EVOLUTION OF INSURANCE
1. LIFE INSURANCE
• Presence of some type of protection similar to present life insurance system since ages.
• Concept of insurance evolved from concept of loss sharing – from Aryans to Mediterranean merchants to Sri Lanka and Egypt.
• Manu and Yajna Valkya – Hindu scriptures credited with insurance thought
• Also seen in writings in Rig Veda, Greek and Syrian scripts.
• Concept of insurance emerged in England in 16th century – Richard Mortin issued the first policy on William Gybbon’s life in the year 1536.
• Two companies named Hand in Hand Company and The Mercer’s Company came into existence in 1696 and 1698 respectively.
• Later, the English parliament passed an act which allowed life insurance companies to be set up.
• In India, modern concept of insurance came into being with the advent of the East India Company in 18th century.
• First foreign company to have started business of insurance in India was the Oriental Company in 1818.
• In 1823 – Bombay Life & in 1829 – Madras Equitable Company came into existence.
• WW-1 and WW-2 gave a boost to the business of life insurance.
• Government took steps to regulate the business of life insurance and ultimately nationalized the business of life insurance in India. It set up the Life Insurance Corporation (LIC) of India in 1956.
• Government now has allowed many private firms into the field of life insurance.
• E.g.: HDFC Standard Life Insurance Co. Ltd., Max-New York Life Insurance Co. Ltd., ICICI Prudential Life Insurance Co. Ltd. Etc.
2. MARINE INSURANCE
• Oldest form of insurance.
• Travelers by sea and land were exposed to risk of losing their vessels and merchandise due to piracy on open seas.
• Other risks existed such as capture by enemy ships, sinking in deep waters, winds and natural elements.
• The risk to owners of such ships was enormous and therefore to safeguard their interests,...