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Legal Needs
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| Nov 26, 2008 8:44 am |
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re: Insurance Law |
| RVIyengar
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Re: "Are not the insurance companies cheating, however lawful the fine print may be?"
Strictly speaking, 'No'. When one opts for an insurance policy one is paying (premium) to insure one's life, health or possession against unforeseen events like death, illness, accidents, damage, etc. The payment is for the act of insuring.
Premiums are usually not refundable, irrespective of whether the insurance is availed or not. Premiums are in a way akin to a one-way street.
In fact, collecting premiums from many more helps the insurance companies pay the insurance amount to the few unfortunate ones - in whose case the insured event takes place.
Many travel insurance policies do not recognise cancellation of trips, as with the ticket the policy was ‘bought’ and one cannot go back on that.
However, some companies do, and the amount is often refunded once a claim for refund is made before the policy’s effective date.
As you have mentioned, it's all in the fine print.
Private Reply to RVIyengar (new win) |
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