Lucky draw on a donkey.

Here is one of my favourite jokes which has some relevance to insurance.

A young man bought a donkey for $100 from a farmer. The donkey died. The owner thought of a way to get his money back. He arranged a lucky draw for the donkey, sold 100 tickets at $2 and collected $200.

The winner of the draw came to collect the donkey, found that the donkey was dead and made a complaint. The owner refunded back his $2.

The moral? Some insurance companies collect your premium. When you make a claim, the reject the claim (or refund back your premium) on the grounds of non-disclosure or other reasons. Look for an insurance company that is honorable in paying claims, and in treating customers fairly.