Wheeeeee!!! I’mm Gonnaaaa Diieeeee!!! … Meets The World of Insurance Coverage in China (and India)
May 13th, 2007
Check out this cool pic and adventure activity on the world’s second largest steel towner in Harbin — located in northeastern China, which is not close to where we will be or travel in China). Erik Slayter forwarded me this link (thanks Erik!).
Having typed the above, let’s tie this into business and your MBA studies. The following was a common experience in my prior life as a practicing attorney in working with business clients ….
CASE STUDY:
Business client spends hours and hours, if not days, shopping around for the best price on an insurance policy for his/her business. Then, after buying the policy, sure enough, some type of bad event (called an “occurrence” in insurance parlance) occurs that causes the client an economic loss.
Business client then submits his/her claim to the insurance company under the policy they purchased. However, the insurance company then proceeds to deny the claim and/or coverage.
Client is pissed off at the insurance company because he/she “thought that is why I bought the damn insurance coverage in the first place and I want you to sue those bastards.”
So, the client comes to me for help to try and fix their mess, and he/she in turn also pays to me the money they may have saved in obsessing over finding the cheapest policy they could find. (Thank you client!!).
The client could have likely avoided this problem altogether if they had taken just a few minutes to read over the policy once they received it to get a good feel for what activities or events were covered/not covered under the policy, and then adjust their business practices and behavior accordingly to conform to what the policy does and does not cover.
BUSINESS TAKE-AWAY:
Re: this adventure activity, it looks fun, right? I am sure it is. As is this world’s tallest bungee jump in Macau near Hong Kong, which several years ago when I took students to Macau in southern China several students asked me when we drove by if I would stop the bus and let them give it a go (it was a quick and easy “no” for me) - was not going to be a class sanctioned bus stop or activity).
So as you might expect this is not an activity that we will do as a class or on Cal Poly time. This would the type of activity that is a “completely on your own time” activity, and where you assume any and all of the risks in the event you decided to go for it and were somehow injured.
I.e., back to the business point — this is NOT an activity that is covered by your travel insurance policy for this trip, nor is any loss or injury you incur that is connected with drinking, drug use, etc.
Gotta be careful what you do/don’t do in China/India and always use good judgment. It’s not Iraq or Afghanistan, but is also isn’t Disneyland.
You will receive your travel and medical insurance policy from Cal Poly Continuing Education sometime during late Winter or the Spring quarter. READ IT!! Or risk being like the client/customer I describe above. This part of business is not rocket science, and competitive advantage in part goes to those firms and managers who take a few minutes to actually read and try to understand their friggin’ personal, auto and business insurance policies.
Who would have thought the China/India trip would teach you a fair bit of what you need to know about insurance policies and their tie in to business? If you read, understand and take to heart the above, you are now well ahead of the vast majority of corporate America on this issue …
Prof. Carr March 1, 2009 addendum: Check out this related post that Dan Harris of the China Law Blog just made that gives you a different angle on this unappreciated but very important issue: China Law. What’s Insurance Got To Do With It?
Entry Filed under: Pre-Departure, China, Misc.
31 Comments Add your own
1. Christopher Arena | May 20th, 2007 at 4:21 pm
When I first read this post I couldn’t help but to think about my personal insurance horror story. For all of you who remember back to the summer session classes when I came down with Mono and Streep throat all at the same time. Well my three hour trip to the emergency room at 8pm on a Sunday cost around $600. Via my parents medical insurance I am, thank God, double covered. Well after 9 months, dozens of phone calls, 3 faxes, 8 different bills, and 1 payment by one of the insurance agencies, I am still dealing with this. Both insurance companies claim in writing to the hospital and myself that I am not covered by the policy. But when we get them on the phone, the state that I am in fact covered and that they will pay the bill. My parent pay premiums every month so that they we can have health protection for situations just like this. I was really sick and I needed help and now that its time for the insurance agencies to pay, all of a sudden I’m not covered. Funny how when my parents pay extra money every month for Christopher Philp Arena to be on the policy, they take the extra money. But when its time for them to pay, I’m no longer on the policy. As for the swing, that looks like way to much fun… Whose coming with me?!?
