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Important Dates:

a) Date of Press Notification                                       : 04.04.2023

b) Date of opening of online application                     : 04.04.2023

c) Last Date for submit online application              : 24.04.2023

d) Date of issue of Hall Tickets                                    : 12.05.2023

e) Date of Examination                                                : 20.05.2023 (2.30 PM to 5 PM)

f) Date of Publication of Results                                  : 08.06.2023

g) Dates of 1st Counselling for Andhra & Rayalaseema Region:

i.  For MPC / EET               :               12.06.2023

ii. For BPC / CGT                :               13.06.2023

iii. For MEC / CEC              :               14.06.2023 15

h) Dates of 2nd Counselling for Andhra & Rayalaseema Region:

iv. For MPC / EET              :               19.06.2023

v. For BPC / CGT               :               20.06.2023

vi. For MEC / CEC              :               21.06.2023

i) Dates of 3rd Counselling for Andhra & Rayalaseema Region:

vii. For MPC / EET             :               26.06.2023

viii. For BPC / CGT            :               27.06.2023

ix. For MEC / CEC              :               28.06.2023 13.

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A lawyer is a person who practices law. The role of a lawyer varies greatly across different legal jurisdictions. A lawyer can be classified as an advocate, attorney, barrister, canon lawyer, civil law notary, counsel, counselor, solicitor, legal executive, or public servant — with each role having different functions and privileges.^[1] Working as a lawyer generally involves the practical application of abstract legal theories and knowledge to solve specific problems. Some lawyers also work primarily in advancing the interests of the law and legal profession.^[2][3]

Terminology[edit]

Different legal jurisdictions have different requirements in the determination of who is recognized as being a lawyer. As a result, the meaning of the term “lawyer” may vary from place to place.

Some jurisdictions have two types of lawyers, barrister and solicitors, while others fuse the two. A barrister (also known as an advocate or counselor in some jurisdictions) is a lawyer who typically specializes in arguing before courts, particularly in higher courts. A solicitor (or attorney) is a lawyer who is trained to prepare cases and give advice on legal subjects. Depending on jurisdiction, solicitors can also represent people in lower courts but do not ordinarily have rights of audience in higher courts. Both solicitors and barristers are trained in law. However, in jurisdictions where there is a split profession, only barristers are admitted as members of a bar association.

The distinction between barristers and solicitors originated in the English legal system, but many countries which have adopted English law have eliminated the distinction. Countries such as New Zealand, Canada (with the exception of Quebec, which practices civil law), India, Pakistan, and the US have adopted a fused profession, where all lawyers have the privileges of both barristers and solicitors.^[4]

Some fused-profession jurisdictions use one term to describe lawyers generally. For example, the US lawyers are typically referred to as “attorneys”,^[5] while Indian and Pakistani lawyers are known as “advocates”. Other fused jurisdictions use terms such as “barrister and solicitor” or “attorney and counselor” to describe lawyers in general.

Nonetheless, the terminology of “barrister” and “solicitor” may still be applied to lawyers who deal in the specific kinds of work barristers and solicitors generally do. In countries like the US, however, the term “trial lawyer” typically describes the work of a lawyer who specialises primarily in arguing cases.

Nonetheless, in countries like England, Wales, Australia, and South Africa, the distinction between barristers and solicitors remain. Additionally, England and Wales has a number of other classifications of lawyers, which include registered foreign lawyers, patent attorneys, trademark attorneys, licensed conveyancers, public notaries, commissioners for oaths, immigration advisers and chartered legal executives. Under the English Legal Services Act 2007, “lawyer” is not a protected title. In other jurisdictions, like the United States, there are strict restrictions on who may call themselves a lawyer, with paralegals and patent agents generally disallowed.^[6][7][5]

Responsibilities[edit]

In most countries, particularly civil law countries, there has been a tradition of giving many legal tasks to a variety of civil law notaries, clerks, and scriveners.^[8][9] These countries do not have “lawyers” in the American sense, insofar as that term refers to a single type of general-purpose legal services provider;^[10] rather, their legal professions consist of a large number of different kinds of law-trained persons, known as jurists, some of whom are advocates who are licensed to practice in the courts.^[11][12][13] It is difficult to formulate accurate generalizations that cover all the countries with multiple legal professions because each country has traditionally had its own peculiar method of dividing up legal work among all its different types of legal professionals.^[14]

