from the public for some period and promise to return the received money at the end of the tenure. Money is invested in the trades and businesses and the money earned is distributed among the widows. And those who were paying the money acquire a special status in the society as being responsible for the welfare of the society, hence, both are benefitted the widows and the payers.



Second decade of 20th century, Japan, turned in to a similar welfare state. Idea is to help the unemployed, jobs in army is provided to all these unemployed and are helped by the money of the public. Life style is improved and people are becoming richer and richer, govt. earning healthy amount from the premiums accumulated. Now idea is to expand the boundaries, USA is the enemy, soldiers are killed, and money is finished.



After second world war, Japan, people are scared of sudden economic collapses, idea is to ensure you for your life(not from death but from life) and property, pension plans, social structure is improved people are living healthy and peaceful life, all businesses are growing, money earned from the premiums is gone in the infrastructure and big players of the stock markets are playing with the money with the hedged funds, but health is improved drastically, they are living by the age of 100, how to give them the pensions up till this age as thge ratio of working people with the pensioners has reached to the very serious level.



Currently, Japan, All insurance companies are on the verge of bankruptcy.



Recently, USA, many tornados like Katrina have destroyed many parts of the country, insurance companies refused to settle the claims (providing the policy documents and showing many hidden clauses which state that tornados were not in list, signed by the insured one’s), government is with the insurance companies. Money is lost paying the debts of 115 countries),Residential of New Orleans can not live in their city because their property can not be insured in that city because it is so prone to tornados, AIG declared bankruptcy but is provided the handsome bail-out package(can somebody tell me please what does “bail-out package means”) by the Govt. of USA, later people come to know 25 other companies could lead to bankruptcy in case of their debts with AIG go bad. Well, AIG was not running in loss due to the claim settlements (they didn’t settle any), but because they have sold the derivatives in the stock market.



Yesterday, Vijaynagar, India, never witnessed flood in the history, flooded badly claiming many lives and property. People mustn’t have seen the policy documents (I guess in this city they have forgotten to add “flood” in the clause), hence the claims of flood victims will not be settled, now I want to see the faces of the authorities managing the dam associated. Is there some thing wrong?



Do we want to follow or need to follow USA or Japan................. I guess...........No we don't)...............Stay Away from the insurance companies.



Insurance is like the excretory system os the whole financial system from where the fiat money is excreted



Who is the director of IRDA?.............well good question, I do not know the answer.



Well, I can smell something wrong, if you can’t, read the topic again.