Written by Abdun Nur
(If you wish to communicate about this article with the author email: firstname.lastname@example.org)
Providing No fault, Comprehensive Cover with Zero Excess for a Driver, to Drive Any Car. Using a Reciprocal Bond at a Fraction of the Cost of Corporate Insurance
Insurance is a huge business draining billions from the pockets of the economic slaves. In the USA alone insurance collectively costs $1.2 trillion ($1,200,000,000,000) a year (that’s $3667 per capita annually) these corrupt and greedy insurance companies bankrupt around 500,000 people every year in the USA alone.
The greed of the corporations offering insurance has no bounds, as they demand ever greater premiums for diminishing cover, commonly within State granted monopolies.
They also demand insurance for each car driven by each driver, and demands more for the number of miles driven, this is simply imposed theft.
The alternative is a reciprocal multilateral need bond, bonds without prejudice form true witnessed agreements and are “not” in anyway a contract. These are agreements between free souls, as opposed to “contract” which is agreement between constructed legal fictions created specifically to allows one-sided agreement, as contract is nonreciprocal agreement.
A reciprocal (balanced in exchange) bond is without prejudice (without fore-judgment and bias, all contract is inherently with extreme prejudice, as the slave law model imposes bias and fore-judgement throughout its entire structure), it is exclusively between those who exist physically with the potential (but not always the ability) to reason; your peers.
A contract is with prejudice, it is exclusively between constructed legal fictions and is incommensurate (poorly balanced or matched in quantity, value and measure), commonly allowing a one sided extraction disproportionate in exchange, this model for example allows agents of insurance corporations to impose unreasonable conditions, penalties, restrictions, premiums, excess payments and loopholes that can be used to avoid honouring their reasonable obligations, and this bias is only possible because they hold a State mafia granted monopoly.
A reciprocal bond requires a “witnessed seal”, usually an affixed thumb print (but any physical record would do, that could be replicated for verification without deception) and this seal can be referenced through autograph (not legal slave name).
A contract requires offer and acceptance, this allows the agents of corporation both in commerce, and in governing the slaves, the ability to impose contract without either witness or seal.
A bond stipulates the mutual advantages and the relief (the predetermined solution allowing alleviation of anxiety, pain, distress, wrongs etc.), if you break the agreement formed within the bond, with all relief agreed to in advance of doing the wrong, in front of witnesses, you could not in anyway argue the relief was too sever or unreasonable.
A false declaration of truths at the outset of joining the bond, before you could form any other lesser bond such as the assurance bonds, would exclude the deceptive bondsman from the assurance bond, and all other bonds, and they would be liable for all outstanding advances and all guarantees would be void; that same forfeiture would also be imposed on those who stood as witnesses, banning them from either joining the assurance bond, or any bonds at any future point, or from continuing to be a bondsmen in the bond, this gives weight to the act of witness.
The Concept of a Reciprocal Bond
A reciprocal bond seeks to create a self-contained agreement, meaning detailed reciprocal obligations and the relief for failing to honour those self imposed and binding particulars, through fully stipulating interactions and reliefs for breaking those agreed interactions.
For an assurance bond there are two basic costs:
- The guarantee to pay the cost of depreciation of the infrastructure and equipment proportionately as an annual cost: this costs nothing at the outset but gives guarantee to the advance needed to form the infrastructure, and this advance is then repaid over a predetermined number of years, the cost of depreciation is dependent on the life expectancy of the item or structure, this is a proportionately shared cost, the larger the need bond, the less the annual infrastructure cost per bondsman.
- The annual disbursement (Something expended to obtain desired result:): to pay the cost of the assurance, which begins with a payment slightly higher than the estimated annual cost, that is then topped back up to the original value annually or monthly if preferred, as the cost of the assurance is unknown until the year or month is complete, and so an unknown variable.
The advantage of this bonding model:
- The driver not the car or cars are protected, no matter what vehicle, within a predetermined maximum value, irrelevant of the number of miles traveled annually, outside of transport based trade, which would require a greater risk contribution, as agreed within the assurance bond, or a separate assurance bond tailored for transport trade.