2. Mark Polydoris | January 26th, 2009 at 7:05 pm
Never in my wildest dreams did I expect to be REQUIRED in an MBA program to respond to something entitled, “Wheeeeeee!!! I’m gonnaaa diieeeee!!!!”
That being said, I think those of us that took Dr. Anderson’s class learned the value of waivers, releases, and contracts….it was like taking a class in how to read fine print. The best part of that experience, however, is that my “fine-print-reading-skills” have already come in handy for a number of different situations.
The class also taught us the value of finger-pointing, and the value of shoving the liability as far away from you as possible. There is obviously a lot of validity (and money) in figuring out ‘who is to blame’ for a damage-causing accident or situation, but it can be a very messy (and costly) thing if it is not clear-cut, which it never is.
So for those of you who didn’t take 514 with us…don’t just read the fine print, READ THE FINE PRINT, and more importantly, make sure you understand it. Dr. Anderson taught us a lot of the ’sneaky’ words in contracts/waivers that I would have never understood if it were not for the class…so if you don’t get what you’re supposed to sign, take it to someone who does.
PS - Mossman and I wanted to write a song called “Indemnify Me” in honor of our 514 class. We’re happy to accept lyrical/musical contributions to our endeavor. (Although we will still retain exclusive publishing rights)
3. Katie Moeller | January 7th, 2011 at 11:10 am
I am at fault for not being as thorough as I should be when it comes to making sure I have the right health, car, and home insurance coverage. Often times, the stingy side of me, tries to save a few bucks. I also tend to blame it on the fact that I don’t understand and I don’t really want to take the time to understand. Both are obviously backwards ways of thinking about insurance. In the end, it could cost me a lot of money. At least I am not a big thrill seeker and adrenaline junky and live on the safe side. Either way, you never know when something bad can happen.
After reading and watching the videos from this blog, it has made me a realize a few things. First, read your insurance coverage and make sure you have what is right for you. Second, do not do stupid things. Third, use good judgment. They seem like common sense but they’re not. I cannot imagine how many people fall into these categories. I will definitely take these ideas to heart for our trip to China.
4. David Hart | January 16th, 2011 at 1:42 pm
Insurance fine print can be a complicated thing. This is one of the topics that I believe high schools across the country should teach students. Many people have to learn about it on their own during or after college. The fine print is so important to understand. It can be tricky as well, so ask questions.
Sometimes I will look over a document or form that I am signing and the other person looks at me like I am crazy for reading it. However, it is important to understand what you are signing. It can pay to do your research as well.
The video of the bungee jumper reminded me of my experience skydiving. In addition to signing a waiver, the skydiving company made me write out a sentence that said something like “I realize that I may die performing this activity.” Pretty intense right before jumping out of a plane! I suppose this covered them if something were to have happened.
It is worth the time and effort to understand any insurance policies and what is and isn’t covered. It can be a lot of work to understand these things, but doing so can definitely pay off later.
5. Tim Easton | January 25th, 2011 at 10:39 pm
I have been lucky enough to have my parents cover my insurance this far in my life, I am only 22 though. However, I have heard multiple times that as soon as I am finished with the MBA program I am on my own. Purchasing my own insurance policies seems like a daunting task that I am not prepared for right now. I will need to start doing research to determine the best policies for me. I have already learned my lesson about reading fine print. As an undergrad I signed a terrible lease to rent a house with a couple friends. My friends and I were pressured into signing, or we would lose the house to someone else. So of course we signed and hardly read through the lease or the fine print. The landlord tried to nickel and dime us for everything and we ended up paying a bunch of money in non-refundable deposits and other charges. I have definitely learned my lesson about carefully reading through any agreement and that includes the fine print.
6. Chris Fung | February 2nd, 2011 at 10:09 am
You hear about it a lot in business: “Get everything in writing or else it could get you in trouble.” However, getting things in writing and then not reading what you are getting yourself into can be just as detrimental as having no written agreements. With insurance, I believe you should firmly read the contract and know what your policy does and does not cover. Doing so will definitely help you know what you signed on for and any limitations that might exist. I had to sign a similar contract like David signed when I myself went skydiving. It acknowledged that I could die performing this activity and that by signing their release form, I (or my family) waive the right to sue the company from any injury or death that might occur. I read that contract and knew what I was getting into.
