Army, Insurer in Iraq at Odds -LAT

[Rose Siding]

WASHINGTON — Besieged financial services giant American International Group Inc. repeatedly has sought to derail an effort by the Pentagon that could save taxpayers millions of dollars on reconstruction work in war zones like Afghanistan and Iraq.

For more than a year, AIG and industry allies have fought an initiative to cut the rates for workers' compensation insurance that U.S. contractors operating overseas are required to carry, according to interviews and documents obtained by the Los Angeles Times.
...
Pentagon officials said their suspicions grew after the insurance companies began charging rates as much as 30 times higher in Iraq than in developing countries.

Though workers in Iraq face a much higher risk of injury or death from violence, insurance companies do not have to pay those claims.

Under an obscure government program, the U.S. reimburses any combat-related claims — meaning that the insurance companies don't have to bear the risk. The only claims they would be liable for would be those resulting from routine workplace accidents. Thus the rates shouldn't be directly affected by the violence.

http://www.latimes.com/news/nationworld/nation/la-na-insure13jun13,0,5966469.story?coll=la-home-headlines

[denverbill]

1. I'm SHOCKED, SHOCKED I tell you.

I private company fleecing the US taxpayers on a defence contract? Unthinkable. I'm sure the Feds will get right on this.

[Rose Siding]

2. Much to do

First, various committees in both houses of Congress will have to refuse to investigate. -And Rep Conyers, bless him, will have to write more letters.

[Tempest]

3. AIG are big GOP supporters

Of the $1.4 million AIG contributed in the 2002 and 2004 election cycle, only $440,000 went to Democrats.

http://tinyurl.com/c6b52

[mbperrin]

4. Hmmm....big corp rakes in bucks, leaves taxpayers to

pay actual bills.

Nothing unusual here, folks, move along. (You surely didn't think that COMPANIES would have to actually live up to anything, did you?)