|WHAT IS INSURANCE?|
|HISTORY OF INSURANCE|
The idea of Insurance dates back to at least the 18th century B.C., with the code of King Hammurabi. It was considered as the most comprehensive and an ideal contemporary collection of Babylonian laws. It comprised of his legal resolutions, inscribed on a Diorite Stela. It included the provisions of economic and commercial formations. Family laws, criminal laws and civil laws were also systematically incorporated.
The Greek and Romans established first Life and Health insurance with their kind-hearted societies, around 600 BC. Later a type of state insurance was introduced. The state financial department would compensate the losses when the traders were robbed.
A ‘Guild’ is an association of artisans and merchants who oversee the practice of their craft or trade in a particular area. The Medieval period lasted approximately from the 5th to the late 15th centuries. It began with the fall of the Western Roman Empire and transitioned into the Renaissance and the Age of Discovery. In this period most craftsmen were trained and instructed through the special Guild System. After acquiring the skills they had to pay dues to the Guild and trained their own apprentices or probationers. The rich Guilds had large casket that pursued as an insurance fund.
‘Underwriting’ is the procedure through which an individual or institution takes on financial risk for a fee. Underwriters would evaluate the degree of risk of insurers’ business. Colonies were being established in the late 1600s. The practice of Underwriting came out in London coffeehouses. This system was regulated as the unofficial stock exchange for the British Empire. Coffeehouses were the central meeting places for traders, vendors and ship owners.
The first printed book on Insurance was the legal treatise On Insurance and Merchants’ Bets by Pedro de Santarém, published in 1552.
|TYPES OF INSURANCE||INSURANCE TERMINOLOGY|
|HOUSTON MARITIME ATTORNEY|