Buy Insurance and Act Like You Don't Have One
WELCOME TO A NEW WEEK AND TO A NEW SERIES!
Covid-19 is very real. Many of us have gone about business as usual saying, we do not know anyone who has contracted the deadly virus. My dear friend, you do not need to know someone before you protect yourself. Kindly follow the protocols now more than ever. Today, I introduce you to "Buy Insurance and Act Like you don't have one."
Insurance can be viewed as a contract between two parties, that is, the insurer or insurance company (first party) and the insured or policyholder (second party), whereby the insured pays a relatively small amount of money (premium) into a pool of fund held by the insurer and as a result, the insurer promises to pay the insured or the beneficiary or beneficiaries of the insured a relatively huge amount of money on the happening of an unfortunate insured event such as accidental fire outbreak, accidental damage to property, theft, injury, disability, sickness and death.
One of the cardinal principles of insurance is that insureds, after buying insurance, are expected to act as if they do not have insurance. In other words, insureds are not supposed to deliberately behave in a way that increases the likelihood of the happening of, or bring about, the unfortunate insured event. It is therefore essential for insureds to take care of themselves and their insured properties or control their environment or situations as if they do not have insurance in order to prevent the happening of the unfortunate insured event. In insurance, this condition is what is generally known as moral hazard. For example, a Motor Insurance policyholder is required to take all reasonable preventive measures to protect their vehicle from being damaged or being involved in an accident or being stolen. This would be achieved by ensuring compliance with all legal, driving, safety, maintenance, and operational requirements for the use of the motor vehicle.
In the coming weeks, I urge you to stay glued to my page for deeper insight on this topic.
6
Emmanuel Jonah, Emmanuel Forson and 4 others
1 Share