Several citizens and prominent bloggers living in Washington D.C. recently revealed a previously overlooked insurance program funded by the government. According to some motorists, some drivers who have been involved in crashes claim to be under the protection of the Maryland Auto Insurance Fund or MAIF for short. Unlike regular insurance companies, the MAIF is not that well-known. Experts say that the said program was created by state legislature way back in 1972 to insure drivers who could not afford to pay for insurance themselves.
Now, the same program is drawing criticism from some insurance providers as well as private citizens. Initially, the MAIF was intended to cater to car owners who were unable to pay for private insurance or were rejected by insurance companies for a variety of reasons. Critics of the program claim that because the MAIF was created by the state government, it is still be paying for the insurance policies of drivers who may be reckless or considered high risk policyholders by private insurance providers.
Experts point out that when the MAIF was created almost four decades ago, most of the car owners who availed of the insurance policies could not afford private insurance. Nowadays, however, critics say claim that high risk drivers rejected by insurance firms are taking advantage of the MAIF’s offers.
Some detractors also claim that because driving is a privilege and not a universal right, the state government should not fund any programs that would benefit or encourage motorists with bad driving records. They argue that by continuing to pay for insurance, the state can actually end up giving reckless drivers another chance to continue driving. With the heated debate on health insurance and universal health care still raging across the U.S., politicians and policymakers are staying clear of suggesting or drawing attention to any government-funded programs.
Representatives from the MAIF, on the other hand, say that the government agency does not receive any funding from the state government. Sources from the independent agency say that its debts can never be considered as those of the state’s. However, the lack of explanation or ample clarification from state officials in recent years have resulted in many suspicions and false accusations.
Analysts also say that the subsidization of private financial companies and the banking industry by the federal government is causing many Americans to grow wary of government-funded programs. Because of this, insurance initiatives like the MAIF are fast becoming targets by consumer advocacy groups and critics.