Friday 22 January 2010

Insurance by mistake

Now it is an irony of our times that on one hand there are people who are not able to find affordable health insurance schemes to protect against future tragedies, catastrophic ailments or events. and on the other hand, there are close to 5 million people in the world who have been sold an insurance policy, of which they know nothing about, and are yet paying toward the servicing that policy in the form of premiums and renewal amount. yes, this is true. many people were sold Payment Protection Insurance(PPI) schemes 'by mistake' when they applied for various loans like home loans, loan against car, education loans, etc. what is worse is that they don't know of it and in the event they fail to make a payment against any of their loans or credit service availed, they wont make a claim for the same under this policy because they aren't aware of it!.

on an average one thousand eight hundred dollars are paid by or to individuals but the pay-outs would have been much higher had the individuals been aware of the same. The Payment Protection Insurance is taken by individuals for servicing of a loan in the event they fail to make a payment but there was as such no clause that one gets subscription to it by default when he or she applies for any loan!! but the fact is they are and it would have been much better if they at least had knowledge of it.

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