Introduction to Insurance

   Introduction to Insurance


     History

• Events happening around us- Landslide,Fire,Flood,Lightning,Earthquake.
• These events are unpredictable and can cause economic loss and grief.
• Individuals ,who are affected by such events can be backed by a community,by having a system of sharing and mutual support.
• Idea of Insurance took place thousands of year ago but the business came into existence since 3000 B.C.
• Insurance through the ages:-Babylonian traders,Traders from Baruch and Surat,Greeks,Inhabitants of Rhodes,Chinese Traders.
• Babylonian Traders:-Bottomry loans prevailed at that time.Under this,Loan against security of the ship or its goods had to be repaid only when ship arrived safely to its destination.
• Traders from Baruch and Surat:-Similar practice as of babylonian traders prevailed
• Greeks:-Benevolent societies in the 7th century A.D. was setup to take care of the funeral and families.
• Inhabitants of Rhodes:-Owners of the goods,who lost nothing during the distress would bear the losses in some proportion.
• Chinese Traders:-They used to segregate the goods into different boats,In this way,they used to distribute the loss.Therefore,if any of the boat suffers ill fate,the loss will be minimal.