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What is a proposal form in insurance?

What is a proposal form in insurance?

A lot of paperwork has to be done before and after buying an insurance policy. And the very first paper or form that you would need to fill up is a proposal form.

So, what is a proposal form in insurance? As the name suggests, it is a form that you fill and submit to propose something. This means the initial task of buying insurance is to present a proposal. One may propose it verbally, or by writing a letter. But most of the time, when you visit an insurance company, an agent would give you a form to fill.

What are the elements in a proposal form?

You may wonder what the form is about. The form asks you basic questions as well as requires you to answer some specific questions depending on the insurance you are buying.

Let us look into some basic questions that you would be asked in the form:

  1. Name– The name of the proposer comes at the very first of the form.
  2. Address– Address is necessary and should be written correctly to prove that the candidate is genuine.
  3. Contact– Contact details like mobile number, email, fax, etc. are required for seamless communication.
  4. Occupation– The occupation of the proposer gives an idea about the income and suggests the best plan.
  5. Insurance amount needed– You need to provide detailed information about the property being insured, and what amount of coverage you require. Also, valid reasons should be provided.
  6. Claim history– You must provide information clearly about previous damages and insurance claims that you have made.
  7. Other insurances– You have to write about other insurance policies you have bought and mention the names of the companies.

This is only the very basic information. Depending on the insurance policy you are going to buy, a lot more details should be provided in the proposal form.

For example, if you buy car insurance, you need to explain the model, when you purchased it, the price of the car, etc. On the other hand, if you are buying life insurance, you have to mention your age, medical conditions, a brief about the nominee, etc.

Most proposal forms include information about the proposer’s physical health. Also, you have to sign the proposal form with the date. The signature of the insurer’s agent should be present too.

Besides, the form includes some terms and conditions as well as has some declarations. For example, it says that the information you have provided is required to be correct. It also mentions that the premium amount has to be paid by the proposer and so on. You must go through these terms, conditions, and declarations before signing the form.

Final overview

And now the proposal form, with all your information would go for underwriting. Underwriting is a process to check the proposer’s eligibility to receive the insurance benefits. Once it is done, you are all set to enjoy the insurance benefits.

Therefore, make sure to fill up the proposal form carefully and provide genuine information with adequate reasonings so that the company approves your proposal.

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What is an insurance policy number?

What is an insurance policy number?

Buying an insurance policy might seem like an unnecessarily forced expense to you, but it is very important. Depending on the type of insurance you choose, it might serve as a protective cover for your family or a valuable investment.

Every vehicle on the road has a unique number for identification purposes. Just like that, every insurance policy has a unique policy number. It serves various purposes. In this article, we will learn what is an insurance policy number and the purposes it serves.

What is an insurance policy number and why is it important?

An insurance policy number is a unique set of number combinations allotted to a policy holder. Through this number, its recognition and coverage span is made viable. It is a set of 8 to 10 digits, usually printed on the insurance card or statements issued by the company. 

Every policyholder must remember or note their policy number as one might need it under certain situations. All types of insurance policies, be it motor insurance, health insurance, life insurance, term insurance, property insurance, etc have a unique policy number associated with it.

Let’s cover a few aspects of when and why is an insurance policy number is deemed important.

Importance of an insurance policy number

  1. Renewing your insurance– Every time you plan to either change or renew your insurance policy, this number comes in handy. It ensures that your no claim bonus (NCB) gets transferred to your new policy from the previous one.
  2. Police checking– Police routine checks are done so as to make sure of the vehicle’s legitimate owner and possession of certain other documents for safety reasons. It is here that you would need to show your unique insurance number for verification.
  3. Requesting for a duplicate policy– Getting a copy of your original policy (if lost) can be done easily when you provide the company with your policy number. Once the system is fed with your previous insurance policy number, details of the same can be easily retrieved to produce a copy. Hence, the workload is reduced to zero!
  4. Selling your vehicle– At some point in time, you’d want to sell your vehicle to get a new one. To check the validity of the vehicle’s insurance, the buyer might ask for your policy number to feed his contentment for making a safe and cautious purchase.
  5. Updating your insurance policy details– There are times when wrongly pronounced information, like your phone number, address line, name, etc. gets included in your policy details which demand to be rectified at the earliest. To have this done, an insurance policy number proves immensely useful and essential.

The insurance policy number provides your insurance policy with its identity. Being aware of the insurance policy number can help you in several situations. 