In response to the case study, I am a firm believer in “You get what you pay for.” I have heard and seen the effects of having poor insurance coverage and the headaches that can happen if you had to file a claim with the company. The time and frustration that my friends had to go through to ensure that the claim was completed and that they got fair compensation made it seem to me that paying a few bucks more a month for good insurance would be worth it. For me it has. While I probably don’t have the cheapest insurance policy out there, I have good coverage. When my place of residence was burglarized or when someone hit my car, filing the claim was easy and I was reimbursed surprisingly fast in both cases. My company made the unfortunate incidences seem less unfortunate. Isn’t that what insurance should be?
7. Cassie Bettencourt | February 3rd, 2011 at 5:01 pm
First of all, the guy in the Macau bungee jumping video must be a risk-junkie because I was squirming after simply reading that the “cord was not done right” and this other guy was “fixing it.” I cannot believe he still jumped.
In regards to insurance and many other documents of life (contracts, assignments, memorandums etc.), I think that “reading the fine print” is definitely a habit that we should all get into. I agree that people that do this have a competitive advantage over people that do not, and I would imagine that the majority of the people do not. This is the power of knowledge. With all the different insurance policies pertaining to different aspects of life, it is easy to get overwhelmed and consumed by penny pinching. I believe it is usually better to be over-insured (if there is such a thing) for piece of mind…but that’s just how I am. Like the China Law Blog said, insurance matters, and whatever insurance you choose, it is important to act/conform accordingly.
8. Brady Haug | February 5th, 2011 at 6:25 pm
Just like Tim discussed through his blog post, I fall on the younger side of the spectrum. I have not had to dissect different health care plans and sort through how it best would serve my family. I tend to be a very thorough person and I hope that I don’t fall suspect to neglecting the fine print. I am currently dealing with issues on my lease agreement for my home in San Luis Obispo. My landlord lost the house to the bank and now we have been pushed to cooperate with their demands. Since our original lease never specified how this scenario would play out, my roommates and I have been left to find alternate housing. Situations such as this one have taught me to cover myself from every angle in a deal and to read every word on documents I sign. It never hurts to have someone rewrite a contract if you feels as though you get more security from it.
9. Matt Streiter | February 8th, 2011 at 5:48 pm
This guy jumping off the building is crazy! I don’t care how much insurance I have, I am not jumping off that tower. I believe Bungee jumping and other extreme activities is a result of moral hazard from having insurance. Since people pay for themselves to be covered for any medical injuries they are more willing to take greater risks than they otherwise would.
Insurance is one of those things I hate paying for most but I guess I have never really been in a situation where insurance has paid out in my favor. However, I am sure my viewpoint will change if I have ever had to rely on them. As in situations similar to the dry wall fiasco in China, it is always important to have a policy in place to protect yourself. Furthermore, it is important to get a policy that covers you properly for what your needs are. Everyone has heard and fears the story themselves of something happening that you expect to be covered under insurance but turns out it isn’t. This situation reminds me of a story in one of the “Saw” movies where one of the characters is sick, with cancer I think, and the head of the insurance company denies him coverage because of some fine print detail. The sick man had no other means to pay for any treatment and basically was left to die. The insurance man wasn’t playing fair and thats why Saw got him in the end.
10. Sarah Weinzapfel | February 8th, 2011 at 5:51 pm
All it takes is once. I got screwed one time, and since then I can’t help but think someone is trying to screw me over. I’ve had to sign quite a few contracts on my own and I always make sure to read the fine print. Sometimes I feel annoying reading every word in a lease while the landlord is waiting for me to sign, but it’s worth not risking losing money.
There was one experience I had with a mechanic who replaced a part in my car. The contract said the part will be new unless otherwise stated. When I went to check out the work they had done and realized that it wasn’t the new part they charged me for, I was able to get every penny back (and it was a lot of pennies). Just because I read the fine print.
I, like many of my classmates, haven’t had to experience researching insurance policies for myself, but I know the day is near. My mom is the best researcher I know and I am excited to have someone like her help me with the daunting task. As far as China, I’ll be sure to read through everything and when we are there and I still have doubts about something, I’ll just pass. I especially don’t like to take chances in foreign place/situation.
