Page 14 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

He called his other brother hawkers and narrated his story. Many others in the same

job had similar stories to tell. They just hit upon an idea. A cycle say would cost Rs.

100/- There were almost 100 hawkers. Almost every year one cycle was getting

stolen. Only if they could have a fund of Rs.100/- such a loss suffered by any of them

could be compensated.

And the creation of a fund of Rs.100/- merely means a contribution of Rs.1/- per

person per year. The concept of insurance was born. A cooperative society was

created, where each member of the family contributed a small portion to provide

for a possible big loss which was too big for anyone to bear.

This crude beginning could later on be applied to varied circumstances. The traders,

who sailed on the uncharted high seas, faced the risk of damage or total loss due to

storm on the high seas. House owners found the risk of fire to their house to ruinous

to bear.

Life being the most precious of the productive assets similarly needed to be

protected. Insurance, let it be noted, does not prevent the loss to occur. It cannot

prevent, theft fire, sinking of a ship due to storm or even death of the bread winner.

Far from it, if they could be prevented, there would be no need for insurance.

It is only the damages beyond the control of men, purely accidental, or due to fury of

nature, which are subjects for insurance. An intentional damage caused by the

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