You cannot enjoy the benefits of the policies without the unique set of the number assigned for your insurance. Now, that you are aware of what is an insurance policy number and its importance, it is essential that you remember the number and educate others about its importance and benefits.

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Meaning of Unit Linked Insurance Policy (ULIP)

Meaning of Unit Linked Insurance Policy (ULIP)

ULIP plan or Unit Linked Insurance Policy is a combination of both investment and insurance. It serves the multi-faceted purpose of securing your life as well as serving the need for investment.

Let’s understand the meaning of a unit-linked insurance policy in a simple way. A unit-linked insurance policy is basically a plan in which the premium paid by the policyholder is utilized for two purposes. A part of it is used to provide a life or health insurance cover, and the rest is used for investment. It provides its buyers with a multitude of opportunities for wealth creation and expansion in the long term.

Benefits of a ULIP plan

ULIP plans offer its customers an opportunity to explore and make investments in various markets depending upon their investment goals and risking capacity. Here are some noted benefits of a ULIP plan:

Simultaneous life security and savings

Besides saving and investing, the Unit Linked Insurance Policy plan also helps protect you and your dear ones in times of emergency. Alongside, building a robust ground for growing wealth for longer terms through its investment aspect.

Flexibility

a ULIP plan is extremely flexible in various ways. This is one reason for its growing preference among customers. A ULIP helps you to achieve your long-dreamt financial goals in the following ways-

  • Unrestricted switching between investment funds depending on your changing needs is easily granted.
  • There are allowed partial withdrawals after the termination of a 5-year lock-in duration.
  • It offers a choice to make an addition of sums of money in order to help investors get better on grounds of your changing situations and plans.
  • ULIPs also allow you to opt for a rider if you wish to get extra protection.

Free-look period

Most ULIPs come with a free look period. This typically is a 15 day time period during which you have the liberty to cancel out the policy if it doesn’t satisfy you. The entire amount of premium is refunded after deducting the cancellation charges that are mentioned in the policy.

Encourages Goal-Based Savings

ULIPs are a long-term systematic saving option. In order to fulfill your long-term goals, like having your own house, ensuring good higher education, etc, you need to save. ULIPS are designed to address these key financial goals and encourage disciplined savings. They prevent you from compromising your long-term goals for your short-term benefits.

How does ULIP work?

When an individual invests in ULIP, the insurance company allocates a certain amount of the premium in bonds/shares, etc. The remaining amount is used to offer as an insurance cover.

The insurance company collects the money from all the policyholders and invests the entire amount in funds selected by them. Further, the total amount is divided into ‘units’. These units are then further allocated to the policyholders depending on the amount invested by them. The value of the units is referred to as Net Asset Value.

The various benefits and considerable returns offered by ULIPs make them the foremost choice for investment. But it is very necessary for one to completely study the market, analyze the risks and understand the benefits before taking up such policies. This is because ULIPs like any other investment are a matter of risk too.

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Trade credit insurance

Trade credit insurance

Trade credit insurance is a risk management tool that protects against the losses that might occur after the delivery of goods has been done. It is an insurance policy that provides coverage to manufacturers, traders, and other such service providers.

It covers them against the losses that they might have to incur because of the non-payment or delayed payment of any commercial debt. Trade credit insurance pays out for a percentage of the outstanding debt when the buyer due to reasons like bankruptcy or insolvency is not able to make the payments.

Trade credit insurance plays an important role in maintaining the national and international trade market. It prevents the trader’s from becoming bankrupt. It helps companies to manage their credits and also provides the trade companies opportunities to expand in the global marketplace.

Let’s understand trade credit insurance in depth.

What are the risks that trade credit insurance provides coverage for?

The primary function that trade credit insurance serves is to protect the sellers against the buyers that cannot pay due to some circumstances or are not willing to pay deliberately. It provides protection against the buyers that have declared a legal status of insolvency, bankruptcy, or any other such situations that is acceptable under the law.

As explained by the International Credit Insurance and Surety Association, trade credit insurance pays out for a specific percentage of the outstanding debt. The percentage covered and compensated for under the policy usually ranges from 75 to 95 percentage of the invoice amount. It might also be higher or lesser depending upon the type of coverage purchased by the seller or the insured.

Here are a few other things against which the policy provides protection:

Protracted default

This is a case wherein the buyer fails to make the payment within the pre-decided time period. The tenure is calculated from the due date of the payment of the receivable or delivery of goods.

