Insurance business has emerged as one of the prominent areas of financial services during recent times particularly in developing countries where it could not grow before globalization. The pace of growth of insurance sector has accelerated with the process of opening up of such economies to outside world Under WTO regime. Insurance performs remarkable functions by insuring the durable public and property located at different places, in view of its great significance in economic operations it has comprehensively networked itself in almost all parts of the society today
Insurance Meaning : Insurance is a social device providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all parties participating in the scheme.
Insurance Definitions : According to Encyclopedia Britannica : Insurance may be defined as a social device whereby a large group of individuals, through a system of equitable contribution, may reduce or eliminate measurable risks of economic loss common to all members of group.
According to Justice Tindall : Insurance is a contract in which a sum of money is paid to the assured in consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.
Definitions of Some Important Terms :
INSURED – Insured is a person, who seeks protection against a risk,
INSURER – Insurer is a person, who provides protection to the insured,
PREMIUM – The consideration that insured pay to insurer is called premium,
NSURANCE POLICY – The document containing terms and conditions of contract are called policy.
A Brief History of Insurance Sector in India : It is difficult to say exactly when insurance did originate; however there is evidence, which suggests that devices resembling insurance existed in old times in Babylonia and India. The Rig Veda refers to ‘Yogakshema’, which means insurance. This suggests that insurance in some form existed more than a 1000 years ago. However the evidence suggests that present form of insurance originated only in 12th century.
How to Insurance Works : People facing common risks come together and make their small contributions to a common fund. The contribution to be made by each person is determined on the assumption that while it may not be possible to tell beforehand, which person will suffer, it is possible to tell, on the basis of past experiences, how many persons, on an average may suffer losses. The following example explains the above concept of insurance.
Insurance Meaning : Insurance is a social device providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all parties participating in the scheme.
Insurance Definitions : According to Encyclopedia Britannica : Insurance may be defined as a social device whereby a large group of individuals, through a system of equitable contribution, may reduce or eliminate measurable risks of economic loss common to all members of group.
According to Justice Tindall : Insurance is a contract in which a sum of money is paid to the assured in consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.
Definitions of Some Important Terms :
INSURED – Insured is a person, who seeks protection against a risk,
INSURER – Insurer is a person, who provides protection to the insured,
PREMIUM – The consideration that insured pay to insurer is called premium,
NSURANCE POLICY – The document containing terms and conditions of contract are called policy.
A Brief History of Insurance Sector in India : It is difficult to say exactly when insurance did originate; however there is evidence, which suggests that devices resembling insurance existed in old times in Babylonia and India. The Rig Veda refers to ‘Yogakshema’, which means insurance. This suggests that insurance in some form existed more than a 1000 years ago. However the evidence suggests that present form of insurance originated only in 12th century.
How to Insurance Works : People facing common risks come together and make their small contributions to a common fund. The contribution to be made by each person is determined on the assumption that while it may not be possible to tell beforehand, which person will suffer, it is possible to tell, on the basis of past experiences, how many persons, on an average may suffer losses. The following example explains the above concept of insurance.
