http://www.deeshaa.org/2005/01/13/global-disasters-insurance-and-moral-hazard/ Mon, 13 Feb 2012 05:41:09 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.deeshaa.org/2005/01/13/global-disasters-insurance-and-moral-hazard/comment-page-1/#comment-556 Aditi Unknown, 30 Nov -0001 00:00:00 +0000 http://home.blogstreet.com/2005/01/13/242#comment-556 It is all very well to profess about a world disaster relief fund, where each nation(or individual) contributes "according to his capacity and to each according to his need", but isn't that something we have been asking of the rich since ages, yet to no avail? Let us look at global poverty for instance, we all want the rich to contribute more so that the poor come out of their plight, but has anything been done? Or rather, has anything been "worked out"? My question regarding a global disaster relief is not "how to make every one pay" or "what each should pay", but WHY should everyone pay for a disaster in one specific country? It is all very well to profess about a world disaster relief fund, where each nation(or individual) contributes “according to his capacity and to each according to his need”, but isn’t that something we have been asking of the rich since ages, yet to no avail? Let us look at global poverty for instance, we all want the rich to contribute more so that the poor come out of their plight, but has anything been done? Or rather, has anything been “worked out”?
My question regarding a global disaster relief is not “how to make every one pay” or “what each should pay”, but WHY should everyone pay for a disaster in one specific country?

]]> http://www.deeshaa.org/2005/01/13/global-disasters-insurance-and-moral-hazard/comment-page-1/#comment-557 Patrix Unknown, 30 Nov -0001 00:00:00 +0000 http://home.blogstreet.com/2005/01/13/242#comment-557 The moral hazard aspect makes a difference. A primary case being homes along the Florida coast. In spite of being hit by numerous hurricanes (4 last season), people especially the higher income group keep rebuilding because basically the State of Florida is the largest underwriter for insurance there and has significantly lower premiums than as market would suggest. In addition, they are credited with relief aid too in case of damage. The moral hazard aspect makes a difference. A primary case being homes along the Florida coast. In spite of being hit by numerous hurricanes (4 last season), people especially the higher income group keep rebuilding because basically the State of Florida is the largest underwriter for insurance there and has significantly lower premiums than as market would suggest. In addition, they are credited with relief aid too in case of damage.

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