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Wal-Mart profits from employee deaths!

I don't see what is shady about it, as long as Walmart isn't killing its insured employees. Why would the family get benefits from an insurance policy to which they were not a party? Now this is shady:

Meanwhile, National Convenience Stores also has bought accidental death policies on its employees. When an employee died at work, such as in a robbery, NCS received $250,000, Clearman said.

The insurance came to light after an NCS manager died in a car wreck going to get change for the store, said Clearman, who represented the estate of the deceased employee, Ramon Pamez. The case is set for trial beginning Monday in state district court here.

Because it had insurance, NCS did not have incentive to provide security at the convenience stores, Clearman said.

At the same time, Diamond Shamrock was installing bulletproof glass and putting in two employees at night, Clearman said.

Between 1991 to 1995, Diamond Shamrock had one on-the-job death in Texas while NCS had nine, Clearman said.
 
I doubt they're *making money...more like covering their own arse.

Imagine all the expenses that come with an employee's death
 


<< Green is also concerned that an employer may have a disincentive to provide a safe workplace because he would profit from the employee's death. >>



That has to be one of the most ridiculous assertions i've ever heard. Why would a company like WalMart risk a multi-million dollar wrongful death lawsuit in order to collect on a couple of thousand dollar life insurance policy? For heaven's sake people, use your heads
rolleye.gif
 
I don't know about you, but I don't want the company that I work for to make money off of my dead, underpaid corpse. 😉
 
I read the whole artically, so basically Wal-mart is buying insurance polices on their employees, then when they die they get the money.I see nothing wrong with this, it doesnt not harm/effect the employee. If they want to do that they should be able to.
Seems to me the people who found out (realitves of the dead employees) are the greedy ones, claiming that the money is "rightfully" theirs as they put it. Um no, if you want a damn life insurance policy on them get it yourself and pay for it yourself, nothing is inhibiting that...
 
Hey, this is my employer but it looks like they no longer do this. I think this policy basically covers walmarts arse when someone dies. It is very possible to die working at Walmart because of falling pallets, fork lifts, etc.
 


<< Why would a company like WalMart risk a multi-million dollar wrongful death lawsuit in order to collect on a couple of thousand dollar life insurance policy? For heaven's sake people, use your heads >>

Because a company like Walmart has a battalion of well-paid attorneys with which they can defeat such lawsuits...tax deductible of course.

It would be very difficult to make a successful wrongful death claim in a work-place accident unless company negligence was a contributing factor...and you can prove it.
 


<< Seems to me the people who found out (realitves of the dead employees) are the greedy ones, claiming that the money is "rightfully" theirs as they put it. Um no, if you want a damn life insurance policy on them get it yourself and pay for it yourself, nothing is inhibiting that... >>


Actually, you missed some of the pertinent parts. For one, it's illegal in Texas to do that. Two, I think they'd rather Wal-Mart not make money off of the death of a loved one. It just seems ghoulish.
 
What is shady about this is that Walmart has no insurable interest in it's lower employees. It costs them very little if someone dies. They just hire a new person to replace them.

Now if the President of Walmart died, it may be very hard to replace him or her and there may be substantial financial loss due to their death. In that case, Walmart has a huge insurable interest, because that person is a key employee in running the company. It is typically common that companies take out large insurance policies on employees of this caliber.

It is not common and not necessary for them to take out policies on someone working as a cashier or in the automotive section or where ever. That is why Walmart is being sued for the proceeds on those life insurance policies.
 
there is absolutely NOTHING wrong with this. its just smart business. they hurt no-one, anyone who would be financially hurt by the death of someone else in a business relationship may take out life insurance.
 


<< It is not common >>



It isn't?



<< But an attorney for the Hartford Life Insurance Co. estimated that one-fourth of the Fortune 500 companies have them >>



I don't think the practice is nearly as disgusting as the lawyer digging through obituaries to drum up business.

Russ, NCNE
 


<< there is absolutely NOTHING wrong with this. its just smart business. they hurt no-one, anyone who would be financially hurt by the death of someone else in a business relationship may take out life insurance. >>



Yup. Companies do this all the time and it makes sense. They pay for training, relocation, etc., and they are only covering their possible losses.

Think about some huge companies (like wal-mart) that have thousands of employees, some of them are bound to die or get killed while they are employed by you. Why not take out these policies?? Smart if you ask me. (insured for around 100G's at work, LOL)
 


<< Wal-Mart borrowed money from the insurers to pay the premiums, which the company was able to write off as a business expense on its federal taxes. >>



Does this mean I can get life insurance on myself and claim it on my taxes, so I don't have to pay anything too, or is it another thing only the wealthy can do to keep getting more money off of us?
 
i think one of the other issues that people are missing is something that was mentioned later in the article.

if companies have these insurance policies and paying for them, that's less money they have to enhance worker safety
or other things that will benefit their living employees.
 
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