Political risks

Under a few policies, the insured also has an option to receive coverage arising due to political risks that include non-payment due to:

  • Restrictions on transfer or inconvertibility.
  • Restrictions on import and export.
  • Wars.
  • Natural Disasters.
  • Cancellation of trade license, etc.

Trade credit insurance policies are flexible enough and allow the policyholders to choose their coverage. Policyholders can choose to cover their entire portfolio or just the key accounts.


Things that are not covered under this insurance policy?

There are various things that are excluded under the policy:

  • Radioactive contamination.
  • Problems in payment due to personal disputes between the buyer and seller, the costs incurred in resolving them.
  • Penalties the buyer is entitled to pay.
  • Contract of sale made with private individuals.
  • The amount owed by the state or central government and the institutions or departments controlled by them that cannot be declared as insolvent under any circumstance.

Benefits of trade credit insurance

There are numerous benefits offered by this insurance policy that prove to be extremely beneficial for businesses even in the long run. Listed below are a few of them:

  1. Protects the company’s Balance sheets and P&L against bad debts.
  2. It potentially reduces and quantifies the provisions for bad debts.
  3. Offers better borrowing and financing options.
  4. It increases profitability.
  5. Enhances the confidence of the seller and motivates him to expand his business.
  6. Helps in maintaining the cash flow, budgets and business plans of the traders.
  7. The insurers undertake thorough screening of the buyers, the information they collect might also help the seller to protect himself from frauds and losses.
  8. Helps in improving credit decisions.
  9. Trade credit insurance also helps in protecting the interests of the investors and stakeholders.

When should the traders or companies purchase trade credit insurance?

It is advisable that the trading companies take up trade credit insurance when their business is good and their financial status is stable. So that when problems strike them they don’t end up with heavy losses and debts.

Companies often make the mistake to buy trade credit insurance when they have a credit problem or there is a forecast of any such problems in the near future. This might be too late to get insured and eventually they might suffer losses.

In today’s world, taking up insurance has become very easy due to the digitization and revolution of the online world. Businesses can easily surf through the internet, study the various plans offered by different insurers, compare them and take up the trade credit insurance that suits their business and its dealings the best.

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What is underwriting in insurance?

writing

What is underwriting in insurance?

Ever wondered how insurance companies function effectively in an industry where such risks high risks are involved? It is through underwriting! How can an insurance company understand the risks involved while issuing a policy?

This is determined via Underwriting- a process that involves guidelines, data, and statistics that are provided by actuaries. Such insights help an underwriter to anticipate the future risk and charge premiums as per his/her predictions.

Let’s dive a little deeper and get a better understanding of what is Underwriting in Insurance. Underwriting refers to a sophisticated process that assesses an insurance company’s risk involved in insuring a car, home, individual’s health, life, or more.

It basically determines whether the coverage provided to a business or an individual would be profitable for the insurance company or not. To make it simpler, the process gauges the chances wherein the insured individual will make a hefty claim and the insurance company will lose money by offering the policy

After coming to a conclusion for the risk involved, a price is set by the underwriter who also determines the insurance premium. The premium is charged to the insured in exchange for the risks an insurance company is willing to take.

The Process of underwriting

Underwriters are experts in the field of insurance that possess eminent skills to comprehend the risks and also provide solutions to solve them. They have excessive knowledge pertaining to the evaluation of risk. This knowledge helps them to determine whether a policy should or shouldn’t be issued by an insurance company.

The underwriter scrutinizes the information that is provided by your agent and determines whether you will get access to a particular policy or not.

The functions of an underwriter

  • An underwriter helps determine the kind of policy and risk the insurance company is agreeing to. In addition, it also considers the conditions under which the agreement is based on.
  • Assessing crucial information to evaluate the actual risk is another important function of an underwriter.
  • To lower or eliminate the risk of claims in the future, an underwriter looks out for all the possibilities to offer effective solutions.
  • An underwriter also tries to avoid any alteration made to the coverage via endorsements.
  • In the presence of issues in insurance, an underwriter with the help of your agent looks out for ways to help you get insured.

Today, a majority of the underwriting is automated. In regular cases, the information is simply entered into computer programs. Such programs are very much similar to an online quoting system that you might view when you receive an online quote related to insurance.

An underwriter comes into the picture mostly in circumstances that require assessment or interpretation. This involves scenarios such as when there are payment-related issues with the insured when multiple claims have been made by an individual, or when new policies have been issued.

Usually, underwriters will go through policies and risk information only when the situation is not ordinary. This doesn’t mean that an underwriter will never review your case just because a policy has been granted. An underwriter can always come into action especially when there is a change in insurance condition or alterations in the risks related to an insurance company.

