As to why the numbers work out like that, it's probably something an actuary could answer better but I expect it's because most payouts will be around or under the $1million mark, so even if you have $3million cover, most times a claim is made the payout will be less.
I guess this means that it's just better value for money to take out the $3 million cover. On Fri, 2008-04-18 at 09:49 +1000, Robinson, Peter B wrote: > > Our club has been investigating self insurance and whilst trying to > unravel the web of insurance I discovered the following. > > > > For those pilots who only carry $1M 3rd party liability insurance for > a single seat privately owned glider the cost is $693. > > > > The actual cost of the $1M cover is only $225 but the insurance > company has a minimum policy cost of $500 which equates to $693 when > you add in all of the fees and taxes. > > > > Maybe GFA can put pressure on our insurance company to remove or > reduce the $500 min policy fee for its members. > > > > The other point is that for the same cost you can increase your cover > to $2M and for an additional $12 you can increase you cover from $1M > to $3M - makes you wonder why they even offer $1M and $2M cover > policies. > > > > > > Regards > > Peter > > > > > > > > ______________________________________________________________________ > The material contained in this email may be confidential, privileged > or copyrighted. If you are not the intended recipient, use, disclosure > or copying of this information is prohibited. If you have received > this document in error, please advise the sender and delete the > document. Neither OneSteel nor the sender accept responsibility for > any viruses contained in this email or any attachments. > > > _______________________________________________ > Aus-soaring mailing list > [email protected] > To check or change subscription details, visit: > http://lists.internode.on.net/mailman/listinfo/aus-soaring _______________________________________________ Aus-soaring mailing list [email protected] To check or change subscription details, visit: http://lists.internode.on.net/mailman/listinfo/aus-soaring
