The word insurance refers to any agreement where a person pays another person or business to indemnify the safety, but to be more precise, pay for the replacement of any such personal property if said possession is lost, destroyed, or damaged in some other way other then the neglect or willful destruction of the property by said owner. There is insurance for just about anything, insurance is generally divided into four areas; vehicle, property, health, and life insurance.
The earliest form of insurance can be seen when kings and criminals ruled the kingdom. In this day in age, it was more a form of blackmail rather than a security. Nonetheless, it was security and business owners, as well as home owners relied heavily on it. It was the ruler?s word that the businesses would be protected from being damaged by criminals and the like if they supplied then with a portion of the profits of the business. Knowing the rulers, these were no small cuts. The business owners did pay it and had soldiers at their business residences for protection. This is why it would not be uncommon to find the businesses owner actually move into where they work. They wanted the ultimate form of protection.
The earliest known form of a true form of a contractual insurance agreement came as early as 3 or 2 millennia B.C. These simple agreements stated that a merchant, trader or transporter of goods would guarantee the safety of said cargo or shipment. If the goods were lost, the transporter of said goods would pay either the sender or receiver for the loss or both. Other insurance contracts were simply a fee paid by the carrier so that of the goods were lost then the fee would cover said loss of goods. These agreements were usually done by a verbal agreement, but they were later back up by laws etched in stone and papyrus.
As human society became more modern, many traders would hire retired soldiers, i.e. mercenaries, to help shepherd their goods from place to place. These men could in some ways be called the first security guards of human society. But it was hazardous and difficult work, but for the soldiers of fortune of that time it was some of the best work one could get.
Long after those times, you come into the modern age of insurance. You can get virtually anything insured. This is seen to the extent of a purchase of an item with the ability to purchase insurance in case it gets damaged. This is popularly seen when you purchase computers, TV?s and other higher end items that are usually expensive to replace without aid.
In 1732, located in Charleston, South Carolina, the first insurance company was born in the United States of America. This company provided fire insurance and was aided along by Benjamin Franklin. They started off not insuring building that was partial to fire damage such as warehouses and wooden houses. They also were the first to teach about fire safety and prevention. They would often refer others to learn about certain fire hazards.
As you can see, insurance has come a very long way and it continues to be part of our everyday lives. With the cost of living and property we own; it is true for the general public that you can?t live without insurance. In many areas, insurance is required on some items.
Graham McKenzie is the syndication coordinator a leading South African Insurance information website, which amongst others specialises inCar Insurance.
Tags: car insurance, finance, Household Insurance, insurance, life insurance, money, personal finance