(1) EARLY DEVELOPMENTS: The early development of life
insurance closely linked with that of marine
insurance. The first life insurers
were marine insurance
underwriters , who started issuing policies on the life of a merchants, master
and the crew of the ship sailing along with the goods. . If a ship was
captured, the insurer paid the ransom
needed to secure release of the captain
and the sailors . Life insurance
policies were granted during the reign of Queen Elizabeth. These early contract took the form of temporary assurance
covering the life assured for a short period onlyThe first recorded life policy was issued by on 18.6.1583 on the life of
William Gibbons for 12 months at
the rate of 8% of 382,65.84 for which sum sixteen
underwriters were responsible. However
this first policy was subject to a dispute
over payment because the policy holder died within 11 months of
issuing the policy. The
underwriters contended that the
policy period of 12 months related to lunar months , which has expired.
Happily the court ruled that the payment must be made. (2) LIFE INSURANCE IN 18TH CENTURY: It was in the eighteen century the societies began of the to be formed with the object of granting life assurances . The Amicable Society (1705) the equitable Life Assurance Society. (1762.,), the West Minister Society (1792) were some important societies .The application of the mortality tables in 1755 by the Dodson and the introductions of actuarial science revolutionized the whole concept of life insurance. As the life insurance became better known, a practice grew up of speculating in lives, particularly of well-known people, like kings, national leaders or prisoners particularly , if charged with an offence that would call for capital punishment upon conviction . The premiums varied with their reputation and state of health. If person of this category fell seriously ill a huge amount of the insurance was written. In order to put an end to this speculation with the its attendant evils, an Act called the “Life Assurance Act” (commonly known as the Gambling Act), was passed in 1774.
Happily the court ruled that the payment must be made. (2) LIFE INSURANCE IN 18TH CENTURY: It was in the eighteen century the societies began of the to be formed with the object of granting life assurances . The Amicable Society (1705) the equitable Life Assurance Society. (1762.,), the West Minister Society (1792) were some important societies .The application of the mortality tables in 1755 by the Dodson and the introductions of actuarial science revolutionized the whole concept of life insurance. As the life insurance became better known, a practice grew up of speculating in lives, particularly of well-known people, like kings, national leaders or prisoners particularly , if charged with an offence that would call for capital punishment upon conviction . The premiums varied with their reputation and state of health. If person of this category fell seriously ill a huge amount of the insurance was written. In order to put an end to this speculation with the its attendant evils, an Act called the “Life Assurance Act” (commonly known as the Gambling Act), was passed in 1774.
It prohibited all
insurance on lives expect those
satisfying insurable interest
requirements . (3) LIFE IN\SURANCE IN 19 TH CENTURY: During the early years of the nineteen century a large number of life insurance companies were formed. A large
number of companies failed and many of
them preferred to amalgamate their
business . In order to stabilise the business
further . Life Assurance companies Act 1870 was passed. Further Act was
passed in 1871. (4): LIFE INSURANCE IN
20TH CENTURY: The above legislation was repealed by the Assurance Companies Act
1909, which was applied to all
classes of the insurance business. Later on, various acts were passed to meet the growing needs of
the industry and to protect the insured. Some of these acts are : Industrial Assurance Act 1923,. Assurance Companies Act 1946,
Insurance Companies Act 1956 and the Companies Act 1967. (5)
LIFE INSURANCE IN INDIA: In India
an English insurance company known as
oriental Life Insurance Company started its operation in Calcutta in the year
1818. It insured the employees of East India Company only. A good member of European companies had entered the Indian scene by
1870, but mostly European lives were
insured by them.
Swedeshi Movement
started in the wake of freedom struggle in
India, gave birth to many Indian
insurance companies and some very important prominent Indian names were associated with the life insurance industry. In 1956, the life insurance business was nationalized by taking
over 245 companies and by forming one single
corporation named as Life insurance Corporation (LIC) of India. Now Life insurance Corporation of India and 12 private
life insurance companies are permitted
to carry on life insurance business in India.