“Somebody always pays for insurance.” It is an old insurance saying and I had occasion to say it to a client this morning.
Last week she was in an accident and the other party does not have insurance. Now they start harrassing her.
My advice was: Do not talk to them or negotiate with them, it can only put you at risk. Tell them you have insurance, give them my number and I will point them to the insurers.
My client has insurance, we will follow the procedure, her car will be repaired, no problem.
It is not “no problem” for the other party.
1. He will have to submit and substantiate a claim against my client/the insurance company;
2. If the insurance company decides that he is at fault (and already we know a lot of erroneous or false statements at the police), he will have to pay his own repair cost and will be liable for my client’s costs (paid by the insurance company).
I do not know why he did not have insurance. The fact is, anything he saved by not paying an insurance premium, is now at risk and then some more!
That is why we say: “Somebody always pays for insurance.”
Life insurance: Either you pay a premium while alive, or your family will pay after your death with a reduced standard of living and your dreams for your children may never be realised;
Income Protection: Either you pay while healthy and working, or you suffer the financial consequences of a debilitating event;
Medical Aid: Either you pay the premiums while healthy, or face financial ruin while fighting death. This is very relevant in my life. My wife has leukemia – if we did not have medical aid paying for the medication, we would be ruined financially and she would have a 3 year life expectancy. Now the medical aid pays the medicine and she has a normal life expectancy.
That is the downside of my work – I have to remind my clients of things that can go wrong. The satisfaction? When a claim is settled and a client carries on with his life, whatever happened, was just a bump in the road.