thaluikhain said:
The Just World Fallacy, the refusal to accept that Bad Things could happen to you or yours, so anyone who has Bad Things happen to them must be to blame somehow.
I didn't know enough about logic to know that that was a logical fallacy, but in psychology we call that the fundamental attribution bias (or actor-observer bias), and it's something we humans do all the time without realizing it (some people more than others, of course). If you're interested in this sort of thing you should check it out and do some reading. Essentially it means that we are more likely to attribute others' behavior and the results thereof to their personality and abilities, while we tend to attribute our own behavior to the situation we were in at the time.
To give a fairly blatant example, if someone else gets in a car crash, it's because they're a lousy driver, but if *I* got into a car crash, it's because it was dark and the road was slick and he slammed on his breaks out of nowhere.
Best we can tell, it's used to help protect our sense of self-worth (as in your example, "it happened to them, but it couldn't happen to me!"), and I think it may also be due to our need to figure out the people around us to make them more "known quantities" as it were. But that's just conjecture on my part.