We’ve given an elaborate answer to the question- What is underwriting in insurance? Now, it’s your turn to educate others on underwriting that not many may be aware of.

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What is Reinsurance? – Its Types and Functions

agreement

What is Reinsurance? – Its Types and Functions

To secure a future, insurance is the ultimate answer that relieves financial burden in the case of unforeseen circumstances. Just like others, even insurance companies are prone to unexpected situations.

To keep them prepared for the future they insure themselves too. But, have you ever wondered how they do this? It’s through Reinsurance. What is Reinsurance, you ask? Here is the answer:

Reinsurance Meaning

In simple terms, Reinsurance refers to the insurance policy that is purchased by insurance companies to secure their interest and to make sure that they remain solvent. Solvency becomes an issue during extreme scenarios that results in major claims, like a natural disaster.

This is when Reinsurance helps the company to provide assistance even during extreme conditions. The main motive of the policy is to ensure that the insurance company incurs minimal losses and also grant it substantial time to recover from the losses.

For you to understand better, here is an example: In 1992, Florida was struck by Hurricane Andrew that caused damage of $15.5 billion. During this period, nearly seven insurance companies became insolvent as they were not able to pay the claim amount that resulted because of the disaster. To avoid this, being insured is not an option for insurance companies but more of a necessity.

Types of Reinsurance

There are mainly two types of reinsurance, they are as follows:

1.) Reinsurance treaty

When an insurance company enters into a reinsurance contract, it is known as treaty insurance. In a treaty contract, the reinsurer agrees to all specific risks pertaining to the ‘insured insurance company’. Usually, in such a contract, the company providing reinsurance tends to agree to all the kinds of risks mentioned. There are two types of treaty contract:

  • Quota Share or Quota: In such a contract, the ceding company, keeps a certain percentage of risk to itself while the rest is transferred to the reinsurer. The percentage is fixed and mentioned in the contract.
  • Surplus Insurance: Three factors that are considered here are: The percentage of risk that will be transferred; The utmost cover that the reinsurance company is willing to accept; The maximum loss factor.

2.) Facultative reinsurance

In Facultative Reinsurance, a single risk is covered. This allows the reinsurer the freedom to evaluate individual risk and proceed accordingly. The risk to be taken up is determined on the basis of the reinsuring company’s structure of profit. A facultative certificate is created in such agreements that mention the specific risk that is accepted by the reinsurer.

Functions of Reinsurance

There are several functions of Reinsurance that help a company in a plethora of ways. They are as follows:

  1. Transfer of risk: The specific risk of a company can be shared with multiple other companies.
  2. Capital management: By transferring or sharing the risk, companies can avoid huge losses.
  3. Arbitrage: Profits can be obtained additionally by securing insurance which holds a lower premium than the amount that is collected from the customers by the company.
  4. Expertise: A company can receive a high rating and premium by exerting the other insurer.

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What is premium for Insurance and how it works?

What is premium for insurance and how it works?

We all make certain investments for our future be it in gold, shares, or something else.
But while doing all of these we forget that we do not know what the future holds for us. Getting insured is making yourself ready for the unforeseeable circumstances that might hit and shake your entire life including the plans you’ve made.

When you go to an insurance provider and take up an insurance policy, they ask you to pay an insurance premium at a certain interval of time. A lot of questions might bombard your mind, what is premium for insurance?, how does it work? etc.

Here’s all you need to know about insurance premium meaning and its working:

1. What is it?

In simple words, an insurance premium is an amount you need to pay for purchasing an insurance policy. Still, confused? Understand it this way.
The insurance policy is an arrangement made between the insurer and the insured. Just as any other arrangement, an insurance policy has a consideration too. That consideration is known as an insurance premium.
The insurer may ask you to pay the insurance premium at a fixed interval of time which can be monthly, quarterly, half-yearly, etc. This depends upon the policies of the insurance company and the kind of policy you choose.

2. What are the factors that determine the rate of premium?

This is one question that would surely strike your mind when you choose an insurance plan for yourself. Here’s an explanation to make things clear for you.
The rate of premium differs and depends on various factors which include:

  • Type of insurance that is opted for.
  • Age of the person taking the insurance
  • Reputation and capacity of business in case of commercial insurance policies.
  • Medical history and lifestyle of the insured.

Insurance companies appoint experts to analyze these factors and determine the risk associated with a policy. Greater risks mean higher premium rates.

