Disadvantages of insurance

Mandy96

Valued Contributor
Insurance is good because it is like an assurance of getting compensated for losing in any risk you take.
Well, there are disadvantages of insurance
Thy are as follow;
1. It does not cover every loss
2. It delays to provide financial reimbursement
3. It recompense as decreasing as possible to increase profit.

1. It does not cover every loss:-yes, it doesn’t cover all loss because there are some certain level insurance policy can not cover because the insurance company also care about making profit.

2. It delays to provide financial reimbursement:- this is one of the problems I personally don’t subscribe to the idea of insuring because at the end they will make it complicated for you when it is time for them to be there for you.

3. It recompense as decreasing as possible to increase profit:- like I said earlier, insurance companies too care about profit because that is why it’s called business. Insurance company is not a charity home where you think you can get favors without paying for it.
 

Good luck

Valued Contributor
Yes i quite agree with you with all the disadvantages of insurance policy or company you mentioned above ,most especially the insurance policy that doesn't cover all. I believe since it is an insurance plan it should be made to cover every expenses no matter how the cost or damaged.but the reverse is the case in some or all insurance company around.
 
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Mataracy

VIP Contributor
You are correct with the analysis you made. But at the same time we should also know that insurance company is somebody's business and the main motive or primary aim is to make profit.
And concerning covering of risk. Insurance will not cover any risk that is liable to risk or that is highly risky.
 
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btaliat

VIP Contributor
There is nothing that has advantages that do not have disadvantages. The poster is right with some of the disadvantages of insurance companies. Also, it is not certain that the risk that one insured against will automatically happen. This means insured person may not even be compensated if there is no loss at all.
 
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Sethbala11

VIP Contributor
I think that the disadvantages of insurance is actually not a disadvantage but instead just some minor setbacks. It is too that you might not expect the insurance company to buy you a new car whenever you lose your old one but that is also included in the terms and conditions when you were signing up.
 
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kayode10

VIP Contributor
One of the disadvantages of general insurance is that if you default at your premium it might be very hard for you to claim your insurance when an unforeseen circumstances occur. Sometimes you may find it difficult to pay for the premium. You can have problem when another company acquired the company you are using.
 
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Wisdom01

VIP Contributor
I think one disadvantage of insurance that doesn't works for every insurance company is the compensation period ,most insurance company would compensate you almost immediately your vehicle or the thing you are insuring against got spoilt ,there would be maximum coverage for it Instantly I think , it depends on the company
 
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Chibson

VIP Contributor
The truth is that everything have advantage also have disadvantages. Not every kind of damage will be paid by an insurance company after you might have purchased a very big premium. Some of the insurance companies are not responsible for every loss depending on your agreement with that insurance company.
 
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