11. Chris Bruns | February 13th, 2011 at 5:22 pm
After reading the China Law blog and this blog posting, I officially need to go back through my insurance information. I understand that insurance is important, and that it is definitely a necessity in China. Having run into my fair share of headaches with both car accidents and medical bills I know that I should pray for the best, and prepare for the worst. Those few extra dollars I spend now might save me 20x that in the near future. I wouldn’t expect insurance to be the end all/fix all of any problems I might have, but it is better in my mind to be prepared and do all that I can.
That being said, I should be honest about my travels. That bungee-jumping video looked zesty, and had this not been a school trip, I would probably do it. I haven’t always made the best choices for thrill seeking abroad, i.e. diving on the Great Barrier Reef, bungee jumping in NZ, and hang-gliding in Colombia, but I think they have all made some good stories…
12. Amanda Podesta | February 14th, 2011 at 10:03 pm
If you are a fan of Terry Pratchett’s Discworld, you may remember that in “The Colour of Magic” the first “inn-sewer-ants-polly-sea” is sold to an innkeeper who then promptly sets fire to his premise (incidentally an inn called the Broken Drum). After he gets “reeburst,” he rebuilds another inn on the same spot renamed the Mended Drum.
As far as I’m concerned, this anecdote confirms that Terry Pratchett writes in the correct genre. It is only in the realm of fantasy that I can really imagine an insurance company taking a loss.
In my mind, I think insurance and casinos are equitable. They both have all the numbers. They get to set the odds. Most of their work is simply collecting money.
While I applaud the proactive advice to read and understand contracts, I don’t know how proactive a role one can take in really coming out ahead with them. I have yet to be able to replace the feeling of “money lost” with the sanctification of “security gained.” I am going to live forever, right?
13. Will Moeller | February 19th, 2011 at 8:55 am
That jump was just plain COOL. That said, I may not have my first jumping experience occur abroad. Furthermore, if someone told me at the last minute that the cords were tied wrong and needed to be fixed, I’d be gone immediately.
So is bungee jumping covered in my insurance policy? I don’t know, but I would take the time to find out before I ever jumped.
On a more practical note, I have figured out that reading an insurance policy and truly understanding it is impossible. Unfortunately, I did this with a friend I worked with a few years back. Without going into too much detail, my friend/coworker’s son was born with life-threatening birth defects that required several surgeries which are usually performed fewer than 8 times in the United States each year. Is there anything in an insurance policy that clearly covers this topic? I doubt it. My friend had no idea if this was going to be covered despite reading the policy with me and working with our HR department and healthcare provider.
The few takeaways that I got from this were:
first, make smart insurance decsions. Second, ultimately, the insurance company gets the final say in whether you’re truly covered in a given situation. Third, you can’t possibly fathom all the circumstances in which you may need insurance.
As cool as the bungee jumping looks, I won’t be requesting that we stop the bus so I can try it.
14. Jessie Wilkie | February 19th, 2011 at 5:07 pm
First things first, I’m not the adventurous type so I probably wouldn’t go bungee jumping in Macau. Just the idea of a 700ft swing and the youtube video of the bungee jump gave me the butterflies!!! On a side note, of course it would be Aussie’s in charge of the jump. I’m hoping that no one gets hurt on the trip! But if they do, it would be good to know that the plan covers them.
Every nation has different policies when it comes to insurance and I could see this getting difficult if you go international a lot. Also, it will be more difficult for business in this increasingly global climate. I think that this post brought up a very good point about really reading the fine print in any type of insurance documents. Even though I only have a little bit of experience with health insurance, I will have a lot more experience with other types of insurance (auto, homeowner’s, life, business, property, etc.) as I go on with life. As future business leaders, I hope that we all take the time to read the fine print! Not just for our businesses, but for ourselves.
It will always be important to keep this lesson in mind.
15. Jessie Wilkie | February 19th, 2011 at 5:13 pm
First things first, I’m not the adventurous type so I probably wouldn’t go bungee jumping in Macau. Just the idea of a 700ft swing and the youtube video of the bungee jump gave me the butterflies!!! On a side note, of course it would be Aussie’s in charge of the jump. I’m hoping that no one gets hurt on the trip! But if they do, it would be good to know that the plan covers them.