- The cooperative bond formed by the assurance bond is fully funded by the advancing platform cryptocurrency, the assurance bond members simple repay that advance by annually covering the cost of depreciation, this removes the added burden of interest and fee bearing bank debts which would in the corporate model greatly inflate the costs.
- The mechanics within the cooperative bond are paid (2020) $52 (£40) an hour (compared to $17.50 (£13.50) average employed as a waged slave hourly rate) almost 3 times the rate so attracting the best mechanics. This would be paid in the equivalent value of earthcoinage from the platform, which could be tradable in any fiat on the fiat trading platform, which would be attached.
- Mechanics are selected by the bond members through the consensus of those members that are interested in taking an active part in the cooperative bonds creation, and new mechanics can be tested to find the highest quality labour possible, ending the guesswork of quality, price gouging, fraud, incompetence and broken trusts of profit driven garages.
- This is a closed bond therefore ONLY Bondmen of the assurance can use the garage for their car repairs, if the work load imposed by the assurance bond of accident repair, does not deplete all the available time, allowing the assurance bondsmen a far cheaper, more reliable and higher quality garage repair service “for their car”. All reciprocal bonds of every type and structure are closed bonds, and not in anyway open to the public.
- Each mechanic can take on an apprentice funded at a lower hourly rate for their labours, reducing accident repair costs within the bond slightly, once the apprentice is fully qualified and competent, they can then either join an existing cooperative bond if a member leaves, expand an existing cooperative up to a maximum of 16 qualified mechanics, or as the assurance bonds expand join a new cooperative bond if they wish, if they wanted to remain within the bonding structure.
- The mechanics at some point may wish to leave or may die, and they would at such a point recover their proportionate share of the 20% refundable deposit of the infrastructure cost, this would be paid to them or their heirs when a replacement is determined, as the replacement mechanic would pay the deposit, and so refund the departing mechanic.
- The cooperative mechanics bond gives protection to the parent need bondsmen by paying a refundable deposit of 20% of the value of all infrastructure and equipment used by the mechanics cooperative. This 20% value is held in virtual escrow on the advancing cryptocurrency platform, and is used to cover the cost of theft, fraud, or the dissolution of the cooperative and the formation of a replacement if the cooperative is proven to be incompetent, unreliable or untrustworthy. This deposit is fully refundable when a mechanic leaves the cooperative bond if unused.
- There is no unworked time chargeable within the bond for breaks or holidays, only labours that bear fruit can be demanded for reciprocal exchange.
- The cooperative bond can share resources provided by the need bond, with many cooperative mechanics bonds, functioning independently within the same infrastructure and with the same resources, through a shared time model, each group allocated set working hours as they mutually agree, this would reduce the deposits required of the individual mechanic as it would reduce proportionately the burden of the 20% deposit of the value of infrastructure.
- For example four cooperative bonds could each work 42 hours a week through a rotation, five bonds could work 34 hours a week, if each cooperative worked at separate times. As it is time based, it would not matter which cooperative bondsmen worked on a car, only the hours worked, so one bondsmen could continue the work of the previous bondsmen car repair without issue or a bondsmen could work more hours beyond the minimum of the cooperative, and if the garage was in use 24 hours a day repairs would be completed very quickly. This would also allow mutually agreed flexible hours.
Considering the True Costs of Car Assurance (All values in US.Dollar)
During the 2016 calendar year in New Zealand there were:
- 286 fatal road crashes (1 in 13,636 ) 58% did not involve another vehicle 121 claimed + 42 passengers or pedestrians = 163 (1 in 23,926 drivers) average cost $1,130,000
- 9,682 injury crashes (1 in 403—24.8 per 10,000)
- 328 deaths
- 12,456 people injured (1 in 313) average claim $15,400 (disability claim $61,600)
837 vehicles per 1000 / 5 million population = 4,185,000 vehicles / 90.1% are insured = 3,770,685 insured vehicles
163 X 1,130,000 = 184,190,000 + 12,456 X 15,400 = 191,822,400 combined = 376,012,400 / number of insured vehicles 3,770,685 = cost of injury and death claims $99.72 NZD per insured driver
Average annual cost of accident claim $3290
In the USA the average shared cost of car insurance claims was $935.80 per insured driver, while the average insurance premium being $1,621 to $2,611 depending on which source you accept, this reflects the fraud inherent in the American corporate structure and contrasts strongly with the new Zealand statistics.
