The insurance acts to compensate the loss, does not act to avoid the loss. The factors, which are responsible to take measures to reduce the losses are many like the government laws, safety precautionary rules, honest administration, common sense among the people, strict punishment to the violators of the rules and regulations, etc. The premium in the developing countries like India and Pakistan, compared to the developed countries, is much higher due to the reason that the factors mentioned above lack in enforcement. As a result, the hazards, which pose the peril of deaths are much higher.

For example: Traffic accidents kill almost 10-15 people daily in every city. This is due to the lack of traffic discipline among the people, corruption in the traffic department, improper roads, etc.

Crime rate is increasing day by day. Every city’s newspaper is a witness of many murders, suicides, stabbings, kidnappings, etc. everyday. Most of the killings take place due to political rivalries, land grabbing and business interests. Political and religious rallies called by the leaders for the sake of showing ‘mass strength’ kill several innocent people in firing, lathi charge, etc.

The religious festivals cause a number of deaths. The fire works of Deewali, falling from the roof by kite flying during Basant festival, the drowning in Holi and Dubki Punnam and stampede at many temples, shrines, mosques, etc. cause a number of deaths. In Lahore city, several people die every year in the Kite’s festival due to the sharp thread falling on the necks and throats of the people in the traffic.

Religious shrines, situated in the heavy traffic areas cause a number of traffic accidents. In India and Pakistan, the religious madness, without any logic or sense, is common. People establish small temples, Chillas of Ghouse-Azam, graves, etc. right in the middle of the roads. The crowd of worshippers becomes a terrible peril to the flow of traffic and cause a number of accidents.

In India, the religious madness is so high that the man made gods are in competition with each other. If a Hindu group installs an idol under a bridge, a Muslim’s Chilla or a green flag appears across the road.

The vendors’ stalls, small shops and mobile carts occupy the footpaths as well as half of the main road. The police and the municipality do not take action either due to the bribe they get from these vendors or due to the fact that the political leaders come forward to protect the interests of the vendors to protect their vote bank. So, the political domination is the main hurdle in removing the obstacles from the roads. As a result, the traffic jams, accidents and quarrels on the main road are common scene in India, Pakistan and Bangladesh.

Riots can flare up anytime. A small incident due to traffic congestion, a religious procession or a vendor’s arbitration can incite communal feelings and the fascist groups promptly take advantage of the situation. The political interests are also involved in every riot. There are sporadic infighting between groups of people such as Hindu-Muslim in India and Shia-Sunni in Pakistan along with Barelwi, Deobandi, Mohajir, etc. In Bangladesh the political rivalry among the common people is much severe than between political leaders. As a result, the merciless killings and lootings are common phenomena in the daily life.

The police and army atrocities, corrupt judiciary and state terrorism give rise to anger and temptation to retaliation; this compels the people to revolt with terrorism. The terrorism is the product of unfair injustice, police and army’s irresponsible actions and corrupt leadership. As a result, the bomb blasts, firing, ransacking and street fights erupt very easily. The so called “Islamic or Muslim terrorism’ in India, Hindu fascist parties who are unfortunately in power in some of the states, revolt in Kashmir, Khalistan, Nagaland, Naxalites, Harijan versus Brahmin bloodshed in Bihar and other states, Balluchistan movement, MQM (Muttahaddah Qaumi Movement), Sindhi Movement, etc. in India and Pakistan are the products of the Governments’ failure in establishing justice, civil rights and law and order.

The poverty is also one of the main reasons. The educational and moral values do not exist anymore where there is poverty. As a result, theft, killing, pick pocketing, snatching of gold chains and purses from the ladies, etc. take place every day. In northern India, it is reported that hundreds of people die every year due to the throwing away from the running trains. The unsocial elements grab the innocent people and take away their belongings at the point of knife. If someone resists, they throw him away from the running train. The Naxal movement too is a product of poverty and extremism which takes the lives of many every day in many parts of India.

The factories are not equipped with the safety measures. Consumer control system, public health departments, anti-corruption departments and grievance redressal machinery are corrupt. The hygienic protection lacks in the common life. Hundreds of people die due to heavy rains that strike in the form of flash floods mainly due to lack of flood control management as well as lack of proper sewage system. viral infections, which spread all of a sudden, poisonous liquor, unhygienic spurious food stuff in the markets, lack of pest control etc. are most common. The concerned departments who are supposed to protect the human life are highly corrupt. The corruption is so common that from a small constable or a peon to the Chief Minister, everyone has his share in it; therefore it is not possible to provide a clean and safe life to the citizens.

Hence, one can say that the people in India, Pakistan, etc., unlike the American or Europeans are more prone to deaths or loss of properties. So, premium is higher as the insurance companies carry greater risk.

It is not possible to discuss here how to prevent the political, religious or social chaos as mentioned above, but we can suggest how to prevent the risks and how to minimise the losses. Life Insurance is one of the important sources of handling risks. But, unfortunately, this is one of the most misunderstood subjects. There are two reasons for the misunderstanding.

1. Failing to understand the real damages due to the confusion over the legitimacy of insurance and lack of knowledge.

2. Failing to understand the real benefits of adopting the methods of handling risks