LAW OF INSURANCE NOTES
Unit 1: Introduction 1.1 The history and functions of insurance Insurance is a financial mechanism that helps individuals and organizations manage risk by transferring it to an insurance company in exchange for payment of a premium. Insurance has a long history, dating back to ancient civilizations such as Babylon and China, where merchants would pool their resources to reduce the risk of losing goods during transport. Over time, insurance has evolved to include a wide range of products and services, including health insurance, life insurance, property insurance, liability insurance, and more. The functions of insurance include: 1. Risk Management: Insurance helps individuals and organizations manage risk by transferring it to an insurance company. This helps to protect against financial losses due to unforeseen events such as accidents, illness, or natural disasters. 2. Protection of Assets: Insurance can help pr...