Notably, England, the mother of the common law jurisdictions, emerged from the Middle Ages with similar complexity in its legal professions, but then evolved by the 19th century to a single division between barristers and solicitors. An equivalent division developed between advocates and procurators in some civil law countries; these two types did not always monopolize the practice of law, in that they coexisted with civil law notaries.^[15][16][17]

Several countries that originally had two or more legal professions have since fused or united their professions into a single type of lawyer.^{[18][19][20][21]} Most countries in this category are common law countries, though France, a civil law country, merged its jurists in 1990 and 1991 in response to Anglo-American competition.^[22] In countries with fused professions, a lawyer is usually permitted to carry out all or nearly all the responsibilities listed below.

Oral argument in the courts[edit]

Oral arguments being made before the New York Court of Appeals.

Arguing a client’s case before a judge or jury in a court of law is the traditional province of the barrister in England and Australia,^[23] and of advocates in some civil law jurisdictions.^[24] However, the boundary between barristers and solicitors has evolved. In England today, the barrister monopoly covers only appellate courts, and barristers must compete directly with solicitors in many trial courts.^[25] In countries like the United States, which have fused legal professions, there are trial lawyers who specialize in trying cases in court, but trial lawyers do not have a legal monopoly like barristers. In some countries, litigants have the option of arguing pro se, or on their own behalf. It is common for litigants to appear unrepresented before certain courts like small claims courts; indeed, many such courts do not allow lawyers to speak for their clients, in an effort to save money for all participants in a small case.^[26] In other countries, like Venezuela, no one may appear before a judge unless represented by a lawyer.^[27] The advantage of the latter regime is that lawyers are familiar with the court’s customs and procedures, and make the legal system more efficient for all involved. Unrepresented parties often damage their own credibility or slow the court down as a result of their inexperience.^[28][29]

Research and drafting of court papers

Insurance companies may provide any combination of insurance types, but are often classified into three groups:^[58]

• Life insurance companies, that provide life insurance, annuities and pensions products and bear similarities to asset management businesses^[58]
• Non-life or property/casualty insurance companies, which provides other types of insurance.
• Health insurance companies, which sometimes provide life insurance or employee benefits as well

General insurance companies can be further divided into these sub categories.

• Standard lines
• Excess lines

In most countries, life and non-life insurers are subject to different regulatory regimes and different tax and accounting rules. The main reason for the distinction between the two types of company is that life, annuity, and pension business is long-term in nature – coverage for life assurance or a pension can cover risks over many decades. By contrast, non-life insurance cover usually covers a shorter period, such as one year.

Mutual versus proprietary[edit]

Insurance companies are commonly classified as either mutual or proprietary companies.^[59] Mutual companies are owned by the policyholders, while shareholders (who may or may not own policies) own proprietary insurance companies.

Demutualization of mutual insurers to form stock companies, as well as the formation of a hybrid known as a mutual holding company, became common in some countries, such as the United States, in the late 20th century. However, not all states permit mutual holding companies.

Reinsurance companies[edit]

Reinsurance companies are insurance companies that provide policies to other insurance companies, allowing them to reduce their risks and protect themselves from substantial losses.^[60] The reinsurance market is dominated by a few large companies with huge reserves. A reinsurer may also be a direct writer of insurance risks as well.

Captive insurance companies[edit]

Captive insurance companies can be defined as limited-purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups. This definition can sometimes be extended to include some of the risks of the parent company’s customers. In short, it is an in-house self-insurance vehicle. Captives may take the form of a “pure” entity, which is a 100% subsidiary of the self-insured parent company; of a “mutual” captive, which insures the collective risks of members of an industr); and of an “association” captive, which self-insures individual risks of the members of a professional, commercial or industrial association. Captives represent commercial, economic and tax advantages to their sponsors because of the reductions in costs they help create and for the ease of insurance risk management and the flexibility for cash flows they generate. Additionally, they may provide coverage of risks which is neither available nor offered in the traditional insurance market at reasonable prices.

The types of risk that a captive can underwrite for their parents include property damage, public and product liability, professional indemnity, employee benefits, employers’ liability, motor and medical aid expenses. The captive’s exposure to such risks may be limited by the use of reinsurance.

