Page 2 - IC23 life insurance application

INTRODUCTION TO INSURANCE

Need for insurance :

From cave age till date, the story of evolution of mankind is in fact a saga of

continuous search for security. His problems have remained the same through the

centuries though the form has changed with the changes in economic and social

circumstances.

When men lived in caves, he searched for security against animals, because they

could kill him while asleep. He was not sure, he could hunt every day and get his

food. He lived in a group or tribe so that other members of the tribe could come to

help in times of crisis. The system of family was the product of a similar need and to

seek comfort and security against sickness.

Protecting one's asset has been a continuous search not only of individuals but also

of groups of people. Thievery, fire, flood etc. have been a scourge against mankind.

Man earns investing his time, strength and intelligence. He also needs other

instruments like vehicles, factories, ship for transportation, production and trade.

Each of these resources are valuable and augment the creation of further wealth.

But when such aspects are lost or destroyed much before the expected date, the

calamity is suffered. Human being is an income generating asset. He expects to earn

during his lifetime sufficiently so as to provide for his old age. But when he dies at an

young age, the family remains unprovided for. A motor vehicle is to last, say 15

years. During this period, the owner makes sufficient saving as to replace it with a

Copyright Dr Rakesh Agarwal Sashi Publications Private Limited

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