We use community features in our daily living. Be it simple helping one another or using resources from local markets.
How would it to go a step forward where in we have a global pool of multiple individual community insurance schemes. It would be an integrated pool of resources interconnected, interlinked with all the other community pools across the globe. A seamless integration and a way of helping any one in need.
Insurance for your home, office, crop, automobile, medical and your life. How would you feel if you had to just pay a single insurance amount which would last for multiple years. A scheme which would help you save a lot long term while covering you and your family for all the unexpected troubles you may face in future.
Why community insurance could be the way in future:
No commissions to pay to agents.
No costly offices, office expenses which need to be incurred.
Each community raises the fund, say a colony, office building, residential complex or individual automobile dealers.
Deposit the money in the bank converted to FDs. Get fixed returns per year.
Theoretically, if the outgo of amount is almost close to 10-20% a year out of the entire corpus after a couple of years of taking money one might even not need to pay any insurance amount!
Are you hyping the things?
Well not really. This is just an idea, a workable idea.
Why do you think it could result in no insurance amount outgo after after a few years of paying insurance?
Well, it would mean reduced insurance outgo in future. It won’t be zero but it could well be less or even close to half of what we pay combined. The theory is this. We explain by an example. Say a community has around 300 houses each having 4 members. The total amount of people would be 1200. Now say each member contributes say 1000 towards the insurance scheme which would mean an amount of 1200000. Now the yearly interest would be approximately 60000. Now say our total insurance payout for the year is 20% which would be 240000. Hence the net total outflow for the year would be 180000 (240000 – 60000). Hence for the next year we need just a contribution of 180000 from all its members (to make the total corpus at 1200000). Hence for the next year each individual would need to pay just 150. The contribution could vary year to year and some years if the total outgo is same as the inflow of interest income then the members would not have to pay a cent. How does that sound?
Do you think its a workable plan?
Well, that needs to be seen. Its just a concept, but feel its highly workable.
So do key in your comments on what you feel about this concept and how it could be taken forward!