Types and Evolution of insurance in India

What is insurance - 

          Insurance is a contract between two parties. Here one party is insured and another party is the insurer. Insurance provides various advantages to the various field. The elementary purpose of insurance is to provide protection against future risk, accident, and uncertainty.

 Definition of Insurance - 

Ghosh and Agarwal - 

   According to Ghosh and Agarwal," Insurance is a Co-operative form of distributing a certain risk over a group of persons who are exposed to it"

John Megi -

   According to John Megi, "Insurance is a plan wherein persons collectively share the losses of risk"

Justice Tindall - 


    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."
          

Types and Evolution of insurance in India - 

 There are following types of insurance in India


1.  Life Insurance

2.  General insurance/ Non-Life Insurance

   a). Marine insurance

   b). Fire insurance

   c). Motor vehicle insurance

  d). Miscellaneous insurance

3.  Reinsurance


1.  Life Insurance - 


           Life Insurance is an insurance which guarantees a specific from its sum of money to a designated beneficiary upon the death of the insured,  or to the insured if he survives the term of the policy.


2.  General Insurance/ Non-Life Insurance


   a). Marine insurance -

       Marine insurance is the oldest form of insurance.  Marine insurance has its origin in England.  The Britishers open seven marine insurance companies in Kolkata between 1797 and 1810.

   b). Fire insurance -

            Fire insurance originated much later, obtaining impetus from the great fire of London in 1666.   The Victims of fire hazards were provided with the necessaries of life.  England, Fire Insurance office was established in the year 1681.

   c). Motor vehicle insurance - 


          Motor insurance is an insurance which gives protection to the vehicle owner against damages to his/her vehicle and page of any third party liability determined as per law against the owner of the vehicle.


  d). Miscellaneous insurance

           With the industrial revolution of 19th century in England the miscellaneous insurance developed.  


3.  Reinsurance - 

              Reinsurance is insurance of insured risk where the insurer retains a part and cedes the balance of a risk to the reinsurer.  This is done to facilitate the greater spread and reduce liability on the part of the insurer.

       
See Also...
   
Difference / Distinction Between Wagering Agreement and Insurance Contract

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Establishment, Constitution and Capital of the Life Insurance Corporation of India | Insurance Law

Duties, Powers and Functions of Insurance Regulatory and Development Authority (IRDA) | Insurance Law