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Insurers 'could Provide Welfare'

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http://news.bbc.co.uk/1/hi/business/8170265.stm

But consumers would need to take out insurance against sickness and job loss as a result.
The report suggested that the insurance sector had the capacity to play a much bigger role in providing benefits like jobseekers allowance and money for those on long-term sick leave.

Taking on 5% of the burden from the government would save the Treasury billions of pounds, but would mark a fundamental shift in the welfare state, which is funded by taxation and National Insurance contributions.

So is this what they have planned, same as everything else this government does it'll be more expensive.

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Guest BoomBoomCrash

Shouldn't that be 'Usurers could provide welfare' of course first the Usurers need to get themselves off of welfare.

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They could call it "National Insurance" and for ease of collection give everyone a personalised number and then take it directly from your paycheque.

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They could call it "National Insurance" and for ease of collection give everyone a personalised number and then take it directly from your paycheque.

Except add 100 more clauses so you can never actually claim on it.

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Shouldn't that be 'Usurers could provide welfare' of course first the Usurers need to get themselves off of welfare.

Indeed. They are on the drip anyway so what's the difference - 1st hand unreliable and unfunded futures, or ones delivered through an intermediary who will take profits as well?

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http://news.bbc.co.uk/1/hi/business/8170265.stm

So is this what they have planned, same as everything else this government does it'll be more expensive.

Completely Crackers.

You can get insurance now if you want, but it costs a lot.

So will you get to pay less tax if you insure yourself privately? How will the Government make up for the shortfall as people opt out?

Of course when the depression hits, and claims need to be paid all at once, the insurance company will get stuffed as everyone will know that it has to sell assets to pay up. It will go bust, of course, leaving the state to pay out anyway. Meanwhile, those shareholders who took the dividends and sold up just before the crash will be quids in.

And lets not forget that welfare does force the government into using its automatic stabilisers (Bit of a tautology in that sentence). Increased government expenditure on welfare helps to bring the economy back out of recession. If that need to spend on welfare is taken away, the economy wont necessarily repair itself, according to Keynes at least.

This is the latest mad idea from someone who should be leaving things like this as they are. This scheme creates no value, and simply transfers wealth from workers to insurers in the first instance, and then wealth from the same workers again to those who need welfare.

I have a good idea, why dont we transfer wealth to workers. It might encourage people to work and create wealth.

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FFS!!!

Well, labour did say pre-1997 that economic policy would no longer be decided over beer and sandwiches with the union leaders.

Had they mentioned that instead it would be decided over caviar and champaign with a bunch of bankers who can't believe their luck, they might not have got as many votes..

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I can see this idea working but I have moral objection to it all the time bankers get unlimited access to taxpayers' money in the form of bailouts. Shouldn't banking failure be catered for by the private sector too?

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More last minute looting.

Ultimately they'll want you to pledge your vital organs inm exchange for benefit payments, and when no one is looking, they'll push you under a bus and claim them.

Course, the "free market" will get the blame.

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good idea if you can opt out of the governments version.

so if they increase the 0% rate to say £20k for everyone opting out then it would be good

however as always they will keep the tax, and get you to pay for insurance on top.

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To top it all, my NI has just gone up. Feckers.

If the insurance industry get involved, watch your NI contribs explode further! FFS, they'll want to make a reasonable profit innit. Hardly rocket science!

Edited by gruffydd

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One question. How do you pay this insurance if you're already on the dole?

The government would presumably make the contributions for you. I believe this is how the system works for healthcare in places like Germany.

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You pledge your kidneys.

:lol::lol::lol:

I looked at the thread and the direction it was going in, I saw your name next and I KNEW the respone was going to be like that.

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Of course when the depression hits, and claims need to be paid all at once, the insurance company will get stuffed as everyone will know that it has to sell assets to pay up. It will go bust, of course, leaving the state to pay out anyway. Meanwhile, those shareholders who took the dividends and sold up just before the crash will be quids in.

Well, my thoughts almost exactly except I would not blame the shareholders. Remember, they have to get their timing right or the pittance they've got from a few years divis will be wiped out. How do you figure bank shareholders have fared lately?

Rather the winners will be the usual scum - frontline salespeople on bonuses and management with 'contracts'.

Moreover it will be these lot that propel the industry to disaster by taking on too many clients at paper-thin profitability.

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