History of General Insurance, Reform in the sector, General Insurance Products, Non –Life Insurance companies and IRDA
Nov 29, 2009 General Info
1) History of Insurance Business
This was similar to the system of insurance known as bottomry which existed in Phoenicia in 1200 B.C.In this system, backers loaned money to merchants to finance voyages. Merchants offered their ships (the hull was known as the ship’s ‘bottom’) as collateral for such loans. When a trip succeeded, the merchant would pay the trip’s backer the original loan plus interest, the equivalent of a premium. If a ship went down on its voyage, the trip’s backer would cancel the merchant’s loan. The Greeks and Romans developed the earliest systems of life insurance. They formed societies which paid dues that went toward paying for the burial of members. Sometimes these societies also paid for the living expenses of deceased members’ families. During the Middle Ages (5th to 15th centuries A.D.), workers joined together in craft. Many guilds, particularly in England and Italy, provided benefits to workers and their families in the event of illness or death.
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Tags: 17th century england, babylonia, babylonian king, backer, backers, business insurance, code of hammurabi, coffee house, corporate seal, deceased members, edward lloyd, greeks and romans, guarantee business, insurance business, king hammurabi, living expenses, marine insurance, perpetual succession, phoenicia, ship owners