Every nation has different policies when it comes to insurance and I could see this getting difficult if you go international a lot. Also, it will be more difficult for business in this increasingly global climate.This was illustrated well by the drywall example in the law blog. I think that this post brought up a very good point about really thinking about insurance and reading the fine print in any type of insurance documents. Even though I only have a little bit of experience with health insurance, I will have a lot more experience with other types of insurance (auto, homeowner’s, life, business, property, etc.) as I go on with life. As future business leaders, I hope that we all take the time to read the fine print! Not just for our businesses, but for ourselves.
It will always be important to keep this lesson in mind.
16. Jessica Shayler | February 19th, 2011 at 11:09 pm
Ahhh, insurance. I remember spending hours on the phone with AAA trying to negotiate an affordable, yet useful auto policy and to understand what that meant. I’ve also been on the other side. Without health insurance praying I didn’t get anything but “normal” sick (remind me to tell you that story sometime. It’s funny now…). Bottom line is, I’ll be getting traveler’s insurance and reading the fine print - mostly because I am risk averse and detail-oriented. Ever notice how most trouble occurs in the details? It pays (or rather you avoid paying) to have someone like me working with you.
17. Jason Jay Sharma | February 24th, 2011 at 2:51 am
My views on this post run along the same lines as the post on getting locked up while we are traveling in China–play it safe! For those who are excited and looking forward to possibly jumping (or swinging) off a tall building while we’re in China, I’ll take your pictures for you, but I’m EVER going to be doing that. (Watching that video put knots in my stomach as it is.)
While we are traveling, the main reason for our two week stay is an educational business tour and I wouldn’t be willing to take such extreme chances. That being said, there may be another activity that I am come across and would love to partake in that could be considered “risky” for insurance reasons. For this reasons, it makes a lot of sense to review our insurance policy VERY closely. Being naive for some issues may be useful, but when it comes to health insurance and general traveler’s insurance, I wouldn’t take such chances. Insurance in itself is all about being prepared, but having it doesn’t free anyone from taking the appropriate steps to being informed and ready. (As for corporate America, how embarrassing…)
18. Kristine Spencer | February 26th, 2011 at 11:00 pm
I too have never had my own insurance since I am still a student and am still on my parents’ insurance. Insurance is one of those things that seems extremely complicated to me and I will definitely employ a couple of people to help me read the fine print and pick the right policy when the time comes. Insurance and other contracts are very important and we all should be reading and understanding the fine print of anything we put our signature on. If the man from the bungee jumping video had life insurance, I’m pretty sure that jump was not covered! Getting sick or hurt abroad is terrible, and I will be doing my best to avoid any of those situations. Murphy’s Law applies pretty well for insurance (“anything that can go wrong, will go wrong”), and as business people we need to be responsible and prepared.
19. Ashley Ogden | February 27th, 2011 at 10:31 pm
This blog brought up the point that I hadn’t thought about before and that is that most manufacturers in China don’t have insurance. I am sure that most individuals in China don’t have insurance either. I also enjoyed (was shocked by) the statement at the end of the CLB article that said China’s leading insurance company was issuing fake insurance policies!
I have been lucky that my mom has always gotten me really good insurance. She understands that things happen and things go wrong. She always says, “Better be safe than sorry” and I think that is what you need to remember when trying to find the right insurance. I am not a huge risk lover, no sky-diving or bungee jumping for me. But I do tend to get into accidents every once in a while, so I will definitely know how I am covered before traveling abroad in a place where everything is foreign.
20. Tyler Sereno | March 1st, 2011 at 9:08 pm
I will never go bungee jumping. Once the guy told me that the rope was tied wrong, I would have stopped right there. I have seen too many videos of bungee jumps going wrong.
I have also never had my own insurance because I am still on my parents’ insurance plans. But when it comes time to get my own insurance, I intend to read through the plans very thoroughly. I took an economics of insurance course during my undergrad at UC Santa Barbara, and it helped me realize how important it is to take insurance policies seriously. It can never be good to get hurt or get sick in a foreign country, so it is important to use your best judgement and remain safe.
21. Robbin Forsyth | March 1st, 2011 at 11:16 pm
Bungee jumping and skydiving a both rushes that everyone should experience as long as they understand all possible outcomes.
