Posted: 06/02/2012 at 15:10
HUFF&PUFF - by how much would it push up the cost?
By the amount so that over all races insured, the insurer would make a profit after paying out.
Say 1/100 races were cancelled and each one had 100 runners paying £10.
That is saying 1 in 100 races would need to pay out £1000 back to competitors.
So each race would have to pay at least £10 to insure this. MOre likely each race would have to pay £30 to insure against this (if all races were equally weighted in terms of cancellation), as the insurer would (a) have to cover their overheads and (b) make a profit.
That's fine you say, that's only £0.30 per competitor.
So now you enter 100 races over space of a few years and 1 is cancelled. You get back your £10, but you've paid £30 to get your £10 back. Still want insurance for low value items?
I've simplified this slightly, as the company taking out the insurance will no doubt want to include admin costs for the cancellation, say another £100 to copy and post all the letters out and employ someone to do some of it...That adds a few more pence to the insurance.
Then someone thinks they should get a refund on their hotel they stayed in, then someone wants to claim on their new race shoes they bought, even though its a spurious claim, then insurance company has to deal with that, eventually involving a court case and their solicitors and a barrister. This costs them a fair bit, so they now charge £50 per race and you are paying £50 to get your £10 back...
That's how insurance works.
Personally I'd take the £10 loss every now and again rather than worry aboutit. Only insure those things your really cannot do without, or do not want to do without, or as required by law.Motoring, yes, House contents and buildings, yes - you can't live without a home. Live insurance, so your children can grow up out of poverty, yes. £8.00 for Insurance on a £50 MP3 player...errr. No.... Thank you.