Captives are becoming an increasingly important component of the risk management and risk financing strategy of their parent. This can be understood against the following background:

• Heavy and increasing premium costs in almost every line of coverage
• Difficulties in insuring certain types of fortuitous risk
• Differential coverage standards in various parts of the world
• Rating structures which reflect market trends rather than individual loss experience
• Insufficient credit for deductibles or loss control efforts

Other forms[edit]

Other possible forms for an insurance company include reciprocals, in which policyholders reciprocate in sharing risks, and Lloyd’s organizations.^[61]

Admitted versus non-admitted[edit]

Admitted insurance companies are those in the United States that have been admitted or licensed by the state licensing agency. The insurance they provide is called admitted insurance. Non-admitted companies have not been approved by the state licensing agency, but are allowed to provide insurance under special circumstances when they meet an insurance need that admitted companies cannot or will not meet.^[62]

Insurance consultants[edit]

There are also companies known as “insurance consultants”. Like a mortgage broker, these companies are paid a fee by the customer to shop around for the best insurance policy among many companies. Similar to an insurance consultant, an “insurance broker” also shops around for the best insurance policy among many companies. However, with insurance brokers, the fee is usually paid in the form of commission from the insurer that is selected rather than directly from the client.

Neither insurance consultants nor insurance brokers are insurance companies and no risks are transferred to them in insurance transactions. Third party administrators are companies that perform underwriting and sometimes claims handling services for insurance companies. These companies often have special expertise that the insurance companies do not have.

Financial stability and rating[edit]

The financial stability and strength of an insurance company is a consideration when buying an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, a more financially stable insurance carrier reduces the risk of the insurance company becoming insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool or other arrangements with less attractive payouts for losses). A number of independent rating agencies provide information and rate the financial viability of insurance companies.

Insurance companies are rated by various agencies such as AM Best. The ratings include the company’s financial strength, which measures its ability to pay claims. It also rates financial instruments issued by the insurance company, such as bonds, notes, and securitization products.

Across the world[edit]

Advanced economies account for the bulk of the global insurance industry. According to Swiss Re, the global insurance market wrote $6.287 trillion in direct premiums in 2020.^[63] (“Direct premiums” means premiums written directly by insurers before accounting for ceding of risk to reinsurers.) As usual, the United States was the country with the largest insurance market with $2.530 trillion (40.3%) of direct premiums written, with the People’s Republic of China coming in second at only $574 billion (9.3%), Japan coming in third at $438 billion (7.1%), and the United Kingdom coming in fourth at $380 billion (6.2%).^[63] However, the European Union‘s single market is the actual second largest market, with 18 percent market share.^[63]

Regulatory differences[edit]

In the United States, insurance is regulated by the states under the McCarran–Ferguson Act, with “periodic proposals for federal intervention”, and a nonprofit coalition of state insurance agencies called the National Association of Insurance Commissioners works to harmonize the country’s different laws and regulations.^[64] The National Conference of Insurance Legislators (NCOIL) also works to harmonize the different state laws.^[65]

In the European Union, the Third Non-Life Directive and the Third Life Directive, both passed in 1992 and effective 1994, created a single insurance market in Europe and allowed insurance companies to offer insurance anywhere in the EU (subject to permission from authority in the head office) and allowed insurance consumers to purchase insurance from any insurer in the EU.^[66] As far as insurance in the United Kingdom, the Financial Services Authority took over insurance regulation from the General Insurance Standards Council in 2005;^[67] laws passed include the Insurance Companies Act 1973 and another in 1982,^[68] and reforms to warranty and other aspects under discussion as of 2012.^[69]

The insurance industry in China was nationalized in 1949 and thereafter offered by only a single state-owned company, the People’s Insurance Company of China, which was eventually suspended as demand declined in a communist environment. In 1978, market reforms led to an increase in the market and by 1995 a comprehensive Insurance Law of the People’s Republic of China^[70] was passed, followed in 1998 by the formation of China Insurance Regulatory Commission (CIRC), which has broad regulatory authority over the insurance market of China.^[71]

In India IRDA is insurance regulatory authority. As per the section 4 of IRDA Act 1999, Insurance Regulatory and Development Authority (IRDA), which was constituted by an act of parliament. National Insurance Academy, Pune is apex insurance capacity builder institute promoted with support from Ministry of Finance and by LIC, Life & General Insurance companies.

