Interesting Facts About Insurance: Hedging Against Risk Of Financial Losses

One of the consequences of the Great Fire of London that destroyed much of the city 350 years ago today, was that it led to the birth of fire insurance and house insurance in general.
Today sports personalities and stars of the silver screen regularly use insurance to make a media splash, from rock legend Gene Simmons insuring his tongue for $1million to Dolly Parton insuring her breasts for $300,000 each. The trend isn’t restricted to real life celebrities; Britain’s favorite fox Basil Brush had his tail insured for £1million.
Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party.
Let’s now look at some interesting facts about Insurance:
1. The most expensive insurance policy in the world belongs to the American director Steven Spielberg, his life was insured for $ 1.2 billion.
2. Russian athletes in Nagano and the participants of the World Youth Olympic Games were insured by both domestic and foreign insurance companies.
3. The fastest, according to Guinness Book of Records, the famous Irish dancer’s legs, of Michael Flatley, were insured for 25 million dollars.
4. The first customer who opened the fashion of “exotic” insurance, became silent movie actor Ben Turpin. Back in the early 20s of last century, he insured his eyes for $ 20 thousand.
5. The world’s largest cigar weighing 110 kilograms and with a length of almost 4 meters was insured during exposure on one of the exhibitions in London for 18,000 pounds sterling, and the premium was only 50 pence. Perhaps because, as claimed by the owner of a cigar, it can only be smoked in no less than 339 days.
6. 62% of bankruptcies in the USA are due to medical bills. Almost 4/5th of these people had health insurance but went bankrupted anyway because of co-payments, deductibles and uncovered services. Others got so sick that they lost their job and then lost their insurance.
7. Japanese life insurance will pay, even if you commit suicide. Therefore motivating people to kill themselves, so their family can live in comfort. One of many reasons for the high suicide rate in Japan.
8. The Turkish government attempted to recover life insurance for the Armenians it killed during the Armenian Genocide with the argument that there are no identifiable heirs.
9. Organizations such as the Boy Scouts can purchase special sexual molestation insurance policies since molestation lawsuits are not covered by organizational liability insurance.
10. Hawaii has required employers to pay health insurance benefits to employees who work 20 hours or more per week since 1975.
11. No insurance company will underwrite Jackie Chan’s productions. Therefore he personally trains his own stuntmen and pays their medical bills out of his own pocket.
12. Netherlands is the only country in the world where it is compulsory for everyone to have private health insurance. Premiums are not based on age or health status, but on income and are on average €100 per month.
13. Even though SONY is known around the world for mostly selling electronics, its insurance division is the major source of profit for the company while the electronics divisions is losing money.
14. People in the U.S. without insurance will sometimes buy antibiotics for fish as they are the same grade and dosage as human antibiotics but do not require a prescription
15. In Japan, avid golfers buy insurance to protect themselves on the course. They purchase it because if they get a hole-in-one, they have to buy gifts and drinks for their friends. The policy covers them for a party worth up to $3,000, for the low price of $65 a year.
16. The Apollo Astronauts, unable to qualify for life insurance and not insured by NASA, resorted to ‘insurance autographs’, signing just before launch in the expectation that the value would skyrocket in the event of their deaths.
17. In 2012, a Texas Hospital billed a woman $4800 after she was in an accident. Once the hospital found out she received an insurance settlement, they sent her a new bill for $20,000+ and filed a lien against her property to get it.

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