(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 only. These were issued by
the private individual known as
underwriters who formed Mutual assurance
Associated which were in a way, self-
insurance clubs. They issued annuities
and pension and for a husbands.
The
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. 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. The first Indian company by the name of : Bombay Mutual Life
Assurance Society” was set up in1870-71. Then came in 1874 the “ Oriental Government
Security Life Assurance company”. 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.