In 2017, within the framework of the joint project of the Bank of Russia and Yandex, a special check mark (a green circle with a tick and ‘Реестр ЦБ РФ’ (Unified state register of insurance entities) text box) appeared in the search for Yandex system, informing the consumer that the company’s financial services are offered on the marked website, which has the status of an insurance company, a broker or a mutual insurance association.^[72]

Controversies[edit]

Does not reduce the risk[edit]

Insurance is just a risk transfer mechanism wherein the financial burden which may arise due to some fortuitous event is transferred to a bigger entity (i.e., an insurance company) by way of paying premiums. This only reduces the financial burden and not the actual chances of happening of an event. Insurance is a risk for both the insurance company and the insured. The insurance company understands the risk involved and will perform a risk assessment when writing the policy.

As a result, the premiums may go up if they determine that the policyholder will file a claim. However, premiums might reduce if the policyholder commits to a risk management program as recommended by the insurer.^[73] It is therefore important that insurers view risk management as a joint initiative between policyholder and insurer since a robust risk management plan minimizes the possibility of a large claim for the insurer while stabilizing or reducing premiums for the policyholder.

If a person is financially stable and plans for life’s unexpected events, they may be able to go without insurance. However, they must have enough to cover a total and complete loss of employment and of their possessions. Some states will accept a surety bond, a government bond, or even making a cash deposit with the state.^{[citation needed]}

Moral hazard[edit]

An insurance company may inadvertently find that its insureds may not be as risk-averse as they might otherwise be (since, by definition, the insured has transferred the risk to the insurer), a concept known as moral hazard. This ‘insulates’ many from the true costs of living with risk, negating measures that can mitigate or adapt to risk and leading some to describe insurance schemes as potentially maladaptive.^[74]

Complexity of insurance policy contracts[edit]

9/11 was a major insurance loss, but there were disputes over the World Trade Center‘s insurance policy.

Insurance policies can be complex and some policyholders may not understand all the fees and coverages included in a policy. As a result, people may buy policies on unfavorable terms. In response to these issues, many countries have enacted detailed statutory and regulatory regimes governing every aspect of the insurance business, including minimum standards for policies and the ways in which they may be advertised and sold.

For example, most insurance policies in the English language today have been carefully drafted in plain English; the industry learned the hard way that many courts will not enforce policies against insureds when the judges themselves cannot understand what the policies are saying. Typically, courts construe ambiguities in insurance policies against the insurance company and in favor of coverage under the policy.

Many institutional insurance purchasers buy insurance through an insurance broker. While on the surface it appears the broker represents the buyer (not the insurance company), and typically counsels the buyer on appropriate coverage and policy limitations, in the vast majority of cases a broker’s compensation comes in the form of a commission as a percentage of the insurance premium, creating a conflict of interest in that the broker’s financial interest is tilted toward encouraging an insured to purchase more insurance than might be necessary at a higher price. A broker generally holds contracts with many insurers, thereby allowing the broker to “shop” the market for the best rates and coverage possible.

Insurance may also be purchased through an agent. A tied agent, working exclusively with one insurer, represents the insurance company from whom the policyholder buys (while a free agent sells policies of various insurance companies). Just as there is a potential conflict of interest with a broker, an agent has a different type of conflict. Because agents work directly for the insurance company, if there is a claim the agent may advise the client to the benefit of the insurance company. Agents generally cannot offer as broad a range of selection compared to an insurance broker.

An independent insurance consultant advises insureds on a fee-for-service retainer, similar to an attorney, and thus offers completely independent advice, free of the financial conflict of interest of brokers or agents. However, such a consultant must still work through brokers or agents in order to secure coverage for their clients.

