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Chuks Udo Okonta
Encouraging people to buy insurance to mitigate their risks is far better than donating money to them when they suffer a mishap.
Over the years, governments and individuals have been donating money to people who suffer losses to mishap. Though there are mishaps that are not covered by insurance, but those covered should be insured and not be tackled through donations.
People should be encouraged to buy insurance to cover their lives and properties, which is more rewarding than seeking donations to rebound in the time of risks.
Why insurance is better than donation.
* Restoration to state before risk
It is only insurance that can restore an individual promptly to the state he or she was before suffering a risk.
Though donations would assist, but they may not come when needed as they are only a promise and not bound by any law.
As long as premium is paid to cover a risk, claims would certainly be paid, but donation is not certain.
Getting insurance claims can be enforcement by law, but pledges – donation cannot be enforced.
Insurance gives an entitlement to policyholders, once a premium is paid and the be attended to whenever they suffer risks, but donation is just a promise which can never be fulfilled.
Mishaps are better mitigated through insurance, hence, people should be encouraged to embrace insurance and not to be supported with donations.