Monday, January 11, 2010

Camera & Insurance

I am wondering when would we need an insurance for our cameras or when would insurance companies spot this opportunity. More and more people are spending an exorbitant amount of money on cameras. *cool*


25 comments:

Sophos said...

can meh.. camera so fast outdated.. haha

nostalgia.jesskang said...

Good point to be considered....

but some do not change that fast.... because their camera cost as much as a kancil..

Sophos said...

so u gotta make ur insurance exclusive for only full framed cameras? lols den do you insure my new lenses and stuffs?

Sophos said...

and hey! im supposed to sleep! haha

nostalgia.jesskang said...

lenses sure... haha

Sophos said...

so if i were to give my lens to my friend and I say someone stole it.. does it mean I have to report police? and that also means that my lens got a serial number?

So if my camera is damaged, by Jess, for example, I've to go to the police station, and ask a camera repairman to check how much is my damage and then the insurance needs to "claim" from Jess's insurance account even if her camera is just some 1.3mp? hahaha.

Okay, I know that's for cars and doesn't work for cameras lols

nostalgia.jesskang said...

so if i were to give my lens to my friend and I say someone stole it.. does it mean I have to report police? and that also means that my lens got a serial number? >>> This is moral hazard in the context of insurance.

So if my camera is damaged, by Jess, for example, I've to go to the police station, and ask a camera repairman to check how much is my damage and then the insurance needs to "claim" from Jess's insurance account even if her camera is just some 1.3mp? hahaha >>> May not need to go police station, but go to the camera repair workshop set up by the insurance company.

Sophos said...

LOL but gotta make police report 1st ma not meh hahaha.

i cannot think of any reason to make insurance for camera to be a problem at the moment LOL

nostalgia.jesskang said...

Just like you own a medical card, when you are sick and warded, you do no need to report to the police right?

Sophos said...

okay, probably that's because nobody can steal your health. But if people cut ur hand or something then maybe you report police?

So if someone is to steal my camera, can i claim my insurance or do I have to make a police report?

nostalgia.jesskang said...

Haha.. yea.. perhaps stolen then need to lodge a report...

If accidentally drop it, maybe no need but just send to camera repairman.

Actually for health insurance, there are many moral hazard cases as well, when doctors know you have insurance, they will always suggest you to go for operation instead, so that they can earn more..

And insurance companies really take into the account of all these, SO, insurance companies REALLY earn a lot!

Sophos said...

so.. let's say my camera cost me 20k, and I have 3 lenses, 1k, 2k, and 3k, respectively. what would my insurance plan be?

nostalgia.jesskang said...

Sometimes insurance might not be so specific, whereby actuaries would just design the policy for a limit. Like a certain policy insures a camera body and up to 4 lens.

So if you lenses and body are very expensive, then you should buy higher limit policy.

Sophos said...

lydat ahh.. then hor.. if i got 4 lenses di, and i buy new lens how how how? change package ar? lols. so the insurance slip also got specify which lens model and blablabla? because later I have 10 lens and only insured one lens then I can like simply say this was the lens that was insured lols

nostalgia.jesskang said...

There is another insurance called umbrella insurance, it is something like a top up, once the damage/loss exceed the limit of your "original" policy, umbrella insurance will pay.

nostalgia.jesskang said...

That is quite a good point too.. Lenses... Hmn...

Need better strategies to tackle the problem... Perhaps one needs to register with the insurance company when one purchases a new lens. I dont know... hahahha

But as I know, for group insurance, like those company buy for employee one, they do add in the new employee, and no need to purchase a new policy... But i guess there is also a limit for the amount of employee insured.

So if you have one camera with 4 lenses, then dont buy the policy insuring only 4 lenses if you know you will purchase new lens this year :)

And I guess, this insurance normally lasts for one year only, just like car, medical health, etc

Alvin Soh said...

It seems that there are many moral hazard in camera insurance. Perhaps, the policy can be designed in various ways to overcome them:

1. "If I give to xxx my lens, and I make a claim. Then how?"- The actuary can design the policy such that stolen parts/ camera is not insured

2. "If I purposely break my lens, and I make a claim. Then how?"- The actuary can design the policy such that the coverage is only 50% of the loss. This aligns the interest of the insured with the insurer. Or, the policy might have a deductible of RM 500, let say, that the insurer only pays the loss in excess of the deductible.

3. "If I have n lens now and I buy m lens every k day, how should the plan be?"- The actuary can separate the price of insurance policy on each lens, so that if you want to insure your additional parts/ lens, you just pay more to get them insured.

4. "Do I need to report to police for the damage of the camera?"- Well, you just have to bring it to the repairman designated by the insurer. You will get paid 50% only if the repairman announces that a. that is the camera that you insured; b. It is damaged.

Sophos said...

"The actuary can design the policy such that stolen parts/ camera is not insured."

That gives me a good reason not to buy your insurance. Because cameras are not easily spoiled or damaged with proper care (unless you drop on the floor or something).

The primary reason that my camera needs an insurance is because I'm afraid that my camera and its parts may go missing.

Car insurance is much secured in a sense that it insures the lost of the vehicle and the various damages of the vehicle. (First party insurance I'm referring to)

As for medical insurance, it is because we don't know when we will have to go through costly treatments, or when we will die and leave our family impoverish. So medical insurance somehow provides a safeguard indirectly to our lives as we know that human life is feeble.

Of course you may say that accidents happen. Comparing handling a camera to handling a vehicle, handling a vehicle provides higher chances for casualties. As long as you handle the camera with proper care (as mentioned above), like putting the strap around your neck...buying an insurance to "protect" my camera is totally unnecessary.

Raise your hands if you've bought your second camera when your previous camera is still in good shape?

Anonymous said...
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Dorae-ong said...

So many discussion.

Alvin Soh said...

Haha.

I don't really believe that I will die in the next 20 years. I will get married, have a family, and I will see my children to get married, and even my grandchildren to bear children. What do you think?

It is just about your perception on the risk that you are taking, and how much value does the insured object worth.

I mean... we might not understand the heart of a RM30k-camera owner. You are not concerned about damage on your camera, but, he does.

And for poorer ones, RM 1000 means a lot to them. They would rather pay RM 20 every year to get their beloved camera insured.

As for me, like you, I will not buy insurance for my camera. Camera is not really important for me. LOL.

It is all about our valuation on the camera. We never sell, we never know.

Sophos said...

Okay, you've got a very good point. Probably the owner of a RM30k camera would pay RM2k per year to protect his camera. Hahaha.

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Alvin Soh said...

Haha. I am not into the pricing, but I believe it is not that much. Perhaps, RM 800-1200.