Written by Abdun Nur
Providing No fault, Comprehensive Cover with Zero Excess for a Driver, to Drive Any Car. Using a Multilateral Reciprocal Need Bond at a Fraction of the Cost of Corporate Insurance
The Concept of a Reciprocal Need Bond
A reciprocal bond seeks to create a self-contained reciprocal agreement, meaning detailed reciprocal obligations and the relief for failing to honour the self imposed behaviours, through fully stipulating interactions and reliefs for breaking those agreed interactions. (Link: Bonding Platform)
Benefits of the Car Assurance Bonding Model
- No reckless endangerment is accepted. Electric cars are completely excluded from the bond, these cars are unacceptably dangerous, a danger to life through electromagnetic pollution within the vehicle and a exceedingly high danger of fire and explosion through use, driving these vehicles is completely at the drivers risk unrelated in anyway to the assurance bond, this is because all need bonds are reciprocal, and reciprocally reckless endangerment of life is not acceptable through any bond agreement.
NO EXCESS to pay, the bond covers full cost
Work is done by carefully selected, well trusted and proven professional mechanics (no risk of price gouging or incompetence, or poor quality parts)
You simply top up the annual disbursement, paying only the bare cost proportionately each year, no profit, no fees, no taxes added
You recover your deposit and any unused disbursement when ever you wish to leave the bond
The cost of car assurance is very low, no agents fees, no seeking quotes, no being held hostage to corporate parasites, no need to divulge every detail of your life. The bond is bound to you not a legal fiction
The work is done locally by local mechanics and so benefits the local community, as resources remain local
“You” are assured directly, not the vehicle, so you can freely drive any car (to a max. value for example of £50,000) you wish, fully assured
Unlimited mileage, the number of miles travelled annually doesn’t alter the cost, excluding “commerce” if you are involved with the government Mafia with the commerce of transport, you cannot use the bond for assurance
The assurance is fully comprehensive no fault cover, no matter where you park a car, as long as the car is road worthy, this including circumstances beyond one’s control which corporate insurance would exclude, such as natural disaster or unrelated to any action of the bondsman that suffers intentional damage of primary vehicle
Once you are assured for 18 years, without any accident claim, you do not pay to top up your assurance annually, it stays at full value without any annual disbursement payment, until you make a claim
Fire and theft assurance for each specified car adds to the cost of the cover per car.
Half of accident claims would be the other drives fault, the cost of these claims would be recovered from their corporate insurance and used to offset any future claims made against bondsmen at fault. Repairs done funded by corporate insurance would be done at corporate surveyors rates. All repairs outside the bond, when the bondsman caused the accident would be repaired by the bond where possible.
Repairs for wear and tear of a named primary vehicle could be done by the cooperative servicing the need assurance bond, if they were able to fit you in (accident repairs being the priority), allowing a very high quality of work at a low cost.
To be a part of the assurance “need” bond you would have to identify your primary vehicle or vehicles, and would be bound to adhere to the bond agreement.
Requirements of the Bond – 1: TYRES
One of the leading causes of death, injury and road accident is tyre blow out. Data shows that tyre blowouts occur in 6.5 percent of cars (1,787,500 blowouts in UK annually) that comprise more than 80 percent the vehicles involved in crashes.
The cooperative bondsmen would buy in bulk the best tyres on the market at bulk discount, and fit new tyres at cost plus labour as part of the bond, this means the average cost of 4 new tyres would be greatly reduced, as much as 50% – 70% less. Ideally as the bonding model expands, tyres could be established through a local need bond and made through an attached cooperative bond, providing the best quality tyres for several local bonds, at a fraction of the price of corporate tyres.
Tyres are also the issue in winter when roads are icy, and this causes a large number of road crashes, the bond would fit winter tyres and replace normal tyres back on when the season changed, this would also be part of the bond, and would further reduce the number of injuries, deaths and accidents. The ideal time to swap your tyres is when the temperature first hits below 7 degrees Celsius (44F).