Limited consumer benefits[edit]

In the United States, economists and consumer advocates generally consider insurance to be worthwhile for low-probability, catastrophic losses, but not for high-probability, small losses. Because of this, consumers are advised to select high deductibles and to not insure losses which would not cause a disruption in their life. However, consumers have shown a tendency to prefer low deductibles and to prefer to insure relatively high-probability, small losses over low-probability, perhaps due to not understanding or ignoring the low-probability risk. This is associated with reduced purchasing of insurance against low-probability losses, and may result in increased inefficiencies from moral hazard.^[75]

Redlining[edit]

Redlining is the practice of denying insurance coverage in specific geographic areas, supposedly because of a high likelihood of loss, while the alleged motivation is unlawful discrimination. Racial profiling or redlining has a long history in the property insurance industry in the United States. From a review of industry underwriting and marketing materials, court documents, and research by government agencies, industry and community groups, and academics, it is clear that race has long affected and continues to affect the policies and practices of the insurance industry.^[76]

In July 2007, the US Federal Trade Commission (FTC) released a report presenting the results of a study concerning credit-based insurance scores in automobile insurance. The study found that these scores are effective predictors of risk. It also showed that African-Americans and Hispanics are substantially overrepresented in the lowest credit scores, and substantially underrepresented in the highest, while Caucasians and Asians are more evenly spread across the scores. The credit scores were also found to predict risk within each of the ethnic groups, leading the FTC to conclude that the scoring models are not solely proxies for redlining. The FTC indicated little data was available to evaluate benefit of insurance scores to consumers.^[77] The report was disputed by representatives of the Consumer Federation of America, the National Fair Housing Alliance, the National Consumer Law Center, and the Center for Economic Justice, for relying on data provided by the insurance industry.^[78]

All states have provisions in their rate regulation laws or in their fair trade practice acts that prohibit unfair discrimination, often called redlining, in setting rates and making insurance available.^[79]

In determining premiums and premium rate structures, insurers consider quantifiable factors, including location, credit scores, gender, occupation, marital status, and education level. However, the use of such factors is often considered to be unfair or unlawfully discriminatory, and the reaction against this practice has in some instances led to political disputes about the ways in which insurers determine premiums and regulatory intervention to limit the factors used.

An insurance underwriter’s job is to evaluate a given risk as to the likelihood that a loss will occur. Any factor that causes a greater likelihood of loss should theoretically be charged a higher rate. This basic principle of insurance must be followed if insurance companies are to remain solvent.^{[citation needed]} Thus, “discrimination” against (i.e., negative differential treatment of) potential insureds in the risk evaluation and premium-setting process is a necessary by-product of the fundamentals of insurance underwriting.^{[citation needed]} For instance, insurers charge older people significantly higher premiums than they charge younger people for term life insurance. Older people are thus treated differently from younger people (i.e., a distinction is made, discrimination occurs). The rationale for the differential treatment goes to the heart of the risk a life insurer takes: older people are likely to die sooner than young people, so the risk of loss (the insured’s death) is greater in any given period of time and therefore the risk premium must be higher to cover the greater risk.^{[citation needed]} However, treating insureds differently when there is no actuarially sound reason for doing so is unlawful discrimination.

Insurance patents[edit]

This article needs to be updated. Please help update this article to reflect recent events or newly available information. (January 2018)

New assurance products can now be protected from copying with a business method patent in the United States.

A recent example of a new insurance product that is patented is Usage Based auto insurance. Early versions were independently invented and patented by a major US auto insurance company, Progressive Auto Insurance (U.S. Patent 5,797,134) and a Spanish independent inventor, Salvador Minguijon Perez.^[80]

Many independent inventors are in favor of patenting new insurance products since it gives them protection from big companies when they bring their new insurance products to market. Independent inventors account for 70% of the new U.S. patent applications in this area.

Many insurance executives are opposed to patenting insurance products because it creates a new risk for them. The Hartford insurance company, for example, recently had to pay $80 million to an independent inventor, Bancorp Services, in order to settle a patent infringement and theft of trade secret lawsuit for a type of corporate owned life insurance product invented and patented by Bancorp.

There are currently about 150 new patent applications on insurance inventions filed per year in the United States. The rate at which patents have been issued has steadily risen from 15 in 2002 to 44 in 2006.^[81]

The first insurance patent to be granted was^[82] including another example of an application posted was.^[83] It was posted on 6 March 2009. This patent application describes a method for increasing the ease of changing insurance companies.^[84]

Insurance on demand[edit]

Insurance on demand (also IoD) is an insurance service that provides clients with insurance protection when they need, i.e. only episodic rather than on 24/7 basis as typically provided by traditional insurers (e.g. clients can purchase an insurance for one single flight rather than a longer-lasting travel insurance plan).

