Insurance

Insurance

Evolution of Insurance

Introduction

Risks in day - to - day life is found around the world. Risks cannot be eliminated altogether. But, it can be minimised. Human life is full of risks. The routine life styles of the human kind meet risks every minute. There is a risk when a man walks on the road, travels in a bus or train or an aeroplane and when he is engaged in trade, profession or business also, there is a risk when property is destroyed by fire, flood, earth quake, etc. Thus the involvement of risk is unavoidable. Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

Insurance - a subject matter of solicitation

Insurance is a method by which we can spread over the risk. It is a way of reducing uncertainity of occurence of an event. Insurance is entirely a method of co-opearative endeavour of occurence of an event where in the loss caused by a particular risk is spread over larger section of persons.