Snow tyres have wide and deep grooves. This unique tread and rubber adapt to low temperatures and offer excellent road holding in cold weather. However all-season tyre can be used, that do not require seasonal exchange, for example MICHELIN CrossClimate range.
You get 20,000 miles wear from front tyres and 40,000 miles from rear tyres safely, this means according to mileage you must replace your tyres on your elected primary vehicle as part of the bond protection, this will then reduce the overall costs of the protection, by reducing injury and death and so lowering the cost of safe driving. This can be done through each driver monitoring mileage on their primary vehicle. It would take 40 minutes to change all four tyres costing £24 in cooperative labour plus the cost of the tyres.
1,752 reported UK road deaths in 2019
25,945 serious injuries
153,158 accidents of all severities
153,158 x £19,500 = £2986 million
New legislation has been passed to reduce injury payouts, claimed to save 1 billion in claims for insurers in the future.
Presently this costs each policy holder £109, but with the new legislation that will be reduced to £73 per policy
It’s far better to reduce the death and injuries than to legislate to save the insurance corporation from paying out for injuries.
It would seem, as punctures are the leading cause of road accidents, preventing them should be the focus in reducing assurance claims, one idea is to fill tyres with a viscous gel, that is semi set within the pressurised all season tyre, which if punctured would be unaffected, changing tyres would be more difficult and may involve changing the hub itself along with the tyre, but methods could be developed, this is my own thought.
Requirements of the Bond – 2: TRACKER – IMMOBILISER- ALARM
The fire and theft element are separated from the accident claims element, allowing the bondsman to protect as many vehicles as they wish as long as they protect their vehicles according to the bond.
The bond would require verified fitting of a tracking, immobilising and alarm system, of a very high quality, into all primary cars within the bond, it is the individual that is assured to drive not the vehicle, so only the primary vehicle is covered for theft. Installation of these systems would be an element of the cooperative bond garage, attached to the need bond, the monitoring of the tracking systems would be through the bond garage directly, this service in the corporate model normally costs between £8 – £100 a month in monitoring fees, but, in contrast would be part of the annual cost of the assurance bond.
Requirements of the Bond – 3: FRAUD – INTOXICATION – COMPETENCY
If fraud is proven the bondsman is banned from the bonding system forever, their deposit refunded, and they can go back to the corporate insurance.
If a bondsman drives and has an accident while intentionally intoxicated, they’re banned from the bonding system forever, their deposit refunded, and they can go back to the corporate insurance. A blood alcohol content (BAC) level of 0.08 percent is considered impaired, however this intoxication would likely only become know through an accident.
You must be competent (not related to license) to drive the vehicle under your control.
Requirements of the Bond – 4: REPAIRS – ROAD WORTHINESS
All claimed accident repairs must be completed by the cooperative attached to the need bond. A courtesy car may be available until the repairs were complete.
Any vehicle you drive must be road worthy. If you have an accident and it is proven the vehicle was not road worthy, the cost of repair is paid directly by the bondsman involved (claimant).
Requirements of the Bond – 5: PROTECTION – IDENTIFICATION
If people fear drivers would attempt to escape accountability for accidents, but in this model, there is no fault, meaning your vehicle would be repaired as part of the bond no matter who was at fault, or even if you did not know who caused the damage.
You cannot use an open display of a unique number, which would allow those around you to identify you for any action that causes injury or loss, which is the present model, e.g registration plates. However, someone can, if they find a car of the same model, copy a registration plate and drive around freely. Registration plates require positive enforcement, so requires surveillance and policing.
If you carry a small device, attached to your keys for example, that chronicle the time, location and bond number of any other bondsman that passes within 10 feet, this would protect you, and allow the cost of an accident to pass to the bondsman’s assurance bond and not to the bond of the not at fault driver.
