Spreading the cost of car insurance can push up premiums
Posted on August 18th, 2010
Some drivers who pay their car insurance by direct debit could end up paying more than they bargained for because not all car insurance providers are clear about the costs of paying monthly. Car insurance providers should clarify the cost of paying by direct debit, according to financial research company Defaqto, which has released a report addressing the challenges currently facing the car insurance sector. Monthly instalments offers motorists a way of budgeting for their car insurance more easily, instead of having to pay the entire premium in one go; some insurers do not charge extra for this, but others do, with an average added cost of between eight and 11 per cent on top of the original premium. Read more…
BP to fund mental health in oil-hit Gulf states
Posted on August 16th, 2010
BP announced Monday 52 million dollars in funding for health groups dealing with stress and depression in four southern US states hit by the Gulf of Mexico oil spill disaster.
“We appreciate that there is a great deal of stress and anxiety across the region,” said Lamar McKay, president of BP America. “We are providing this assistance now to help make sure individuals who need help know where to turn.” A statement from BP said the funding would help residents link up with health care providers in their communities through outreach programs, including a special toll free phone line people can call. “This funding is a start toward helping Floridians who are beginning to feel the stress associated with this disaster,” said Florida Department of Children and Families Secretary George Sheldon.
“We will assess future needs and make requests for necessary funding from BP as necessary.” The US government has compiled a tip sheet on the threat of anxiety for Gulf residents, pointing out symptoms such as frequent crying, being overwhelmed with worry and sadness, and increased alcohol and drug abuse. Ed LeGrand, executive Director of the Mississippi Department of Mental Health, noted many in the region — where the vital fishing, tourism and oil industries have been hit hard — find it difficult to reach out for help. “Many of the individuals affected do not typically take the initiative to seek mental health services,” he said.
“It is vital for us to take a proactive approach. This funding will invest in individuals’ mental health through early intervention which may impact long-term physical and mental health needs.” BP said 10 million dollars will go to the Substance Abuse and Mental Health Services Administration (SAMHSA), 15 million to Louisiana’s health department, 12 million each to Alabama and Mississippi’s mental health departments and a further three million to Florida’s children and families department.
An April 20 explosion killed 11 workers on the BP-leased Deepwater Horizon rig. It sank two days later rupturing the Macondo well, which over the next 87 days spewed oil into the Gulf of Mexico in the biggest maritime spill ever. BP eventually sealed the well with cement earlier this month, but not before untold damage was done to the vital industries that are the Gulf region’s lifeblood.
Life insurance policy smacks of fraud
Posted on August 15th, 2010
Dear Dr. Don, Why would any insurance company insure someone given only weeks to live?
My brother passed away three months ago. Now his widow and daughter are saying someone took out a life insurance policy on him 30 days before he died. His doctors had only given him five weeks to live. They say Social Security won’t pay his medical bills because of this policy. They also say the insurance company won’t tell his wife who the beneficiary is or was. The insurance company has supposedly already paid the claim.
International War and Terrorism Insurance
Posted on August 13th, 2010
Understanding the True Cost of Terrorism
While the political impact of war and terrorism is easy to identify because it’s so often in the news, it’s not quite so easy to identify the overall cost of acts of terrorism for companies and individuals. Before you can understand the costs, you have to understand what defines terrorism or an act of war. Is being kidnapped by Columbian rebels terrorism? What about a vehicle that you’re riding in being sabotaged by a civilian army as an act against a dictatorship government?
Prudential bounces back from failed takeover with 41 per cent profit boost
Posted on August 13th, 2010
Prudential has pleased its investors with a profitable result despite losing billions of pounds in June following the failed AIA takeover bid. Just two months ago the insurer lost £24 billion when its bid to takeover AIG’s Asian business fell through after shareholders failed to support the acquisition. But yesterday their fortunes were reversed when they announced profits of 968 million for the first half of 2010, a 41 per cent surge and higher than analysts’ predictions. The good news means that dividend payments for Prudential’s shareholders will rise by 5 per cent. Speak Read more…
Insurers hold death benefits for more profit
Posted on August 13th, 2010
Life insurers are facing broad criticism for profiting from the death benefits of soldiers and other life insurance policyholders even after a claim is supposed to be paid.
Insurers are using so-called “retained benefit accounts” to hold onto payments they owe to families of deceased policyholders. They deposit the funds in insurer-controlled accounts, rather than transferring the payment to a bank or issuing a check to beneficiaries. The practice allows the insurer to hold onto money and continue earning interest on funds they are otherwise required to pay out as claims.