In America with 215 million insured drivers (327.2 million population), there are 40,000 deaths on the roads, which is 1 per 5,375 Ins. drivers – $1,130,000 / 5,375 = $210
Average Time Between Insurance Claimed Accidents is 18 Years
Direct cost paid by Insurance claims annually $229 NZD (163 USD) ( this figure is the average accident claim cost $4,626 NZD ($3,290 USD) / 18 years of driving after $500 NZD excess is factored in, insurance demands additional $750 excess for under 25s – so if a driver under 25 crashed your car the total excess would be $1250 excess) (N.Z Gov. cover costs of medical reducing the cost of premiums for NZ)
Average cost of garage labour for insurance repair $93
Average cost of garage labour for none insurance repair $50
Average proportion of bill that covers labour 50%
Average mark up added by garage for parts 67%
True cost of labour
$3290 / 2 = cost of labour $1645 / 93 = 17.69 hrs
17.69 hr x $50 = $884
$1645 cost of materials reduced 67% = $543
True cost of repair $884 + $543 = $1427
Each mechanic can repair 100 cars a year (1 mechanic costs $88,400 USD working 34 hours per week – 80 mechanics cost $7,072,000 allowing 16 mechanics to work 24 hours a day every day of the year repairing a total of 8000 cars, each repair costing $884 in labour. The maximum number of parent cooperative bondsmen that could be given service by the garage would be 144,000)
With a full bond of 144,000 bondsmen the true insurance cost as a shared burden per insured driver would be $11,416,000 = $80 plus administration costs.
The cost of Establishing the Infrastructure for a Garage
Diagnostic equipment $10,000 – Brake lathe $14,000 – Jacks and jack stands $2000 – Mechanic tools $15,000 – Vehicle lifts $4000 each
Each working bay is 4m x 10m (2 car bays)
Average cost $216 m2
Average cost $250,000 – 1 million per 1 acre commercial land with permission to build in present usury fraud.
Ten double bay garage with storage, toilets, office and parking
Each mechanic can service a max. 1800 need bond members for accident repair
16 double bays (16 mechanics per cooperative bond, X 5 cooperative bonds within the same shared infrastructure = max. 144,000 bondsmen in the need assurance bond.
Cost of construction of garage @ $50 per foot = $1 million + car park $250,000 + $1 million land cost + $1 million equipment costs + $250,000 courtesy cars = $3,500,000
The need bondmen guarantee the cost of depreciation of the infrastructure and equipment in order to join the bond, this is a proportionately shared annual cost. The main structure would last a minimum of 100 years, longer if carefully designed and constructed, but improvements, expansion, new technologies etc. can be embodied into the original advance periodically, and be repaid correspondingly through depreciation.
Each mechanic bondsmen must pay, or be able to gain an external guarantee for their proportionate share of the 20% of the total costs of infrastructure, which in the example cost – $700,000 for the large 16 bay garage, so proportionately costs each bondsmen mechanic of a single 16 bondsmen bond $43,750, if 5 cooperative bonds shared the same infrastructure, the share per bondsman (totaling 80) would be $8,750 refundable deposit.
If the bond began with a single mechanic cooperative of 16 (16 being the max. size allowable for any cooperative), and a second bond was created later to share the infrastructure, the refundable deposits of the new bondsmen would reimburse the existing bondsmen, resulting in all bondsmen proportionately having paid the same amount towards the 20% security.
A full bond may not be created immediately, initial members would temporarily pay a higher refundable deposit, but as long as they could secure an external guarantee for the advancing platform, they could repay that advance over a predetermined period of time. This advance would adjust as the cooperative grew, or expanded with additional cooperatives sharing infrastructure.
