If everyone truly understands how the insurance policy works no one will get insurance policy. First of all, insurance companies are there to make money, not to help you so don't expect them to help you unless they made money from you. Insurance is like gambling, what are the odds of you claiming more than the premium you paid. My wild guess is that insurance company only pays 10 sens for every 1rm revenue paid. Maybe a 20 sens for operating cost, 30 sens for commission (your agent) and 50 sens profit. Of course they have a big cash pool in case if a really bad luck like a plane crash where there will be a lot of easy to file claim. Just from your experience can you imagine how much time and effort insurance company will pay just so you could not make a claim. That money could have just been used to pay your claim, but then again fraud is everywhere. Put it simply your chances of getting the most of an insurance policy (meaning claiming more than you paid for) is probably only in the 1%. So if you think your that lucky, then go get insurance, if not, better just save and insure your self.