Page 18 - MODULE1_Insurance Introduction_CHA

was to demand higher risk premiums, which prompted agency

houses in Kolkata to set up their own insurance, thereby

bringing the business further into Asia.

In India, insurance has a deep-rooted history. India with its

long tradition of trade has a history which goes back several

millennia. Early forms of insurance can be dated back to the

third century BC. It finds mention in the writings of Manu

(Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya

(Arthasastra). The writings talk in terms of pooling of resources

that could be re-distributed in times of calamities such as fire,

floods, epidemics and famine. This was probably a pre-cursor to

modern day insurance. Ancient Indian history has preserved the

earliest traces of insurance in the form of marine trade loans

and carriers’ contracts. Insurance in India has evolved over time

heavily drawing from other countries, England in particular.

th
In the late 18 century British insurance companies

operated on the Subcontinent through agency houses. In 1818, a

Scotsman founded the first modern insurance company to be

incorporated in India. Indian agency houses helped spread

insurance further into Asia. The Swadeshi movement at the

th
beginning of the 20 century led to the foundation of many

Indian owned insurance companies.

18