If someone is not in the bond, and they fled the scene, the bond is fully comprehensive, so would cause you no loss. Fitting small front and rear cameras that record events around the vehicle, at 1080p recording uses 675 megabytes (MB), that’s 113GB a week per camera. If a 200GB SSD drive was used, the data could be cycled until it was needed at any point. This would capture the registration number of anyone involved in an accident with the bonded driver.
Cost of Car Insurance Compared to Cost of Bonded Car Assurance
31.5 million cars registered in UK
20 million households insured
number of car with insurance policies 27.5 million
1 million uninsured
3 million off road
1,500 – 1,900 annual deaths (mean=1700)
23,000 – 26,000 serious injuries annual injuries (mean=24,500)
£19,500 average injury claim
Average cost of car insurance in uk £468 per year
Number of claims 2.1 million, Total payouts £8.3 billion, 2020 (Avg. cost per claim £3,952)
Revenue taken 27.5 million policies x average cost £468 = £12,870 million
Profits 4,570 millions annually for car insurance corporations.
Each insured driver claims on average every 18 years, which would generate 1.5 million claims annually, the huge increase to 2.1 million claims is due to fraudulent injury claims and a huge increase in car theft and car fires in the UK, generating 600,000 claims over the historical average, in 2020.
Stated cost of car insurance claims £8,300 million
£8,300 – £2986 (cost of injury/death claims) = £5,314 in accident claims
Over 100,000 cars go up in flames, around 65% of these fires are started deliberately to cover criminal activity, to make a fraudulent insurance claim or as an act of vandalism.
Vehicle theft has risen over 50% in the past 5 years in the UK (DVLA) show that there were 74,769 cars stolen in the UK 2020 a 33% increase on 2019.
Thefts cost insurers £379 million in 2020
72% of stolen vehicles are never returned to their owners, and 30% of returned cars are damaged
The average value of a car in UK is £10,141
72% of 774,769 = 53,834 cars = Average pay out from insurance £7,040 (£3,100 below the average car value)
Insurers showed a 48% drop in motor insurance claims during lockdowns
Average value of claim £3,952.
Personal injury/death claims average of £19,500.
Average cost of labour for insurance work (which is inflated by the private garage) = £90 (the mechanic employed by the garage average earning £14 an hour)
Average added cost to all parts 67% (For Insurance work)
Example of a Cooperative Garage Bond
To join the “need” bond, if accepted, a new bondsman contributes £750 as a refundable deposit.
Each bondsman pays an initial disbursement to cover the accident claims of £500, which is simply topped back up annually.
You as a “need” bondsman, have proportionately paid for the infrastructure and equipment, and the value of your deposit is held within that infrastructure. There is no legal fiction holding it, it is a agreed proportionate value of the whole, detailed in the multilateral bond agreement (without legal signature) sealed and witnessed, so it is proportionately yours.
The refundable deposit is adjusted as more than the initial 2000 bondsmen join the bond, so whatever number are in the bond, they have all contributed exactly the same amount. The amount invested in infrastructure and equipment can increase as the bond grows and this too would adjust the proportionate cost of the refundable deposit also.
If 2500 are in the bond then each bondsmen contributes £600, those who joined the bond at the start and paid £750, now have a credit of £150, this can go towards paying their annual disbursement cost, or they can request ait as refund. If 5690 bondsmen had joined the bond then the deposit would be £263 each (this would be reduced by the depreciation of the infrastructure annually).
The cost to build a state of the art garage with 10 mechanic’s bays and buy equipment for two mechanic’s bays – £1,500,000 (just estimate likely much less) this cost determines the cost of the refundable deposit.
The depreciation of the infrastructure and equipment is calculated from the estimated life expectancy before it would need replacing, this depreciating value is then removed from the refundable deposit annually.
For example if the building was well built and designed to last before major updating for 50 years, and cost £750,000 to construct (£350,000 land cost – 400,000 equipment – courtesy cars – vehicles), and after 50 years the expected updating, to make it last a further 50 years, would be £300,000, then the annual depreciation would be £6,000 divided by the number of bondsmen in the bond using that garage, so if 2000 bondsmen depreciation would cost each £3 a year, equipment depreciation would be faster, so total depreciation may cost a total of £10 a year per bondsmen. The larger the number of “need” bondsmen the lower the annual cost of depreciation.
