Insurance being a Tool of Risk Management Article

NATIONAL RULES INSTITUTE SCHOOL, BHOPAL

INSURANCE LAW AS BEING A TOOL OF RISK MANAGEMENT

DESK OF CONTENTS

PAGE NO:

Introduction three or more

History of Insurance 4

Statement of Issue 4

Character of Insurance Contract 5

Meaning of Risk a few

Scope of Risk 6th

Types of Risks protected under Insurance Contract 8

Elements of Hazards 11

Commencement of Hazards 12

Situations affecting the hazards. 13 Risk Management 16

Advantages of Risk Management 18 Role of Insurance in Risk Management seventeen Conclusion 19

INTRODUCTION

Hindu philosophy provides axiomatic fact of the nature of insurance " Yat bhavathi tat nasyathi' meaning whatever is created will be ruined. Risk can be therefore inescapable in life. Business is a span of life, thus in life and business you will discover variety of hazards. The aim of all insurance should be to protect the owner from various risks which will he anticipates by changing the loss endured by a sole individual to a professional risk- bearer in consideration for any small amount of superior. The nature of insurance depends on the character of the risk sought to become protected. The chief varieties of a great insurance deal are lifestyle, fire, underwater and in modern times new types have been added from time to time like liability insurance and third party risk. Insurance is a technique of spreading on the large number of people as possible economic loss too serious to be conveniently paid for by someone. Thus this serves the social purpose. It is a cultural device whereby uncertain dangers of individuals may be combined within a group and so made even more certain; small periodic contribution by the persons providing a fund out of which those who suffer loss may be returned. In modern times, the happening of any function may be covered against reduced directly proportionate to the risk involved about its happening. An element of doubt must be within the course of the occurring of the function insured against, in some cases, in almost all non- life insurance legal agreements, the taking place of the function is doubtful while is obviously insurance the wedding is bound to happen however the time is unclear. The organization of insurance serves a two- fold purpose, instant, short selection and proximate purpose is always to protect the person assured from any reduction or injury to his your life or property by releasing the loss among a variety of individuals through a press of specialist risk- bearers. The far- sighted purpose is to speed up economic growth of the nation simply by mobilizing money for capital formation and helps in the organization of a welfare state.

HISTORY OF INSURANCE

The roots of insurance might be tracked to Babylonia, where traders were motivated to assume the risks of caravan control through loans that were refunded ( with interest) only after the products had arrived safely- a practice that was given legal force in the Code of Hammurabi ( c. 2100 B. C. ) While using growth of villages and transact in Europe, the medieval guilds undertook to protect their particular members coming from loss simply by fire and shipwreck, and provide good burial and support in sickness and lower income. By the middle of the 14th hundred years, as evidenced by the original known insurance contract. (Genoa, 1347), sea insurance was practically widespread among the maritime nations of Europe. In London, Lloyd's Coffee House ( 1688) was obviously a place exactly where merchants, shipowners, and underwriters met to transact business. By the end from the 18th 100 years, Llyod's had progressed as one of the initially modern insurance providers. In 1693, the astronomer Edmond Halley constructed the first mortality table, based on the statistical laws of mortality and compound interest....

Bibliography: * Murthy & Dr Sharma, " Contemporary Law of Insurance”, fourth edition. Lexis Nexis Wadhwa Nagpur. (2009)

* Srinivasan M N, Principles of Insurance Rules, Wadhwa & Company Nagpur

* Verma, Upadhyay, Srivastava, " Risk Management in Bank and Insurance” Deep and Deep Publications. ( 2007)

* Ratanlal and Dhirajlal. ( 2004) " Law of Insurance” Lexis Nexis: Butterworths, Wadhwa, Nagpur

[ 7 ]. (1984) a couple of SCC 719

[ 9 ]

[ doze ]. (2001) 2 SCC 160

[ 13 ]

[ 14 ]. (1992) 2 CPR 716 NC

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