General insurance Is insurance company a scam?

[Mataracy]

Insurance company can be describe as a company who are in charge of helping people to insure their property or even life.

In this case whenever some body go to the company to pick up policy they will present a lot of policy that they have on ground in which the insured person will now pick one suitable for his/ her business or property.
Some will even go to the extent of taking up life insurance policy which no one can predict when one will even die.

After when one had picked the policy a premium will be given for the person to be paying be it every month or on a yearly basis.
If the incident refuse to occur then the insurance company will continue to enjoy some ones money without refunding.

Can we now say that ; insurance is a scam?
What can you say to it?

 

[Lens1000]

There is a point I would like to raise regarding the auto insurance. Every vehicle in Nigeria Roads must have auto insurance coverage. What baffled me is that In most cases this insurance companies don't cover for losses on the vehicle. I see this as a joint effort of the government and the insurance company to scam people.

 

[Nite]

Like every other business, insurance is also there to make profit. There are some companies who gouge their customers, they will do everything to invalidate the claim, or make it very hard to get the money. They limit the usage on their policies as much as possible. And If somehow your usage maximizes on their policies, then these companies may revoke the overall policy, and declare you as too much of a liability or in some cases even charge you.

 

[btaliat]

It depends on your view. I wouldn't be so quick to use the scenario you painted to call them a scam because of the incident happens in, insurance company will surely pay. Then it is not a scam. But just a gambling where you don't know whether you will be paid or not.

 

[Deleted member 28127]

Many people pretend that they have accident means the accident is planified by different people to get insurance for accident then this case insurance company will run out of funds due to repetitive fake cases, when it comes to a true case company will have lack of liquidity then they postpone paying money until having new funds then customer will think it is scam company as simple as that.

 

[sincerem]

It's been a while insurance came into limelight, if it's a scam scheme or profit, I believe the government could've banned it long ago. The fact is that, their are still scam insurance companies that's why we need to make our researches well before going into contract with any one that comes through us.

 

[Mandy96]

In some parts of the world, one could say that insurance is a scam well not directly but partially. Places like my country where they really care more about making money rather than having the interest of their various clients at hearts.. they hardly have customers so once they have an individual interested in their products, they see them as a victim

 

[Kennysplash]

Insurance is not a scam, life is not predictable. You never know what will happen the next minute. Take for example health insurance, we all fall sick. Hence it is not money wasted. Then auto insurance too, at least our autos develop faults every now and then. The truth is we need those insurance, to be sure things will be fixed when they go wrong.

 

[Augusta]

There is a point I would like to raise regarding the auto insurance. Every vehicle in Nigeria Roads must have auto insurance coverage. What baffled me is that In most cases this insurance companies don't cover for losses on the vehicle. I see this as a joint effort of the government and the insurance company to scam people.

The truth here is that a lot of things don't just function properly I'm Nigeria. I don't know if it is hardship it what because I don't just get it. People would just be springing up business just to scam people. Insurance might be a lot better in developed countries but can't be said for developing countries

 

[Good luck]

I don't think insurance company is a scam.Though we have some fake insurance company around trying to get people to join their system and after the person has paid premium for some years,they will just come up with another terms and conditions which will not go well with the person or just stop the initial agreement that has been laid down.

 

[Mataracy]

@Lens1000 , I don't think insurance company can join hand together with any government to commit that breach of contract at all.
What happen is that the insurance company will state the area that they will cover in auto policy and it will be an agreement between the two ,that is both the insured and the insurer before the premium payment will be dis-caused.

 

[Mika]

If the insurance company is registered with the concerned authorities, if the insurance company is licensed to sell insurance packages, it is definitely not a scam. But it is also true that some insurance companies scam individuals and businesses. I have seen many such cases where the insured businesses and individuals did not receive financial coverage.

 

[Dasryny]

You know what other interesting things I've read about insurance? I didn't even know there was a big difference, and it turns out there are different insurance representatives american-reia. That's why I try to read more about insurance. I'm afraid of getting scammed somewhere if I'm not prepared for it.