The Creation of a Symbiotic Servicing Cooperative Bond
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
Potential 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.
1 mechanic can complete Avg. 153 accident repairs a year.
Avg. 55 accident repairs per 1000 bondsmen needed annually.
With tyre rotation, car security system installation and low pressure work load – 1 mechanic per 1000 bondsmen
If general repair work is wanted in addition to assurance 3 mechanic’s bays of the 10 could be equiped, and 1.5 mechanics per 1000 bondsmen the ratio, this can easily be expanded if higher demand.
Avg. 276 people per square mile UK – within approx. 10 mile of the garage 314 miles² = 86,664 people 1 in 2.4 drive approx. 36,110 some would not be able or want to join the bond. (The radius could be increased in more rural areas) Initially maybe 3% join 1,084 bondsmen, so to begin 2 mechanics, if only 2% (722 bondsmen) joined a single mechanic would begin the cooperative. If low interest the radius could be expanded, initially a need bond would need to attract enough interest to be extablished, this is a part of the creation of any need, so until you had enough interest the bond could not be started, in this example the minimum would be enough interest to employ a single mechanic approx. 700 bondsmen.
The need bond use the refundable deposit to build and equip the garage locally, including one courtesy car per 750 bondsmen.
The annual premium 2000 x 500 = £1,000,000 the pot increases as the bond grows, when 5000 bondsmen have joined the pot would be £2,500,000, if 10,000 bondsmen had joined the pot would be £5,000,000, bonds can also be networked together to share risk.
The initial bond has a pot of £1 million to buy parts, mechanics, overheads, administration and pay injury claims and death claims, and to deal with recovery from corporate insurance when the fault was with the other driver. If the claims for the year cost £180 this would be all you paid to top up your disbursement back up to the £500.
The mechanics are carefully chosen by the need bondsmen and form an independent cooperative that utilises the infrastructure and equipment of the need bond, and are paid a base rate £35 an hour (or 2.5 X the average earning when employed in the corporate workplace). The average length of time an average drive drives between accidents is 18 years, therefore this is the base earning level of the cooperative mechanics, if through their efforts the number of accidents is reduced, through careful maintenance and advice, the mechanics would earn more, if for example the average number of accidents within the need assurance bond they serviced was 1 accident per 22 years of driving they would earn more than if the number of accidents was 1 every 18 years, because the system would calculate and pay annually according to the period each driver drove between accidents, this would be effectively an annual bonus, as annually the earnings of the mechanics would be adjusted according to their effectiveness in accident reduction.
An anarchic cooperative can have NO employees (under no circumstances), but each fully trained mechanic can have 1 apprentice, who is also part of the cooperative but earns a much smaller hourly rate, their rate increases each year as they gain more skills.
After they are trained over four years, a new bay is fully equipped, or time share is organised for existing bays, if the work load allows it, even forming additional cooperatives of up to 15 bondsmen that work in shifts. The bond can expand as more apprentices are transforming into a trained mechanic; once training is complete they pay the deposit to fully join the cooperative.
The mechanic must pay a refundable deposit to join the cooperative totalling 20% (of the value of the infrastructure and equipment) as a refundable deposits.
£750 x 2000 – £1,500,000 – 20% = £300,000 / 15 = £20,000 per bondsman (15 is the maximum number of bondsmen in any cooperative)
The £20,000 is a refundable deposit used as a guarantee for the “need” bondsmen against theft, fraud or incompetence of the cooperative bondsmen.
The cost of repairs is only the cost of labour, the cost of parts and running costs, without any added cost, no VAT, no taxes, no profit, no rental, no bank loan fees or interest.
