Article: Criticism Of Insurance
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Criticism Of Insurance
Insurance policies work by taking premiums from customers in exchange for baring the risk of certain costly events occurring. For example, if there is one fire in your town each month, everyone could just sit tight and hope their house doesn?t burn down next, or everyone could pitch in and pay an insurance premium each month and this is then used to rebuild the house that burns down. Very simply this is how insurance works. It is a method of spreading a risk over a far wider area, so that it will not be as devastating as if it was concentrated solely on the person who experiences the loss.
Exclusion Clauses
There are a few problems with this however and they attract much criticism. One criticism is that by taking on the risk for people, insurance makes people...
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