Life Insurance
Chapter-1 Industry Profile * History of Insurance * Types of Insurance * Life Insurance * Non Life Insurance | * Development of Life Insurance in India * Development of Life Insurance in Rural India * IRDA (Insurance Regulatory Development Authority) * Advantage of Life Insurance * Limitation of Life Insurance |
The History of Insurance
Although insurance may have been used by the Babylonians, the Greeks and the Romans, insurance in the modern sense originated in the Mediterranean during the 13th or 14th century. The earliest reference to insurance which have so far been traced appear in the accounts of North Italian merchant-bankers who dominated the international trade of Europ at that time. Marine insurance is the oldest form of insurance (1347), followed by life insurance some 300 years later and fire insurance (1666). Insurance in these fields followed the pattern that had been established in England.
Socio – Economic Significance of Insurance: The primary function of insurance is to spread the financial losses of insured members over the whole of the insuring community, by compensating the unfortunate few from the funds built up from the contributions of all, including fortunate many who escape losses. Besides, the practice of insurance has many secondary or subsidiary functions which contribute to the welfare of the individual or society. It tends more and more to transform our modern social order, fosters private and public interests, individual prudence, acts as an accelerator and as stabilizer of economic growth. Insurance has attained so great a popularity and importance these days that it has now become almost a “home – word.” The socio – economic significance of insurance has been well realized all over the world and it will be exaggeration to say that individual world without insurance is like a car without shock absorber. A father with a large family to support rests easy
The History of Insurance
Although insurance may have been used by the Babylonians, the Greeks and the Romans, insurance in the modern sense originated in the Mediterranean during the 13th or 14th century. The earliest reference to insurance which have so far been traced appear in the accounts of North Italian merchant-bankers who dominated the international trade of Europ at that time. Marine insurance is the oldest form of insurance (1347), followed by life insurance some 300 years later and fire insurance (1666). Insurance in these fields followed the pattern that had been established in England.
Socio – Economic Significance of Insurance: The primary function of insurance is to spread the financial losses of insured members over the whole of the insuring community, by compensating the unfortunate few from the funds built up from the contributions of all, including fortunate many who escape losses. Besides, the practice of insurance has many secondary or subsidiary functions which contribute to the welfare of the individual or society. It tends more and more to transform our modern social order, fosters private and public interests, individual prudence, acts as an accelerator and as stabilizer of economic growth. Insurance has attained so great a popularity and importance these days that it has now become almost a “home – word.” The socio – economic significance of insurance has been well realized all over the world and it will be exaggeration to say that individual world without insurance is like a car without shock absorber. A father with a large family to support rests easy