2000 hr. = 153 car repairs = 14 hours per repair
14 X £35 = £490 per repair
Cost of 1 mechanic = 1800 hr. yr @£35 (£63,000 a year)
50% of repairs are parts saving 67% added to cost – £1,976 – 67% = £652
Average cost of repair £1,142 + running costs 10% = £1,256 (saving £2,696 of an average insurance claim in repair costs) This is just a rough estimate.
This means excluding injury and death claims, which presently average £109 per policy the cost of insurance would be £70 annually, this is without any need of an excess, however half of claims are the other parties fault and could be reclaimed, halving the cost, additionally if greater efforts were made to maintain tyres and protect the car from theft, the number of accidents, injuries and deaths would be greatly reduced, saving even more both financially and in human suffering and loss.
Not Open to the Public
This is a closed bond, therefore ONLY sealed Bondsmen needing the assurance can use the garage for their car repairs. All reciprocal bonds of every type and structure are closed bonds, and not in anyway open to the public.
This is not a private (privation – the act or state of being deprived – suffering deprivation; lacking the necessities of life, as adequate food and shelter:) agreement.
No person (the persona, the fiction masking reality) is involved in the bond agreement.
No legal name can be attached to the bond agreement, no signature (the name of persona) can be placed upon any reciprocal bond agreement.
A false declaration of truths at the outset, when joining the bond, if discovered, would ban you, and the two witnesses that sealed your reciprocal agreement. You would have your outstanding deposits and any unused disbursement returned, and would have to secure corporate insurance in the future.
The bond would not be open to all people, if you work or worked, within 10 years, for government, in any capacity, you could not join the bond.
Multiple Cooperatives Sharing the Same Infrastructure
If there was a very high demand for car repair, multiple cooperatives could be formed, (max. 15 in a cooperative), through a rotation, as many as 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 bondsman’s car repair without issue, or a bondsman 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.
This system is best organised free of all fiat currencies, using the earth-coinage closed bond advancing model. If you organise this system with fiat, then the garage administrator would be in control of very large sums of money, and so theft would be a danger, in the earth-coinage model the platform administrates the entire process, so no one is in a position to steal.
It would however (if the platforms for the earth-coinage closed bond model were not yet coded), be better to use bitcoin, this would prevent the government mafia from stealing the deposits of the bond.
Also if you use fiat, inflation would adversely effect the depreciation aspect, and would be an unknown value, while the earth-coinage model is linked to purchasing power, so is free of inflation.
The proposed software earth-coinage platform would run this kind of model ideally, accounting for the various aspects of the process, the cost of coding the software could be voluntarily added to the annual cost if people wanted a safer, more efficient structure.
There are many further advantages gained if the earth-coinage platform is created.
Added Advantages of the Earth-Coinage Platform
The “need” bond is funded by the advancing cryptocurrency, this pays for the infrastructure and equipment, the people joining the bond simply guarantee the annual cost of depreciation of that advance.
Administration of the bonds would be through a polycentric software platform, using an advancing P2P cryptocurrency, this would remove all connection with the corporate system, of both government mafias and commercial banking mafias.
Once a repair is accepted and completed, the assurance bondsman, when satisfied with the work, would acknowledge satisfaction on the system and payment for the repair is allocated to the garage cooperative bond members. Payment transfer is instantaneous at the point of the assurance bondsmen confirmation. The mechanics would be paid in the cryptocurrency no fiat would be involved. If they wanted fiat they would have to offer the cryptocurrency on the trading platform.
It may be better to develop the software before creating the assurance bond, and if this was wanted, people could contribute towards the development of the bonding platform, advancing cryptocurrency platform, trading platform, and other attached elements of the software concept.
This bonding model can be applied for any “need” required by a community, allowing the cooperative bonds to be developed to satisfy those needs. This means the need dictate the production, quality, costs, people involved, etc. This also means the wealth circulates locally and is no longer drained off to parasites, paedophiles, mass murderers and criminals as it does presently. It also means the quality of goods and services improves greatly, the earnings of those that produce the wealth jump from 5% in the corporate slavery model to 100%.