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Concept of Insurance


Concept of insurance

Written by - Shalini Bishi


Life is full of risk. Whether one is inside the house or outside whether going on foot or travelling on bicycle , car bus train or even by air the risk of life is always there one does not know when the ceiling would fall, a strom or tornado destroy the house injuring the inmates theft or docuity may take place relieving one of his valuable going on foot one may be hit by a vehicle coming from behind the car may be collide with any other object. 

If a fine destroy a factory on dwelling house , the fire may not be predicted or avoided but thought insurance the sufferer may be compensate some extend, likewise in an accident one may loss his life.the life can not be restored or compensated which may save the dependents from economic hazard. 

History of insurance 

In India the history of insurance finds its roots in the mentions of writing of
Manu - manusmriti
Kautilya - Artha sastra 
Yangyavalkya - Dharmasatra


The advent of the life insurance business in india was introduced in 1818 with the establishment of the oriental life insurance company in calcutta. the enactment of the british insurance act took place in 1870. besides in the last 30 years of 19th century.

The bombay mutual - 1871
Oriental - 1874 
Empire of India - 1897 
Were setup in the bombay residency. 

the indian life assurance companies act was 1912 was first statutory entity to regulate the life insurance business in the country. 

Time line