If the number of drivers locally is low, and just a small garage was needed, a single mechanic can service a parent bond of 1800 bondsmen. In theory only half the claims would be serviced by the bond as the fault would half the time be with the other driver, therefore their insurance would fund the repairs, this means the garage would have plenty of time to provide general mechanical services for vehicle maintenance exclusively for the parent bondmen. However in the example I have ignored the fault factor.
There is an economy with scale and a large garage, so a small garage would cost more to establish relatively. The guarantee of depreciation, incumbent on the need bondsmen annually, would be marginally higher.
If we estimate the cost of land at $250,000, the cost of car park at $25,000, the cost of construction at $100,000, the cost of equipment at $125,000, the cost of vehicles $40,000 = $500,000
Once the bond had a achieved the minimum up take to initiate the service bond, those members would guarantee the depreciation to form the bond, for a single mechanic that would be 450 bondsmen that would require around $12 a year to cover depreciation.
The mechanic bondsmen would have to guarantee a 20% refundable deposit of $100,000, this could be provided as an advance to the single mechanic if they could establish an external guarantee on the advancing platform. Once an advance was secured they could repay the advance over 20 years, costing $5000 annually. A single bay garage could have as many as 5 mechanic bondsmen sharing the infrastructure increasing the maximum parent bondsmen to 9000, this would reduce the guaranteed refundable deposit for both mechanic bondsmen and parent bondsmen proportionately.
All stock of parts and consumable products used to repair cars are paid for through advance from the platform. When they are used, the bare cost refunds the advance.
Imposed municipal costs, if the government mafia system is threatening violence if their extortion is not paid, would be a proportionately shared cost of the need bondsmen.
A assurance bond for damage and theft of stock, another assurance bond for storm, fire, flood or earthquake damage of infrastructure, would be created or the joining of an existing bond on the bonding platform, this would be a globally open bond, where anyone within the closed bond could join the assurance bond, as such a bond is not effected by location.
Symbiotic cooperative bonds can be created by the need bond, for example a cafe attached to the garage exclusively for the use of bondsmen, or car valeting, tyre replacement, etc.
The first bond would be the most difficult to create, especially without the creation of the advancing cryptocurrency platform software being in place.
Another symbiotic element of the auto repair cooperative could be car rental, presently car rental is exceedingly expensive, riddled with fraud and theft and imposed as a virtual monopoly. Linking a car rental to the assurance bond would provide both short term courtesy cars while repairs are carried out, and allow bondsmen the ability to rent cars at the daily cost of depreciation of the vehicle, and the cost of maintenance calculated for the useful life of the vehicle and divided into a daily amount, the car is already assured for accident, fire or theft as the car assurance need bond is for the driver not the vehicle.
Courtesy car $25,000 5 year use depreciation after 5 year 50% annual cost replacement $2500, this means the bare cost is $7 plus 10% to cover costs of maintenance, the cars are courtesy cars for the assurance bond, so any days the car is idol is paid by that need.
Vehicle theft is approx. 230 per 100,000 vehicles annually, on average 46% are recovered, so 125 per 100,000 are replaced, as the concept grows the procurement bond sourcing parts could also buy cars both new and seconded hand to supply demands of the parent bond.
An legal administrator could be part of the bond, or with many bonds could be a symbiotic cooperative attached bond, dealing with the corrupt legal system, seeking reimbursement from corporate insurance companies for the cost of repairs from at fault driver outside the bond, etc.
Accidental death claim buffer $53 (An assurance bond (Life Insurance) can be created to share the risk of death or injury which could be linked to the car assurance bond. Further an assurance bond could be linked providing true health care free of allopathic medicine, further assurance bonds can be created around these additional bonds, forming a complete network of protection)
The Bondsmen may wish to take age and experience,as well as track record of driving into account, and adjust the shared cost according
1-5 year of driving, highest risk of accident accounting for 13 percent of all licensed drivers, cause 43 percent of all two-car accidents.