Insurance industry and rent-seeking[edit]

Certain insurance products and practices have been described as rent-seeking by critics.^{[citation needed]} That is, some insurance products or practices are useful primarily because of legal benefits, such as reducing taxes, as opposed to providing protection against risks of adverse events.

Religious concerns[edit]

Muslim scholars have varying opinions about life insurance. Life insurance policies that earn interest (or guaranteed bonus/NAV) are generally considered to be a form of riba (usury) and some consider even policies that do not earn interest to be a form of gharar (speculation). Some argue that gharar is not present due to the actuarial science behind the underwriting.^{[85][better source needed]} Jewish rabbinical scholars also have expressed reservations regarding insurance as an avoidance of God’s will but most find it acceptable in moderation.^[86]

Some Christians believe insurance represents a lack of faith^[87][88] and there is a long history of resistance to commercial insurance in Anabaptist communities (Mennonites, Amish, Hutterites, Brethren in Christ) but many participate in community-based self-insurance programs that spread risk within their communities.^[89][90][91]

Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

An entity which provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured. The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of a payment to the insurer (a premium) in exchange for the insurer’s promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms. Furthermore, it usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.

The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured, or their designated beneficiary or assignee. The amount of money charged by the insurer to the policyholder for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster. A mandatory out-of-pocket expense required by an insurance policy before an insurer will pay a claim is called a deductible (or if required by a health insurance policy, a copayment). The insurer may hedge its own risk by taking out reinsurance, whereby another insurance company agrees to carry some of the risks, especially if the primary insurer deems the risk too large for it to carry.

History[edit]

Early methods[edit]

Merchants have sought methods to minimize risks since early times. Pictured, Governors of the Wine Merchant’s Guild by Ferdinand Bol, c. 1680.

Methods for transferring or distributing risk were practiced by Babylonian, Chinese and Indian traders as long ago as the 3rd and 2nd millennia BC, respectively.^[1][2] Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel capsizing.

Codex Hammurabi Law 238 (c. 1755–1750 BC) stipulated that a sea captain, ship-manager, or ship charterer that saved a ship from total loss was only required to pay one-half the value of the ship to the ship-owner.^[3][4][5] In the Digesta seu Pandectae (533), the second volume of the codification of laws ordered by Justinian I (527–565), a legal opinion written by the Roman jurist Paulus in 235 AD was included about the Lex Rhodia (“Rhodian law”). It articulates the general average principle of marine insurance established on the island of Rhodes in approximately 1000 to 800 BC, plausibly by the Phoenicians during the proposed Dorian invasion and emergence of the purported Sea Peoples during the Greek Dark Ages (c. 1100–c. 750).^[6][7][8]

The law of general average is the fundamental principle that underlies all insurance.^[7] In 1816, an archeological excavation in Minya, Egypt produced a Nerva–Antonine dynasty-era tablet from the ruins of the Temple of Antinous in Antinoöpolis, Aegyptus. The tablet prescribed the rules and membership dues of a burial society collegium established in Lanuvium, Italia in approximately 133 AD during the reign of Hadrian (117–138) of the Roman Empire.^[7] In 1851 AD, future U.S. Supreme Court Associate Justice Joseph P. Bradley (1870–1892 AD), once employed as an actuary for the Mutual Benefit Life Insurance Company, submitted an article to the Journal of the Institute of Actuaries. His article detailed an historical account of a Severan dynasty-era life table compiled by the Roman jurist Ulpian in approximately 220 AD that was also included in the Digesta.^[9]

Concepts of insurance has been also found in 3rd century BC Hindu scriptures such as Dharmasastra, Arthashastra and Manusmriti.^[10] The ancient Greeks had marine loans. Money was advanced on a ship or cargo, to be repaid with large interest if the voyage prospers. However, the money would not be repaid at all if the ship were lost, thus making the rate of interest high enough to pay for not only for the use of the capital but also for the risk of losing it (fully described by Demosthenes). Loans of this character have ever since been common in maritime lands under the name of bottomry and respondentia bonds.^[11]

The direct insurance of sea-risks for a premium paid independently of loans began in Belgium about 1300 AD.^[11]

Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. The first known insurance contract dates from Genoa in 1347. In the next century, maritime insurance developed widely, and premiums were varied with risks.^[12] These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance.

