Why people seem to treat their insurance policies like a piggy bank is a mystery to the Insurance Blogger.
The whole idea of insurance is to protect against the risk of something happening – like a fire, flood, theft or car crash.
The transaction is fairly straightforward – the person buying cover pays in and if anything untoward happens that is covered by the policy, the insurer pays out.
Take the luck of Irishman Gerry McDonagh – he was spending sometime at the Irish equivalent of Her Majesty’s pleasure when his car was stolen, by his son, and burned out by an unknown third party.
Because our Gerry was behind bars, the car was not reported stolen, so the insurer Axa, declined a €24,000 pay out.
Gerry decided to protest outside the insurer’s office on hunger strike – but he obviously got peckish and popped home after a couple of days and hasn’t returned.
His son can’t be quizzed over what happened – he went in the family’s revolving prison door as dad stepped out for an unrelated assault offence.
Add to this the confession by 780,000 people that they have defrauded their insurance by making a false claim that has never been detected.
Their idea of insurance is a saving plan that pays out when you need a few bob when times are bad.
The Insurance Blogger is more reluctant to sell his soul and figures working a bit harder to earn some extra cash is a better long-term solution to debt problems.
In the end, defrauding insurers comes down to opportunity. If someone believes they are going to get away with some easy money, then the temptation is to ignore the risks and take what you can.
That’s probably why insurers deal with 1,500 unprovable whiplash claims every day that have add £90 a year to everyone’s insurance premiums.
Who says crime doesn’t pay – it seems like the Insurance Blogger is handing over a fair amount of cash for everyone else’s bad deeds.