Is risk causation a legalised rip-off by insurance companies

Abstract

Abstract provided by author

The Namibian economy has changed tremendously over the past few years. The new democracy saw a new generation of property owners, increased vehicle sales and strong spending by the new middle class. The potential for building the insurance brand and explaining its relevance in a fast changing society emphasized the importance of insurance

We live in a society, which compels us as to take out insurance policies, meaning the insurance industry is an essential service, but this industry is not always perceived as positively as it should be, by consumers in general. Insurance, be it short or long-term, is a "grudge-purchase" and the companies within the industry are often perceived as profit driven, non-sympathetic institutions

Nevertheless, the insurance companies states quite the opposite, because according to them they offer a buffer in bad times, protection when accident strikes and even stand in for a person or business, when risk is evident. So, how will these two views be interlinked to the greater good of both parties? I will do this by discussing the risk regarding the insurance contract and what obligations the insured needs to comply with and the fact that the loss must have occurred in the manner insured against

I hope that this document will be useful to those coming into the area of insurance and that it will in a small way assist in bringing about a better relationship than that which now exists between an insurer and the insured, and to make insurance what it was always intended to be, namely a contract of the utmost good faith.