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Insurance – do you need it?

Insurance – do you need it?

You think an accident will never happen to you? Insurance – do you need it?

That’s the way I used to think until I was convinced to insure myself and my family. It does cost to insure yourself against everything – house, car, travel, permanent disability and income protection but I’ll give you some scenarios why I think it’s worthwhile.

I intend making this part of a series of insurance articles because of it’s importance. This article supports the use of personal insurance but does not include how much to insure yourself or your family for.  This will follow in the next article in the series. I’m also researching good sites to obtain competitive quotes from and will include links to them in next weeks article.

MH370

The most recent tragic accident that everyone knows about is the tragic loss Malaysian Airlines flight MH370. Even though the plane has not been found it has just been announced that Malaysian Airlines insurer’s including German Allianz, are about to payout $50,000 per passenger. This is one third of the entire possible payout but this will not be finalised until the plane is confirmed lost. With no confirmed sightings of wreckage this could be much later. Even if the passengers had no travel or life insurance they are still covered as it is mandatory for all airlines to have insurance. However, sometimes it can be a long time before any payouts occur.

Shot down in dogfight?

An extreme version of the MH370 disaster is the accident in 1980 of Aerolinee Itavia Flight 870. All 80 people on board this flight died in one of the most investigated accidents in aviation history. To this day there is still conjecture about what actually happened. There are two theories over the accident – one is an accidental rocket attack from Nato fighters in a dogfight with Libyan military aircraft, and the other, a bomb planted under the hand basin of the rear toilet that was detonated from within the plane. Arguments over the fate of the plane produced three separate inquiries and it took until 2013 for the grieving families to be paid out $100 million. Imagine if a husband or wife left family behind before boarding the flight on a business trip. 33 years later the children would be adults before compensation was paid by the Italian Government or it’s insurers. Obviously, it doesn’t sound like a good idea to have any accident in Italy – you could be waiting a long time for any resolution!

The tri – athlete.

Kerryn Harvey was a very fit Australian female who loved riding, swimming and running. She decided to take part in a support bike ride in the Tour Down Under in January 2013 and unfortunately fell off her bike and grazed her elbow. Doctors stitched up the elbow but it was so painful she returned to hospital for X-rays which showed no bone fractures or dislocations. Eventually, it was discovered that Kerryn had picked up a rare super bug infection and she had her right arm and shoulder amputated.

I know all of the scenarios above are extreme examples but they still affect the people involved profoundly. If the people involved in the above accidents (or for that matter the thousands affected worldwide by motor vehicle accidents yearly) had Health, Permanent Disability and Income Protection insurance, their outcomes would be completely different. It would include payments both for the person involved in the accident and for their family.

Keep safe!

 

Related posts see below

Insurance – do you need it? Part 3

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