3. Types of Insurance premiums

The type of premium charged by the insurance provider depends upon the kind of insurance policy you’ve chosen.
There are broadly 3 different kinds of Insurance premiums:

Level premiums

In this case, the insurer averages out the premiums that the insured might have to pay during the tenure of insurance. The insurer then charges the average amount throughout the period. The amount of premium remains fixed throughout the course of policy. This kind of premium is charged mostly in case of the life insurance policies.

Increasing premiums

This one is for those who do not wish to pay regular premiums and pay less in the initial stages. The premium rate keeps increasing throughout the tenure of the policy.

Decreasing premiums

Such premiums are mostly applicable to the mortgage redemption policy. There’s an interesting fact about this kind of premium, that is the number of premiums keeps decreasing with the decrease in the outstanding loan amount.

Along with the various benefits insurance provides another major advantage is that the insurance premiums are tax-deductible. These benefits are available if policies are taken in the name of yourself, your spouse, or your children. You can also combine various policies to avail the benefits.

Do you know what is the best part? These benefits are available for both public and private sector insurers. Happy insuring!

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What is endorsement in insurance?

What is endorsement in insurance?

At times, we might have to make changes to our existing insurance policies. For instance, you might want to add your newly bought expensive piece of jewelry to your existing house insurance policy. This addition and any other changes like this can be made with the help of an endorsement without having to issue a new policy. Interesting isn’t it?

So let us dive deeper and know what endorsement in Insurance is in a little detail and know its benefits.

What is endorsement in insurance?

Endorsements, also known as riders are used to make changes or alterations to an existing insurance policy. They can be used to add, remove and replace coverage mentioned in a policy. They are legally binding amendments to an insurance contract that can be issued during the tenure of a policy. Endorsements can be made in a policy at the time of purchasing it or at renewal.

When an endorsement is made in a policy, adjustments might also be made in the premium of the policy. Endorsements are used to make changes in insurance policy providing coverage to property, casualty insurance, and also insurance policies related to health and life.

An endorsement remains in force as long as the original policy does not expire or mature. The terms and conditions of renewal of the endorsements are usually the same as that of the original policy. There might be exceptions in case the endorsements are valid only for a specific time period, as mentioned in the policy.

Types of insurance endorsements

Insurance endorsements can be of two types:

1. Replacement of your previous policy document

In this category, the insurer sends or gives you a whole new contract with the upgrades or endorsements made in the original policy. The previous policy papers become invalid and are of no further use.

For example, in case you change your details like your address, phone number, or anything mentioned in your original contract. The insurer will send you new papers with changes made making the old papers invalid.

2. Additional documents added to your policy

When the endorsements add coverage, lists additional conditions, adds more limitations or restrictions, etc., it is done by adding more papers to your existing insurance policy. This is because there are no changes but just additions made to the wordings of the original policy. The endorsements papers are add-ons to the policy and must be preserved along with the original papers.

What do endorsements cover?

Endorsements cover a wide range of situations. They can cover situations like the removal of a person from a policy to the addition of an individual into the contract. It can also be used to include items to your policy, for example, you can add objects of art or pieces of jewelry to your home insurance plans. However, this will lead to an increase in the value of the premium as per the value of the additional objects.

Endorsements can also be used to limit coverage. This may involve a scenario where you might want to exclude water damage from your house insurance, the changes can be made in your contract with the help of endorsements.

You must always compare your endorsement contract to your original policy declaration paper, to have proper knowledge of the changes made in the contract. Being well versed with endorsements also helps you to understand the new document’s consequences in a better way.

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4 Types of General Insurance that you should be aware of

4 Types of General Insurance that you should be aware of

Everyone possesses a valuable asset that is dear to their heart which may include a house, jewelry, car, and other prized possessions. But have you ever wondered, what if you lose it all due to circumstances like natural calamities, fire, or even theft! These are all possibilities that can turn into reality even before you give it a thought.

The best possible way to avoid such unexpected occurrences is to avail of general insurance. As it’s rightly said- ‘Precaution is better than cure’

General insurance is the ultimate precaution you can opt for as it covers the insurer in cases of damage, theft, or loss of valuable items.

Types of general insurance

There are varied types of general insurance plans prevalent in the market. However, a few of the popular and most opted ones are as follows:

1. Travel Insurance

Travel insurance covers financial necessity when you travel to another place. It safeguards you from any unanticipated emergencies on a trip like trip cancellation, baggage loss, flight delay, and other situations that are dreaded by many. In a condition where you are hospitalized while traveling, you may be offered hospitalization free of cost if you’re covered with travel insurance.