I love to read the fine print. Just two weeks ago I was sitting in my family’s lawyers office for a document signing. Out of the three people required to sign the trust, I was the only one who actually read the damn documents before signing them!
I feel strongly that people need at least make and effort to understand situations that they put themselves into. Only by reading and decimating contracts before we accept them can we be prepared for all outcomes.
22. j hurley | March 5th, 2011 at 11:40 am
That jump was great…
I don’t like basing my judgments off Murphy’s Law, as I am often too interested in the opportunities I may miss if I don’t take the chances. It’s kind of ironic for me to say this as I am typing this in a cast…
To me, life is about taking chances. Precautions can be taken to help improve the outcomes of these chances, and anything that helps build ones life experience is fair game in my book (as long as its just not straight up stupid).
Business is the same way. If you prepare for your future actions, you can increase your chances of success even during times that are out of your control.
23. Tara Millard | March 6th, 2011 at 1:58 pm
Professor Carr, I am glad that you made this a required post. While reading your insurance policy seems like a no-brainer now that it has been brought up, it is a concept that slips most people’s minds. Having been hospitalized previously, I understand the importance of insurance and understanding what your policy does and does not cover. Fortunately, my mother works in the risk management department at a large hospital where she deals with patients trying to sue for the same reason mentioned in the post.
Many people seem to believe that insurance is a cover-all policy, whereas neglect or plain ignorance is generally exempt from the policy. I enjoyed the part of the post about bungee jumping, as I would have been one of those students begging to pull the bus over. I have always prided myself on being a thrill taker, but I had never gotten so far as to realize that taking this unnecessary risk could cost me physically and financially. While I am not going to avoid an adventurous life, I may save my risky endeavors for back at home where my travel insurance is not concerned.
I look forward to receiving the information about our travel insurance and having the opportunity to read rather than skim it. I am hoping that reading and understanding this policy will help to ease my mind and clear away some of the anxiety I have about falling very ill while in a foreign country. After looking at the post about being locked up abroad and having the group continue on their journey, I must ask if this is how a hospitalization will also be treated. While being left behind in a foreign infirmary may not be as traumatizing as being left to rot in prison, I still find it to be a horrifying concept.
24. Randy Camat | March 6th, 2011 at 8:37 pm
“The cord’s not done right” would have been that guy’s cue to get off and call it a day. Man, he’s crazy.
I had the privilege of shopping around for insurance this summer since I was no longer covered under my parents’ policy. In the beginning, I was overwhelmed with all the terminology and different types of plans out there. There’s definitely a lot of fine print to read and understand. All I wanted was a policy that was cheap, reliable, and took care of me when I needed it, but it’s not that simple. This reminded me of the quote, “Quality, Price, Time…Pick Two” except substitute ‘Time’ with ‘Stress/Headache.’ Luckily, effective 2011, I was once again qualified under my parents’ policy, so I cancelled the insurance I had and flew back to the nest.
25. Dan N | March 9th, 2011 at 4:05 pm
I picked a good time to read this post. Last week a group of us were at a coffee shop studying when someone (who I still think the world of) accidentally spilled coffee on my laptop. It took its last breaths right there in my arms…
I have renters insurance so I’m good, right? wrong. here is roughly how the conversation with my claims agent went:
Agent: hmmm… it looks like you have our “basic” policy.
Me: yeah, so?
Agent: yeeaaahhh… it’s too bad that you don’t have our add-on coverage which covers your electronics. geee… unfortunately i’m going to have to reject your claim.
Me: okay… hey justin (that was his name), out of curiosity, how much does this add’l coverage cost?
Justin: (with enthusiasm), hardly anything. maybe a couple of bucks a month.
Me: so Justin, seeing as I have a half dozen electronic devices, don’t you think that I would have taken this coverage if i were aware of it.
Justin: hmmm… yeah…. you’ll have to talk to our policy department about that…
Gotta love insurance providers. I guess it’s my own fault for not reading my policy carefully, all 50 pages of it… lesson learned.
