06/02/2009: "insurance?"

explain for me please:

bank charges are unenforceable in common law, if they are penalty charges ie, if they dont recover the actual loss to the bank.
its the same with any agreement between two parties in any business.

There is legal precedent in law that proves this case - which in the case of the banking industry, was revealed to be in breach of common law when the chief of the banking federation (who represents banks) stated in the house of commons, before a select committee looking in to bank charges when he said:

".... each year we look at how much money the banks lost through bad debts and written off accounts, etc, then we add together all the customers, then divide the two, which leaves us with an amount for each individual bank charge" - this was in response to the question - how do you arrive at Ł35 charge for a non payment of a direct debit?

the banks cannot enforce any charges, as the charge costs do not reflect the actual cost to the bank but instead are just an average of all their losses for the previous year being covered.
the individual is not responsible for a person who loses their house, they are only responsible for what they themselves actually cost the bank, in managing their own account. (apologies for that explanation, not always the best at explaining myself)

so imagine my surprise when i heard today's news reports regarding "set up crashes," for false insurance payouts!!!

the report stated:
"... deliberate crashes to claim money under false pretences, is a becoming a major problem, which is adding Ł40 extra cost to every persons car insurance policy!"

you would be surprised to note, that there are no laws to stop insurance companies from increasing all our premiums to cover their own costs, they can basically charge what they like!
the insurance watchdogs have no teeth or powers to stop it!

yet in any other walk of business life, we cannot be held accountable for other practices which are nothing to do with us and out of our hands!
insurance policies USED to be based solely on the individual's circumstances:
- car insurance - how many previous claims had been made - no claims discount - size of car engine - where the car is kept - security measures, etc.
now we are paying for others ripping off the insurance companies.... when was this allowed??

it must be stopped, and stopped NOW!