2. Motor Insurance

Motor Insurance covers a vehicle against accidents, damages, theft, vandalism, and more such occurrences. It’s made mandatory by law to get motor insurance for every vehicle to drive on Indian roads legally. It’s available in two forms- comprehensive and third party.

Comprehensive insurance protects your vehicles against incidents like theft, fire, damage by impact, etc. Furthermore, it offers coverage against any liability of the third party like injury, death, or property damage.

Third-party insurance acts as an arsenal that protects the third party from any damage or harm caused by you during an accident. However, one of the important things to remember is that it would not cover any damages related to your vehicle. Another essential point to be noted is that as per the Motor Vehicles Act, 1988, third-party insurance is mandatory, the absence of which would result in a hefty fine or punishment.

3. Home Insurance

Your home is a priceless possession that is built through your hard-earned money and therefore should be given the ultimate protection. Home insurance is one of the most popular types of general insurance as it safeguards your abode and the items present in it. It essentially covers loss or damage caused by natural or man-made circumstances and prevents bearing a huge hole in your pocket.

4. Health Insurance

Health insurance is a vital tool that plays a crucial role during medical emergencies. It covers the expense of hospitalization up to the amount that has been insured. Since medical treatments are very expensive, health insurance acts as crucial assistance for you and your finances. One can avail of a family floater plan that offers coverage for all members of the family or a standalone health policy when it comes to health insurance.

Now that you’re aware of the prominent types of general insurance, get your hands on them as per your requirement today for a stress-free tomorrow.

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Unraveling the History of Insurance

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Unraveling the history of insurance

Insurance is as old as the first traces of civilization in the world, can you imagine? Be it a risk of death in a car accident or a fear of being killed by a giant mammoth, humans have always been open to the risk of death and harm.

Researches show that the history of insurance with regards to it being a proper legal document from just being a verbal commitment dates back to the Babylonian empire, which is centuries ago, astonishing, isn’t it?.

The first known Insurances

Bottomry contracts are said to be the first insurance contracts known to the merchants of Babylon in the 4000-3000 century BC. It is also said that the Hindus had a similar kind of practice in 600 BC and in Greece such practices were traced as early as the 4th century BC. Under such contracts, loans were granted for shipping purposes and were not needed to be paid if the shipment was lost or destroyed in the sea. 

Can you believe the present-day marine insurance is just an advancement of the centuries-old bottomry contract with almost similar pacts?

Now let’s dive deeper into the history of insurance and look at how insurance developed in different parts of the world:

England

The great fire of London led to the invention of fire insurance in 1666. Several insurance companies, most of which were fraudulent, were incorporated in 1711. Out of these the most prominent and successful insurance companies, whose incorporation marked the start of property and liability insurance were the London Assurance Corporation and the Royal Exchange Assurance Corporation.

How could a discussion about insurance be completed without Lloyd’s of London- the international market of insurance? It was patronized by various merchants, banks, and insurance underwriters and became the most trusted insurance company.

United States

Philadelphia Contribution ship- the first insurance company in the United States was started by Benjamin Franklin. Moreover, the Presbyterian Ministers’ Fund was the first full life insurance company set in 1759. 

By 1820 there were 17 insurance companies incorporated only in New York and many more in the entire country. Out of these companies, many failed due to poor management, fraud practices, and inadequate distribution units.

The era of the Civil War saw the worst phase in the history of insurance. Dividends were declared but not earned and advertisements exaggerated the policies looting the public. In the late and mid-18th-century, numerous insurance companies failed and the 19th century enjoyed a steady growth of the insurance markets.

Other parts of the world

During the 20th century there was a huge expansion in world trade and businessmen started investing outside their home countries, this led to the unstoppable growth of insurance companies worldwide. 

The European and American countries remained to be the center of insurance markets and served the needs of other parts of the world.

Insurance in the 20th and 21st Century

The 20th century was the era when pet insurance was introduced. It first entered the USA in 1982, a dog named Lassie became the first pet to receive it because of her popularity.

In the 21st century, pet owners realized the importance of pet insurance. It became widely sought-after. In the year 2005, the USA had more than 500,000 insured pets.

Insurance for ages has been the most trusted measure to safeguard oneself and the family. It continues to keep up with its reputation and maintain people’s belief in them. Have you guarded yourself with insurance? If not, then now’s the time!

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