The Cost of Moral and Social Insurance of the Past vs. Contemporary Insurance of Present! Read these Viewpoints

Dear Friends,

Recently, one of my friend’s relatives came to the city for a medical checkup. They live in a village. Upon completing the checkup and inquiry, the doctor suggested an immediate heart operation. She holds insurance to some extent. However, attendants (neighbours from their village) had to take up rooms nearby and buy food from outside. Her children, who work in another state, visited this place. They have their own insurance, but most company insurance products do not cover parents. There is a coverage issue in the parents' insurance. The intertwined complexity continues.

Let us compare this situation with 20-30 years ago. The concept of insurance meant Life Insurance of India (LIC)! We were not even aware that Life Insurance is just one of the products of LIC! When there were any such health issues, people from the village used to depend on relatives in the city. They were provided with room, food, moral support, sometimes financial assistance, and more! The help used to be a wholesome package from the relatives! Do you remember this? Every day, someone from the village would visit them in the hospital, bringing fruits, healthy food, coconuts, and more! They would stay for a few hours and leave! This process continued until the last day of the hospital stay.

Moral and social insurance was predominantly based on community support systems. These informal networks relied heavily on the bonds of kinship, friendship, and neighbourliness. Be it illness, death, or crop failure—the community would collectively bear the burden. This system was deeply rooted in social cohesion and mutual trust. Even enemies in the village would visit during such events! The visitor’s strength depended on the strength of social ties and equations. It was predominantly understood as a moral obligation.

In contrast, today we are all dependent on multiple insurance products. Today, fear, anxiety, and distress, are driving us to buy so many insurance products. Parametric insurance represents a modern, technologically advanced approach to risk management. The payouts are based on predefined parameters like weather conditions, natural disasters, or specific economic indicators. People are buying indemnity insurance, life insurance, health insurance, auto insurance, property insurance, accidental insurance, travel insurance, disability insurance, liability insurance, business interruption insurance, cyber insurance, credit insurance, marine insurance, pet insurance, workers' compensation insurance, renters' insurance, and this list grows every year!

Fear is the root cause of this world! The missing compassion drives us to resort to more such products. It is not just an individual or family issue; this is a reflection of society today. In those days, we used to depend much on Karma Philosophy. God Consciousness drives away the fear factor! The missing links in the modern approach making us to depend on these props.

Despite all the coverage from these products, they still lack the personal touch, social bonding, and emotions inherent in traditional systems.

The cost of moral and social insurance of the past is priceless!

Regards, Ravi Saripalle

Note: Views are personal.