Is insurance a lotto-like experience?
THE EDITOR, Sir:
It is a fact that during every policy year someone suffers a loss and is compensated by the insurance companies, provided that they pay their premiums. It is also a fact that some persons will suffer loss and, though they paid premiums, would not receive any compensation.
This proves the point that, "if you don't have a ticket, you don't stand a chance", the ticket being the insurance policy. Out of the thousands of persons who have motor insurance policies, a few will have claims and only the minority will be partially indemnified.
More and more policyholders who benefit and hope to benefit tell others about their hopes and confidence of benefiting from the companies at some point in time, in effect recruiting new customers. This ensures that the wheel of insurance companies is kept spinning. If potential new customers don't join, then the companies will crash. Sounds familiar?
With this knowledge, consumers can demand better service from insurance companies or slowly pull the rug from under their fragile feet.