Saturday, March 21, 2009

AIG Scandal

"In nature there are no rewards or punishments; there are consequences" - Horace Annesley Vachell

I can understand the intense public fury over the huge staff bonuses announced by AIG doling out US$165 million to its employees including those executives from the financial products unit that brought the insurer to near collapse. AIG has received US$180 billion in aid to date after numerous bailout from the US taxpayers who are tired of the corporate greed and excesses.

I have a number of insurance policies with AIA for my family and was very angry after they announced a few years back to increase another 4 years of premium I must pay for the policies which was fixed at 15 years. What can we do except to curse and swear at the company for shifting the goal post? The company has mislead us into buying insurance policy from them with small print protecting them from misrepresentation. I am one of those suckers who have to pay a few years of additional premium so that these greedy, dishonest executives can have a bigger bonuses.

Why are we always on the losing end? Why didn't the Singapore government step in to help the thousands of policy holders caught in the same situation? Miscalculation by AIA? 1 year of additional premium would be more than enough but 4 years is daylight robbery! Where are all these additional premium going to? Bonuses for the employees and excutives who have made the mistakes?

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