The earliest known policy of life insurance was made in the Royal Exchange, London, on the 18th of June 1583, for £383, 6s. 8d. for twelve months on the life of William Gibbons.^[11]

Modern methods[edit]

Insurance became far more sophisticated in Enlightenment-era Europe, where specialized varieties developed.

Lloyd’s Coffee House was the first organized market for marine insurance.

Property insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses. The devastating effects of the fire converted the development of insurance “from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren‘s inclusion of a site for “the Insurance Office” in his new plan for London in 1667.”^[13] A number of attempted fire insurance schemes came to nothing, but in 1681, economist Nicholas Barbon and eleven associates established the first fire insurance company, the “Insurance Office for Houses”, at the back of the Royal Exchange to insure brick and frame homes. Initially, 5,000 homes were insured by his Insurance Office.^[14]

At the same time, the first insurance schemes for the underwriting of business ventures became available. By the end of the seventeenth century, London’s growth as a centre for trade was increasing due to the demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house, which became the meeting place for parties in the shipping industry wishing to insure cargoes and ships, including those willing to underwrite such ventures. These informal beginnings led to the establishment of the insurance market Lloyd’s of London and several related shipping and insurance businesses.^[15]

Leaflet promoting the National Insurance Act 1911

Life insurance policies were taken out in the early 18th century. The first company to offer life insurance was the Amicable Society for a Perpetual Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen.^[16][17] Upon the same principle, Edward Rowe Mores established the Society for Equitable Assurances on Lives and Survivorship in 1762.

It was the world’s first mutual insurer and it pioneered age based premiums based on mortality rate laying “the framework for scientific insurance practice and development” and “the basis of modern life assurance upon which all life assurance schemes were subsequently based.”^[18]

In the late 19th century “accident insurance” began to become available.^[19] The first company to offer accident insurance was the Railway Passengers Assurance Company, formed in 1848 in England to insure against the rising number of fatalities on the nascent railway system.

The first international insurance rule was the York Antwerp Rules (YAR) for the distribution of costs between ship and cargo in the event of general average. In 1873 the “Association for the Reform and Codification of the Law of Nations”, the forerunner of the International Law Association (ILA), was founded in Brussels. It published the first YAR in 1890, before switching to the present title of the “International Law Association” in 1895.^[20][21]

By the late 19th century governments began to initiate national insurance programs against sickness and old age. Germany built on a tradition of welfare programs in Prussia and Saxony that began as early as in the 1840s. In the 1880s Chancellor Otto von Bismarck introduced old age pensions, accident insurance and medical care that formed the basis for Germany’s welfare state.^[22][23] In Britain more extensive legislation was introduced by the Liberal government in the 1911 National Insurance Act. This gave the British working classes the first contributory system of insurance against illness and unemployment.^[24] This system was greatly expanded after the Second World War under the influence of the Beveridge Report, to form the first modern welfare state.^[22][25]

In 2008, the International Network of Insurance Associations (INIA), then an informal network, became active and it has been succeeded by the Global Federation of Insurance Associations (GFIA), which was formally founded in 2012 to aim to increase insurance industry effectiveness in providing input to international regulatory bodies and to contribute more effectively to the international dialogue on issues of common interest. It consists of its 40 member associations and 1 observer association in 67 countries, which companies account for around 89% of total insurance premiums worldwide.^[26]

Principles

What is Home Insurance – Features & Advantages

Home insurance is an insurance policy that covers the costs and damage to your home or any insured property. It is a form of property insurance and one of the several types of general insurance products.

Home Insurance – Coverage & Exclusions

Home insurance is also called homeowner’s insurance. It safeguards your bungalow/apartment/rented flat/owned house/built home against potential risks. It covers the costs of damages due to any unfortunate event. Home insurance can be claimed for damage due to the following causes:

• Natural calamities such as windstorms, hails, fire or lightning
• Man-made problems like riots, theft, vandalism, or property destruction due to any civil commotion
• Damage due to rail or road constructions
• Collision of airplanes or any vehicle (not your own)
• Explosion or smoke

Coverage offered under Home Insurance Policy

The home insurance policy covers various kinds of damage. For example, damaged electric lines/wires, water pipelines, or structure damage. It also provides coverage for broken windows/doors/floors/walls. Not only the house but also covers for the loss and damage to the contents of the house. It can be broadly divided into four kinds of costs on the insured property as below:

