# Insurance - the big black hole



## rainyday (1 Nov 2002)

I'm amazed at the common view that Insurance is a big black hole of infinite resources that can be used to pay for anything. This view is often used to justify shoplifting (ah sure they expect a certain amount of it), fraudulent claims (ah sure the insurance company will pay out), and as of today, fire brigade call out fees for Dublin City Council.

This article refers to John Fitzgerald (City Manager) as follows;



> He said most of the businesses would be able to reclaim the charge from their insurance cover.



The insurance companies aren't going to make a 'charitable donation' to Dublin City Council. I would expect that insurance companies would simply increase their premiums to cover this new callout fee. Therefore, the costs will simply be spread across all businesses. 

I'm just amazed that a senior public official would support the 'black hole' theory by such an ill-considered comment.

Regards - RainyDay (no connection with the insurance industry)


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## ClubMan (1 Nov 2002)

Like in _The Sopranos_ last night when _Christopher_ struggled to explain to _Tony_ the unauthorised stealing (well, you know what I mean    ) of some fibre optic cable from one of the mob's building sites and eventually excused it by saying _"Sure, don't they *have* insurance over there?!"_ :lol   Enough already!


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## rainyday (1 Nov 2002)

I'm shocked, Clubman - You're not comparing John Fitzgerald with Christopher Moltisanti  now, are you? :rollin


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## ClubMan (1 Nov 2002)

. :lol


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## N0elC (1 Nov 2002)

One thing I find grating about being a mortgage holder in Ireland though is the legal obligation to purchase life insurance. I find this very intrusive.

For single people, with no dependents, the only ones to benefit from this are the relatives squabbling over the deceased's estate. Why should the State be interfering like this? 

Insurance companies in Ireland seem to be quick to latch onto this as well, and, from personal experience, charge far more for life insurance here than they do in the UK. 

I see from an article in the Sunday Tribune last week that GE Capital are arriving into Ireland to shake up our cozy mortgage cartel. lets hope they do something about life insurance too.

As for insurance fraud, life assurance is unlikely to be such a likely target. However, I do remember one particularly good episode of Steptoe and Son where they tried to do just that !!

Harold !!!!!!!!!!!!!!


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## Tommy (3 Nov 2002)

Life assurance is essential for any mortgage holder - if only to ensure that their next of kin won't be left with crippling mortgage repayments in the event of the mortgage holder's unexpected demise.

Before the compulsory life assurance was introduced as a pre-requisite for owner-occupier mortgages, I am aware of a number of families being left in dreadful financial difficulties when the main breadwinner died without life assurance, leaving them unable to meet repayments and their family homes literally at the mercy of the banks

Tommy
www.mcgibney.com


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## N0elC (3 Nov 2002)

Hi Tommy,

Shouldn't this be up to the discretion of the individual though, rather than having it imposed on them by the state ? 

I feel this to be yet another example of the "nanny state" that we appear to have in this country.

For people with dependents there is a moral imperative on the mortgage holder to take out appropriate insurance, for those without, there is not. It certainly  should not be the role of the State to make this decision for people.


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## Tommy (3 Nov 2002)

I thought that it would be essential business practice for the lender. It seems unnecessary to me that the State should have a law insisting on it. Maybe the policy is a legacy of the mess that many people ended up in, in often tragic circumstances, a decade or two ago, before this rule was introduced. 

Remember also that you don't have to have dependents to leave a financial mess after you. If you die without dependents but with negative equity in your home, or a mortgaged property that turns out to be slow or difficult to sell, somebody has to pick up the tab.


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## Wings Of Chicken 1 (4 Nov 2002)

*Fire Brigades & Insurance*

To return to the original topic.......

Fire Brigades were originally started by Insurance Companies, prior to them being a social/government matter. 

When you effected a Fire insurance, you received a cast-iron Firemark (see [broken link removed] for examples)
with your policy. This was hung on the front wall of the property so that the 'XYZ' Insurance company Fire Brigade could identify that the property was covered by their company.

The costs of running the Fire Brigades fell to each Insurer.

How the wheel turns full circle.

Wings


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