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Nov 06

Insurance and their Flaws

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Insurance companies are designed as financial wind-fall options whenever we are faced with financial crises. Almost everyone has insurance. Even lawyers have them. But even with their benefits of financial rewards and compensation, insurance policies are flawed because of a company’s ability to play with words and context. Simply put, one company can easily manipulate their way out of financial obligation if they worded their policy contracts right. Thankfully, this is impossible because the contracts have to be notarized or checked by a lawyer. This makes it difficult for insurance companies to get out of financial obligations.

5 years ago, I was handling a claims case wherein a drunk driver rammed into my client at full speed and she suffered major injuries to her spine. She was left paralysed. Her insurance company did not honour their obligation because of some loophole in the contract. The drunk driver’s insurance company honoured their end of the bargain, but her insurance was important because it was what she needed to pay for treatment. After going through the contract, I found out that the contract was constructed illegally and that it had too many exits. We won the case but it was very lengthy.

Before you sign any insurance policies, be sure to have them checked out by your lawyers.

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