Friday, June 18, 2010

Some very good malpractices in India

"Now a days I am doing a very good work for the society , this is a kind of philanthropy to the victims, also a very good earning to me too." these were the words of my lawyer fried who just started to filed cases on compensation bases for the compensation of those families who had lost their near or dear one in road accidents.
But he explained me this all, very bravely. [I could not understand, he was doing his marketing or was telling me for my shake?] His new boss, in this profession since old time, has done a lot of favor of common people...also he earned a lot for himself too. As well as he has collected working capital and fixed assets for the same business.
Now, he discussed with me what actully this business , working capital is ?...... They claims to the court for compensation to the victim's family to the owner of vehicle by which accident has occured and later on share the money at fix ratio or described before the deal, if they are rewarded by it, However the success rate of getting reward is 99%. In most of these cases the compensation is given by the Insurance companies as the vehicles are insured.. and the company,s lawer also gets some share of the amount to loose the case.( however he also gets salary from the company)..... this is called BAZIGAR (har ke jeetne wale ko bazigar kahte hain).... Further, some other characters also contributes to the story .... when an accident is by unknown vehicles than here comes the working capital of new boss in picture....as he has acquired lot of vehicles to there relatives. He puts these vehicles in the FIR that accident was by his nominated vehicle. At the same time police gives nod to the incident in revert back of some gandhi g(money). Again a fake drivers gets bail plus some gandhi g for the fake accident. Finally, the insurance companies lose money atleast to ten families in the whole drama. The real looser are insurance companies or we all? ....... Being a financial professional my concern is, Is this good for the society or bad for the finacial system?? Because we all are ultimately looser to increased premium or adverse selection and moral hazard problem of the few business men like new boss.......
So, next time, you all please, be ready to pay the increase insurance premium of your vehicle .... this is also an oppurtinity to new lawyer professionals to show off there enterprenure skills to start a niche business......

1 comment:

  1. Irony. .. such malpracticeners are having a proper place in the society.

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