1st year driving present 7 X risk – additional 700% proportionate risk (ex. If annual premium is $80 basic 1st year driver pays x 7 = $560
2nd year driving present 4 X risk – additional 400% proportionate risk
3rd year driving present 3 X risk – additional 300% proportionate risk
4th year driving x 2 X risk – additional 200% proportionate risk
5th year driving x 1 risk – additional 100% proportionate risk
6th year onward basic risk of accident
If you have a claim in first 5 years you start again as 1st year driver plus additional accident claim percentage added from the date of claim.
Proportionate risk within the present 18 year period of driving
1 Accident claimed within 18 years no change in basic cost
2 Accidents claimed within 18 years proportion increase 10%
3 Accidents claimed within 18 years proportion increase 55%
4 Accidents claimed within 18 years proportion increase 300%
5 Accidents claimed within 18 years proportion increase 1650%
6 Accidents claimed within 18 years proportion increase 9000%
7 Accidents claimed within 18 years excluded from the bond (deposit refunded only)
19 year of driving without any claims proportionate decrease of 10%
20 year of driving without any claims proportionate decrease of 25%
21 year of driving without any claims proportionate decrease of 40%
22 year of driving without any claims proportionate decrease of 55%
23 year of driving without any claims proportionate decrease of 70%
24 year of driving without any claims proportionate decrease of 85%
25 year of driving without any claims free cover in perpetuity by the bond until you have an accident
Another factor in determining the annual contribution is the drivers vehicle value (I believe this is unimportant, as any driver could have an accident with a vehicle of extreme value, or a vehicle of extreme value could have an accident with an old wreck, but that would be determined by the consensus of the need bondsmen that form the initiating need bond on the platform), driven as a value risk, i.e the maximum value of the car, the base maximum value would be set at the average cost of a new car, presently $55,000, allowing them to drive any vehicle with that or a lesser value, but to drive any vehicle with a value greater than this would proportionately increase you annual contribution.
If you wanted $110,000 vehicle value protection it would double the annual contribution for example.
Each additional $1000 vehicle value protection would increase the contribution by around 2% if you did drive a vehicle worth more than the basic value while having only declared the basic value, this would incur a penalty contribution directly towards the cost of all repair for the value of all parts above the average expected part cost.
The final requirement would be that any vehicle driven is road worthy, to knowingly drive a vehicle that is not road worthy (i.e a contributing factor of the accident) would not be covered in event of an accident or would incur additional contributions from the bondsmen.
The bondsmen of the need bond may not want to include the assurance for commercial protection, i.e taxi driving, delivery driving, transportation of commercial goods, so that would require a separate bond for those needing that sort of protection, unless the consensus of the bond agreed that was no issue.
Cooperative bondmen mechanics would see the advantages in promoting the assurance bond to increase the attached number of assurance bondsmen and ultimately achieve full capacity for the garage.
A 16 double bay garage could serve almost a 100+ mechanics and apprentices, if in rotation 24 hours 7 days a week.
Using the advancing cryptocurrency to spread the cost of unforeseen disasters, let say a small bond of 5000 bondsmen suffer a fatal accident claim at a cost of $1,130,000 which collectively imposes a burden of $226 per bondsmen, the loss could be advanced by the platform and spread over 10 years reducing the cost per year to $22.60, as long as the bondsmen accept and establish an external guarantee for that advance.
Administration of the bonds would ideally be through a polycentric software platform, and ideally using an advancing P2P cryptocurrency, as I have described on the website, this would remove all connection with the corporate system, of both government mafias and commercial mafias.
Once a repair is accepted and completed, the assurance bondsmen once fully satisfied with the work would digitally autographs (voice scan and password) proof of completion on the platform and payment for the repair is allocated to the garage cooperative bond members. Payment transfer is instantaneous at the point of assurance bondsmen confirmation.
If these bonds were developed without the software then an administrator would be required until the platform was built. Or people could contribute towards the development of the software platform in advance of creating the bonds.
To Contribute towards the development of the bonding platform, advancing cryptocurrency, and other attached elements of the software concept, is a free choice, working towards the development of new bonds and software, to expand the concept and spread the anarchic alternatives to capital monopolies.
This bonding model can be applied for any concept required by a community requiring services.