Insurance at Home

Many couples are employed. Did we think over how their homely environment would be, particularly when wife and husband are working in the same office or in the same profession? The chat between them or with the visitors or on phone is overheard by their children. Think over what would be the impact on the life and style of children, when they talk to other.

In a Doctor’s family all the medical terms are used by the parents personally or on phone and children become used to it. To set right the mistake, the son may say “Antibiotic is sufficient”. Anything bad maybe termed as “Virus” to say somebody is angry, it may be said : “His blood pressure is high.” If somebody is shocked, it may be said he got a “Stroke”. If he is given a heavy dose he will become alright or an ‘injection’ will make him alright.

In a lawyer’s family the tone and tenor would be different. To call a person it may be said, “Summon him”. To allow somebody to go, it may be said “Bail is allowed”. To dispose of somebody, the term is used: “Hang him,” which is otherwise used by them to put the criminal on the gallows.

In a family where both wife and husband are police officers, the effect of talk would be different. To ask a man to go away, it maybe said “Kick him out.”To punish somebody, it may be said. Put him in the lock up.”Much abusive language spoken by the parents as is done to the criminals, with threats maybe used, which is not desirable to express here, but children too become used to it.

In a political leader’s family a funny behaviour prevails and dialogues would be emanating. The dialogues before or at the time of election would be mild, polite, requesting for votes with assurance to do good. But when elected or after election, the tone and tenor would be commanding, rejecting, unrecognizing with evasive promises like “I will try”, “Your work could not be done because you have wrongly put up the case,” or “your work involves lot of expenditure,” (i.e. tips from top to bottom including his margin). Children too learn to become hard and soft according to the situation.

LAST BUT NOT THE LEAST –

Let us pick up one such case where the couple is working in an insurance office, either under one roof or distant offices – assume the husband is the manager and the wife is the claims settlement officer. Their discussions on phone with the clients at home where small and grown up children overhear their haughty dialogues. Children surprise at the language and the jargon of words that are used not only create a boredom in them by overhearing such terminology, but they get accustomed and feel convenient to use such words, while the other person does not understand.

Assuming, their son, Ramesh along with his sister Prithi went out to purchase some stationery, let us watch the style of their conversation. For asking the price of certain item, he asked: “What’s the rate?” The shop keeper did not understand. Prithi explained: Rate means Price. When the transaction was finalized, he again asked, “How much is the commission?” To this Prithi had to elaborate : ‘Commission’ means Discount that is given from the price as a concession.

On a quarrel between Ramesh and another boy who tore the book of Ramesh. He said, “I will lodge a claim” before your father instead of saying “complaint.” He said it is “negligence” while Prithi said: No it is “accident”. Whatever it is Ramesh wanted to ‘entrust’ the matter to the ‘Surveyor’ to determine the loss. On receipt of survey report, I will pay the loss.” But Ramesh said in this matter there is contributory negligence.

Then he asked what ‘contributory negligence’ is Prithi said, in the event when both the parties are negligent, it means there is contributory negligence and the loss would be borne equally. However, when “malafides” is proved, the losses become heavy. The boy asked: what does ‘malafides’ean? “It means,” she continued, “bad motive or mischief to put to somebody to loss. But if your act is of utmost good faith, then there is some other course.” “Again,” she had to explain “Good Faith means “frankness.” Prithi said, do not get surprised, my mummy and dad always chat in this way.

In an accident between two motor cycles, Ramesh, like his father entered in the arena. In a discussion he asked, “Do you have insurable interest? If you do not have you will not be paid the claim. The motorcyclist was funk, while Prithi explained. “No, no what it means is : Are you the owner of motor cycle? If you are the owner of motor cycle, then the insurance company will come forward to pay not only the loss to your motorbike, but also damage to Third party.

“Third party” means anybody involved in the accident not being the insurance company or the owner of the motorbike is a third party, provided that there is “proximate cause.” Again she explained that the cause of loss should be the nearest and not remote. It means that the cause which the nearest and not excluded or not insured.

However, Ramesh continued, if somebody else is responsible for the accident the “right of subrogation” arises. Prithi explained: Subrogation is the right by which the insurance company takes over the rights of the owner of vehicle to recover the loss from the third parties or those responsible for the loss.

The owner of the motorbike said I am not concerned about the third party claim : I am concerned about my loss. Ramesh said, whether you are bothered or not a third party loss would be on your head if the claim goes to the MACT. He questioned “What is this MACT?” She explained: “Motor Accident Claims Tribunal!” It is a court for quick disposal of Accident cases. The loss to your motor-bike would be on the basis of indemnity. The owner was surprised to hear “Indemnity”.

Ramesh explained, that the actual relevant loss. The owner of a vehicle is not allowed to make profit out of insurance. An old vehicle will not be made new after the accident. Related damages are repaired, replacements attract depreciation. Then the salvage has to be returned. Again you are telling words not understandable to me.

“Salvage” means once the claim is paid the damaged parts (Scrap) have to be returned to the insurance company. The owner said “This is my vehicle, why should this be returned?” Ramesh explained: According to the principle of indemnity the owner should not make profit out of insurance, so once a claim is settled all the damaged parts should be returned to the insurance company.

Thus Ramesh could coin all insurance terminologies overheard by him from the talk of his parents day in and day out and the listeners are led to confusion.

But every-body is supposed to know these terms. This will guide him, as everybody has to face the risk. He must understand some basic terminology as Ramesh did.

By: Mr. Vazir Ahmed Khan, Formerly Sr.Divisional Manager, United India Insc. Co. Ltd., Hyderabad, Published in The Insurance Times, February, 2012