26. Ben Raymond | March 12th, 2011 at 8:17 pm
A couple years ago I purchased a new phone and when they offered “total device protection” for only $60 I bought it without really thinking about it. I assumed total device protection meant total device protection. Well I was wrong. I waited till after breaking my phone to read the fine print and found out it pretty much covered nothing. Now I’m careful to read the fine print. Especially when making a major purchase. I haven’t had to purchase my own health insurance yet but I have purchased car insurance. I will always read the fine print because I know that is where they get you. After having dealt with U.S. insurance companies and hearing that China is even worse, I plan to be very careful and not count on insurance to cover anything.
27. Kyle R. | March 12th, 2011 at 8:40 pm
That was an insane bungee jump and I cannot believe how long he fell. I’m always up for adventure, but something like that has never interested me. I can see why that is not covered in our insurance policy. When it comes to the fine print, I tend to be a stickler. I want to make sure I am getting great coverage, but also for a fair price. I have questioned and/or negotiated with agents before on insurance ranging from homeowner’s to motorcycle policy. I’ve never been in the situation like what was described, where it’s time for a claim and you have no coverage. I hate having to pay for my various insurance policies that I have, but I can rest assured that it will be there when if/when I need it. I’m definitely not a risk-adverse person, but I do try and keep my family safe whenever possible.
28. J Vail | March 14th, 2011 at 12:24 pm
I am pretty bad about skimming over the fine print, but I understand that insurance, like tax forms, have to be read and understood to the smallest detail. I liked Tim’s post because my experience renting an apartment for a year was equally terrible. Our landlord never mentioned any policy one way or another about a dog – in the fine print there was a $125 monthly fee to your security deposit if you owned a dog. Sadly for our roommate who decided to live with his dog, he had to pay the other residents the $1500 that accumulated by the end of the lease.
The worst mistake you could make would be falsely assuming any kind of health or legal coverage and engage in risky behavior thinking that you are safe. It’s annoying to have to throw money away when you act safe, but the fee is definitely worth having a backup plan if something does go wrong.
29. Anthony Kallioinen | March 17th, 2011 at 4:21 pm
That bungee jump was nuts. I’m pretty sure I wouldn’t do it myself, I’m not that way with adrenaline, but I definitely wouldn’t do it if someone had to ‘fix the rope’ because the other guy ‘did it wrong’ before I did. Crazy.
Anyway, I’m sure this dude knew that this wouldn’t be covered in his insurance policy so it applies to the post perfectly. I have to say, I’m one of those people who don’t always read the fine print, and I’m convinced that companies purposely achieve end this by writing those documents full of jargon in size 8 font. Occasionally I will think to myself, ‘why do I spend all this money on insurance? I never seem to use it.’ And then it occurs to me that I am due, and it’s a good thing that I have it. In preparation for my job search, I attended a workshop on compensation benefits. I hope that it will help me to figure out which plan would be best for me when I have to decide.
30. JP Salazar | March 18th, 2011 at 12:16 am
Umm, no thank you. While the bungee jumping video looked intense, that is something that I would never want to take part in. I have never been the adventurous type. If I was meant to jump out of airplanes or off buildings I would have sprouted wings by now. I definitely plan on playing it safe on my trip to China. My goal for this trip is to grow professionally and hopefully learn a thing or two along the way. While I hope to be able to take in some of the local culture, there is no way that I plan on pushing the limits that far.
Luckily I was taught by my parents to pay close attention to any type of contract or agreement that I ever sign my name on. My parents were unfortunate enough to have a really bad experience dealing with a contractor and owner of a house we were living in, and since then made sure to highlight the importance of reviewing contracts.
Knowing what your liabilities are seems like such a basic part of purchasing an insurance policy. You are right in pointing out that there is a disconnect in the rationality of people who shop for the cheapest policy they can find and then complain when it doesn’t provide the services that they expected. The easiest way to solve this is to not shirk the responsibility of knowing what you are paying for. When you sign your name and pay the insurance company it is on you to know exactly what kind of coverage you will receive. The company is not your friend, and they are only liable to what you agreed to when you signed the contract.
31. Omar Pradhan | March 18th, 2011 at 3:07 pm
Your point about reading our insurance policy and conforming our behaviors to what it covers is well taken. It is always good to reinforce that point. There are hazards seemingly everywhere we go in China. This trip has many risk mitigation components to it, including these blogs and the info in our FAQ. I appreciate having these insights to normalize our group’s attitudes toward accepting unnecessary risks.
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