How an Insurance policy can be taken to compensate for a crime?
It is said that Insurance companies shall pay a part of 660 Million $ paid on behalf of Roman Catholic Archdiocese of Los Angeles to settle Clergy Sex Abuse of children.
I understand Insurance on Accidents as accidents do happen, but sexual abuse is intentional.
Will that not encourage the Abusers?
Rahul
I tried to get information on the link you provided at both Yahoo & Google but it said no such kinks.
Sorry Brother
I wrote Rahul instead of Rohit.
Normally, insurance only pays out on the DEFENSE COSTS of a sexual abuse or molestation claim. I’ve read LOTS of different policy forms, and I’ve NEVER seen one cover anything besides DEFENSE COSTS.
There are many different types of insurance, especially corporate insurance. This is most likely a Liability policy that covers the organization against catastrophic financial losses due to the neglegence, criminal behavior and harm done by the organization’s employees. While the events that resulted in the judgement are horrible, the financial protection of the organization is what is protected by the liability coverage.
I don’t think anyone sick enough to commit those types of acts really considers insurance coverage before they abuse children. The pope saying ‘hey we’re not the only organization that has problems with perversion’ is simply not enough coming from an organization that should hold itself out as morally ideal.