Page 4 - IC23 life insurance application

each member of the family contributed a small portion to provide for a possible big

loss which was too big for any one 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 too

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 thievery, 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 insured is an act of sabotage and is therefore a criminal action. In

case of human life, even suicide, at least during the short period of one year, is

beyond the pale of insurance.

We call life insurance a social security tool because without the provision of

insurance, this human society would consist of hapless old people, helpless widows,

unprotected orphans. The economy would not survive let alone grow. The factories

would not restart after a fire, houses cannot be rebuilt after an earthquake or a cycle

or a motorcycle for that matter cannot be replaced after being stolen. Unlike a

socialist society or a highly developed capitalist society where the State takes care of

individuals who become destitutes or deprived, in a developing society like ours, the

State is too poor to take up such responsibilities.

Copyright Dr Rakesh Agarwal Sashi Publications Private Limited

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010