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Evolution of Insurance

Slide prepared by: Abdullah Al Yousuf Khan

Assistant Professor - IUBAT
Evolution of Insurance
Earliest form of insurance; marine trade loans
or carriers contracts.
Evidenced in Babylonia and India.
In Rigveda [the most sacred book of India],
reference were made to the concept of
Yogakshema.
Hummurabi and of Manu shows
sharing of losses in several codes.
 Evolution of Insurance

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Marine Insurance
The oldest form of insurance.
Under Bottomry Bond, the system of credit and
the law of interest were developed based on a
clear appreciation of the hazard involved.
If a ship was lost, the loan the loan and interest
were forfeited.
Travelers by sea and land water were very
much exposed to the risk of loosing their
vessels and merchandise because the piracy
on the open seas and highway robbery of
caravans were very common.
Fire Insurance
Originated in Germany in sixteenth century.
After the great fire in England in 1666 when the fire
losses were tremendous. About 85 percent of the
houses were burnt to ashes and property worth of
100 million pound sterling were completely burnt off.
In 1681 the Fire Insurance Office established in
England.
SUN FIRE OFFICE was a successful fire insurance
institution.
In India, General Insurer started working in 1850 with
Triton Insurance, Calcutta.
Life Insurance
First appeared in England in 16th century.
The first recorded evidence in England
being the policy on life of William
Gybbons on June 18, 1653.
First registered office of Hand-in-Hand
Society established in 1696.
The famous Amicable Society for a
Perpetual Assurance Office started its
operation in 1706.
Miscellaneous Insurance
With the industrial revolution in England in the
19th century many forms of insurance took
place in the present world.
Accident insurance
Fidelity insurance
Liability insurance
Theft insurance

Lloyds Association was the main functioning

institution.
 "The world's specialist
insurance market"
Type Insurance market
FoundedLondon, England
1688; 326 years ago
Founders Edward Lloyd
HeadquartersLloyd's building
, Lime Street
London, United Kingdom
Key peopleJohn Nelson
(Chairman)
Inga Beale (chief executive
officer)
Websitelloyds.com
 Kinds of Insurance
Business Point of View Risk Point of View
Life Insurance Property Insurance
Marine
General Insurance Fire
Social Insurance Miscellaneous
Liability Insurance
Other
Personal
Property
Liability
Guarantee Insurance

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 Kinds Of Insurance From Risk Point Of View
Personal

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 Types of Insurance Organizations
Individual
Self-Insurance
Joint
Partnership
Mutual
Co-operative
Lloyds
State Stock
Insurance
Companies
Association
Insurer
Companies
Organization

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Insurance Organization in Bangladesh
IDRAGovt.Deposit
Shadharan
General
Jiban
Private
Insurance
Life Insurance
Insurance
Insurance
Insurance
Insurance System
Development and Regulatory Authority
 Questions
Describe the main kinds of insurance and
examine briefly the nature of risks protected
by each kind of insurance.
Detail the different kinds of insurance
organizations and illustrate the merits and
demerits of each organization.
The latest and the oldest form of insurance is
Lloyds one. Illustrate briefly.

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