Gururaj’s Rumination

Rumination – The word says it all…

Can I insure my Job?

with 10 comments

While at work I prefer listening to Radio instead of using Music Player like iPod. The other day on Radio (Radio Mirchi 98.3 FM) there was this interview with one of leading Insurance Company Head- Arg! I don’t have much details on the interview. The point is that this executive was talking about insurance and how these days people are insuring different non-tangible substances even including the Marriage Reception to hedge if it rains or people don’t turn up to the reception as in expected numbers.

Following my previous post on Job Risk in the gloomy market what struck is whether on the sames lines as marriages can we insure our job and get compensated only when we’re fired? On the contrary will the Insurance company provide such a policy to salaried individuals?

I know in reality this is remote possibility but in the virtual world say it’s exists. Given such a policy exists, how will an Insurance company verify whether the policy holder indeed got the pink slip. One possibility is that if the Employer hands the relieving letter stating that the Employee in question is being shown the door. Terrific, that’s a legitimate way. But, again what negative impact will it have on the Employee’s career. Will he be able to easily get new job given that he has been fired from his current job; irrespective of reason (the new Employer will request for the relieving letter from the previous Employer). That doesn’t seem good, does it?

In fact the whole topic sprouted from the point that the US market is going into recession and the Indian companies have also started feeling the heat. Likewise, any Insurance company, whether this policy exits or not, has to manage the money (it is drawing through Policy premium) only to repay to the Policy holder in terms of Endowment or Claim (the two types of plans Endowment plan and the Risk only plan) and it’s employee’s too. One way an Insurance company can multiply money is through investment in the Share market and on the other is through Loans, or possibly through Fixed Deposit in Banks. Be it an Insurance company or a Bank or any other peripheral entity finally has to invest the money in the Share market to repay it’s investors.

Talking about the Share market, everybody today knows that it’s not worth investing in the market for Short-Term returns. This also means there will be an adverse affect on Share Holder’s Holdings.  Here the root being the entity which directly invested in the Share market, branches being the middle entities like Banks and Insurance companies, and the leaves being the Policy holder or individuals who have entered the Share market directly or indirectly.

If the root is not able to extract the required minerals out of soil (Share market) the whole tree will dry out of minerals, unless someone waters and puts fertilizers (adding liquidity to the market), and eventually will die. Similarly in the dismal market the Insurance companies cannot double or triple the money and eventually cannot repay the Policy holder.

Coming out of the virtuality I know there’s not such Policy to benefit from. I better stop daydreaming here and get back to my work. I BETTER WORK HARD TO SAVE MY SKIN 😉 I don’t want to be fished out of pool that too in such yet to become worst situations.

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Written by Gururaj

September 18, 2008 at 11:01 pm

10 Responses

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  1. @Veeresh – Thanks for the nice words. You can very well understand what’s going in corporate world and how software professionals are anxious about the job security. And I’m one such in the group which prompted me to write this.

    Gururaj

    November 3, 2008 at 10:40 pm

  2. Nice article and very well thought dude.

    veeru

    November 3, 2008 at 9:56 pm

  3. Manasa- Though I didn’t understand much from your statement but definitely the US presidential candidates will you use this as a hot cake during their campaign.

    No matter who’s going to lead the herd post presidential elections the era of Investment Banking has already doomed. The only two IBs, Goldman Sachs and Morgan Stanley, have now become the Bank Holding companies and will now be strictly regulated to save the Investors.

    Gururaj

    October 5, 2008 at 11:24 pm

  4. Most companies are US based. When top investors like Lehman are gone, there is much to happen after the US elections!

    Manasa

    October 5, 2008 at 10:23 pm

  5. Hey thanks dude.

    May be we initiate this trend or even start our own Insurance firm with such policies.

    Gururaj

    September 24, 2008 at 9:14 pm


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