• Interior damage costs
• Exterior damage expenses
• Loss/damage of personal assets/belongings from a house
• Coverage for physical injuries that may occur while on the damaged property

Home insurance policies may differ in what coverage they provide depending on certain factors. It varies according to the residence type (rented/owned) and size of the residence. Other characteristics like age, place of residence, replacement value, and location as well as the cost of belongings also matter. Your claim history or crime rate in the area can also matter. Finally, it depends on you what kind of coverage you choose. It is your choice about the amount of premium and deductible you are ready to pay. The deductible is the amount you have to pay before making the claim if the premium amount falls short of. When the deductible is high, the premium is less and vice-versa.

Exclusions

Although home insurance covers both natural and man-made causes, there are few accidents that go uncovered. For instance, there is no coverage for intentional damages, damages due to neglect, war situations, or ‘Acts of God’. These count as exclusions. Listing a few of them below:

• ‘Acts of God’ include calamities like floods and earthquakes are excluded in a home insurance policy. Some providers may come with additional coverages for these disasters in specific cases or customized policies
• Damage occurring due to low or zero maintenance and neglect of the property
• No cover for damage due to termites, rodents, birds, rot, molds
• Although there can be cover for fire and smoke in some circumstances, it doesn’t cover up smoke arising from industrial or agricultural operations
• If any damage is done by a home member intentionally or accidentally. For example, a collision with one’s own vehicle will not be covered under a home insurance policy
• Any destruction to the property under Ordinance of Law or court’s order
• Damage due to nuclear hazards or war in the country

Why should you have a Home Insurance Policy – Benefits

You should have a home insurance policy because it covers the financial loss. You may also have to bear the damage to property and its belongings under conditions not controlled by you. The benefits of a home insurance policy are:

• You can get monetary aid for repair and damage control due to unfortunate events
• If a third party causes damage, you can claim insurance without getting into a legal rift
• It is easier to get a mortgage (home loan) for repair/reconstruction/expansion if there is property insurance
• The costs of loss of home’s belongings and content can also be covered up. Home belongings like appliances, furnishings, furniture, gadgets, or jewelry
• Coverage is there not only for damages due to accidents or calamities but also due to theft, robbery, or burglary
• There are types of home insurance policies that are designed to cater to specific requirements. These policies include Landlord’s Insurance or Tenant insurance. The landlord can claim the landlord’s insurance when the tenant (public liability) does damage. Also, when there is a loss of tenant’s payment (rent) due to other reasons. Similarly, the tenant can get insurance for his/her own belongings in a rented flat

How to Claim Home Insurance?

In order to claim home insurance money, you may need documents and evidence for the damage. Documents like police FIR/investigation report and statements from fire brigades/authorized organizations/residential society. Also, medical officer’s certificate of death or disability if required. Apart from that, you may need court summons, repair estimates, invoice/proof of owned contents, etc.

You have to pay the deductible for making a home insurance claim. The insurance amount you get will depend on the type of policy you have. It depends if your coverage provision will be based on the actual cash value or the replacement value. It is explained further below:

• Actual cash value gives the present value of a house/house item. It deducts the depreciation from the cost of the item when it was new. Depreciation is the loss of value of an item/property due to the age and condition of the item. Depreciation calculation may depend on the insured item and the insurance provider

Suppose a television set is insured and is damaged/stolen due to robbery. The insurance amount will be the coverage of the cost of the TV based on its reduced value at the time of the claim

• Replacement value coverage means it will cover the actual cost of the damaged property or an item. It will provide the insurance amount to replace it

Let’s assume the damaged/lost television set is 3 years old and coverage is as per its replacement value. Then, one can claim the insurance amount as the cost of the TV set at the time of its purchase. The insurer shall cover the cost of buying/replacing with a new TV set of similar quality in place of the lost/damaged one

Wrapping it up:

In today’s unprecedented times, having a home insurance policy is a must. It always helps to guard your property against unpredictable damage and associated costs. It is important to check what costs are covered and the exclusions before making a decision. You can take more than one insurance to get discounts. Alternatively, you can agree to share the costs of repairs to lower the premiums. If you take insurance from more than one company, they can compensate on a proportionate basis when you claim the amount. Although you can rent the insured house, if you sell the property, there is automatic cancelation of the home insurance policy.