Insurance policy: Taking smart advice is better than overconfidence and experience


An attorney named Krishna in a sleepy town purchased a box of very rare and expensive cigars and insured them against fire among other things. He smoked his entire stockpile of these great cigars within a month; Krishna filed a claim with the insurance company without yet having made even his first premium payment on the policy.

In his claim, Krishna played boldly stating that the cigars were lost"in an encounter with rounds of small fires." The insurance company refused to pay, citing that the reasons were obvious that the attorney had smoked the cigars in the normal way as other smokers do. Attorney, Krishna sued and to everyone’s surprise, he won.  In delivering the ruling, the judge agreed with the insurance company that the claim was not serious in content. The judge stated nevertheless, that the attorney held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered” unacceptable fire," and the insurance company was obligated to pay the claim. Rather than endure lengthy and costly appeal process, the insurance company accepted the ruling and paid Rs. 15,000.00 to Krishna for his loss of the rare cigars lost in the "fires."


However, to his bemusement after he cashed the check in the bank, the insurance company had arrested him on 24 counts of arson. With his insurance claim and testimony from the previous case, which used against him, Krishna was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a Rs. 24,000.00 fine.

So now, you understood how an experienced attorney, like Krishna, caught red-handed for getting involved in forgery. People, themselves knowingA so much make mistakes and in country like India, most of us are not financially literate.

So Moneymindz, thebest free financial advisory service is right beside you before taking any wrong step. We think for you and your future.



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