Insurance Basics

Insurance (Introduction)

Insurance is a way to avoid financial loss. It is a type of risk management, mainly used to avoid the risk of an emergency or uncertain loss.

Breif:

A company that provides insurance is known as an insurance company, insurance company, insurance carrier or underwriter. The person or organization that buys the insurance is known as the insurer. The insurance transaction involves assuming a guaranteed and well-known relatively small loss in the form of a payment to the insurance company in return for a promise to compensate the insured in the event of a cord loss to the insured. The loss may or may not be financial, but it must be financially minimal, and usually involves something that includes the insured interest through the insured property, ownership, or pre-existing relationship.

              The insurer receives an agreement, called an insurance policy, which details the terms and conditions under which the insurer will compensate the insurer. The amount charged by the insurance company for the coverage offered in the insurance policy is called premium. If the insured experiences a loss that is likely to be covered by the insurance policy, the insured submits a claim to the insurer for processing by the insurer. The insurance company can protect itself from the risk of taking insurance diseases, under which another insurance company agrees to take some risks, especially if the primary insurance company considers the risk to be too high.

History

Early Methods of insurance:

          Methods of transmitting or distributing danger were practiced by Chinese and Babylonian merchants until the third and second centuries BC, respectively. [1] Chinese merchants traveling on the treacherous River Rapids divided their ship into several ships to limit the damage caused by a single shipwreck. The inhabitants of Babylon developed a system that was enshrined in the famous Code of Hammurabi, c. 1750 BC, and early Mediterranean shipping merchants followed. If a merchant receives a loan to finance his shipment, he will pay the lender an additional amount in exchange for guaranteeing the cancellation of the loan, if the ship is stolen, or lost at sea. Get it

Modern Methods of Insurance

          Property insurance, as we know it, can be traced back to the Great London Fire, which consumed more than 13,000 homes in 1666. The devastating effects of the fire turned the development of insurance into an "instantaneous one from the point of view of convenience", a change of opinion reflected in a site for the Insurance Office in its new plan for London in 1667. Was added to the Insurance Office. Numerous fire insurance schemes did not work, but in 1681, economist Nicholas Barbin and eleven colleagues set up the first fire insurance company, the "Insurance Office for the Home", behind the Royal Exchange to insure bricks. And Frame Homes. Initially, 5,000 homes were insured through its insurance office. [6]

         At the same time, the first insurance plans for writing business plans became available. By the end of the seventeenth century, the demand for maritime insurance had led to the growth of London as a center of commerce. In the late 1680s, Edward Lloyd opened a coffee house, which became an important place for parties involved in the shipping industry and for those interested in cargo and ship insurance, to write such projects. There were also aspirants. These informal beginnings marked the beginning of the insurance market Lloyd's London and a number of related shipping and insurance businesses. 

^{Starting of Modern Insurance System}

            First life insurance policies were introduced in the early 18th century. The first company to offer life insurance was the Amexable Society for a Premium Insurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen. [8] [9] On the same principle, Edward Roy Morris founded the Society for Equitable Assurance on Life and Surveillance in 1762.

            It was the world's first mutual insurance company and based its mortality rate on "Scientific Insurance Practice and Development Framework" and "Modern Life Assurance Foundation which later became the basis of all life insurance schemes". Received age based premium. [10]

          "Accident insurance" became available in the late 19th century. [11] The first company to offer accident insurance was the Railway Passengers Insurance Company, formed in England in 1848, which insured against increasing deaths in railway system positions.

      By the end of the 19th century, governments were launching national insurance programs against disease and aging. Germany established a tradition of welfare programs in Prussia and Saxony that began in the 1840s. In the 1880s, Chancellor Otto von Bismarck introduced old age pensions, accident insurance and medical care, which established the German welfare state. [12] [13]

        The Liberal government in Britain enacted more extensive legislation in the National Insurance Act of 1911. It provided the British working class with the first insurance co-insurance system against disease and unemployment. [14] The system was greatly expanded after World War II under the influence of the Beverage Report, to create the first modern welfare state. [12] [15]