June 14, 2009

AIG: Arrogance, Incompetence and Greed, Indeed

I used to work for a company called Travel Guard International, based in Stevens Point, Wisconsin. It’s a travel insurance company that protects travelers from most of the things that go wrong on a trip. Cancellations due to illness or injury, trip interruptions due to inclement weather, baggage loss due to airline incompetence, etc. Many readers have probably purchased this insurance.

The job was wonderful for the first few years. But when AIG bought Travel Guard, things were quite different. Management was quite different.

The merger brought many changes and problems and ultimately I’d had enough. I was no longer an employee of a small town company with a national and international client base. I became an AIG employee and I hated it.

There are many other reasons why I quit, but some of them are too private to share and I really don’t want to rehash it three years later. Not only that, they do sell a great product. I use it whenever I fly. It’s just too bad that the management, well… sucks.

After AIG received bailout money from that fabulous government we have, Travel Guard dropped the AIG name. I’m think it was because Travel Guard CEO (and original owner of the company), John Noel, was embarrassed by the big corporation’s schemes and bad dealings. Of course I’m merely speculating because the local newspaper reported that PR exec Dan McGinnity stated the Travel Guard name sold more insurance than the AIG brand.

Go figure. AIG has a bad name? Insert sarcasm here.

When I read that the AIG company is refusing to pay claims to the passengers of US Airways Flight 1549, I wasn’t at all surprised. Instead I was furious.

[But] aviation liability insurance is different. It is activated by a finding of negligence on the part of an airline. If there is no negligence, then arguably there is no liability, and no obligation to pay claims.That poses a problem for the passengers of US Airways Flight 1549. They suffered real losses and injuries, but they are widely perceived as having been saved from sudden, violent death by their heroic and quick-thinking flight crew, led by Capt. Chesley B. Sullenberger.

While I’m sure the passengers of the flight are grateful to Capt. Sullenberger for saving their lives, they still suffered many injuries and inconveniences. They lost luggage and laptops and other valuables that, yes, can be replaced, and should be replaced by the airline’s insurance company.

When I worked with claims at Travel Guard, the company insured some of these items at face value minus depreciation. I don’t think the passengers are asking for too much by requesting reimbursement for medical expenses and compensation for lost or damaged luggage and electronic items.

AIG needs to belly up to the bar of responsibility and buy a damn drink. They’ve got government money they so desperately needed (again, sarcasm) to stay afloat and pay outstanding claims (or maybe it was to pay all those billionaire salaries?). Now they’re going to bulk and screw over the very people paying for that damn bailout?

I’m so mad I could spit nails. Thank God, I don’t work for that company any longer.