Auto Insurance

Vehicle insurance (also known as auto insurance or car insurance) is insurance for cars, trucks, motorcycles and other vehicles off-road. Primary use is to provide financial protection against physical damage and / or bodily injury resulting from collisions and against liability that could also arise from this incident. And specific conditions vary from vehicle insurance with legal regulations in each area. To a lesser degree vehicle insurance may offer as well as financial protection against theft of the vehicle, and possibly damage the vehicle and sustained other things of crashes, such as lock and damage to the collision fixed objects.

Principle of Insurance

Insurance includes pool funds from many insured entities known as the (exposure) to pay for the losses that may be incurred by some. Thus, the insured entities protected from risk for a fee, with the fee being dependent on the frequency and severity of the event occurs. In order to be at risk for insurance, it should be insured against the risk meet certain characteristics. Financial insurance broker is a commercial enterprise and a large part of the financial services industry, but individual entities can also self-locking through the provision of capital to cover potential losses in the future.

Source: Wikipedia.org

Medieval and later Forex

During the 15th century, a bank was required to the Medici family at foreign locations for the exchange of currencies to act on behalf of the textile merchants.To facilitate trade and the establishment of the Bank Nostro (translated from the Italian - "ours"). The account book that contains two entrances columns show the amounts of foreign and local currencies, information concerning the maintenance of an account with a foreign bank. During the 17th century (or 18), Amsterdam maintained Forex active market. In 1704, foreign exchange took between agents acting in the interests of the Kingdom of England and the Country of Holland.

Early Methods of Insurance

The methods to move or risk distribution by the Chinese and Babylonian traders long ago as 3rd and 2nd  millennia BC  respectively. The Chinese merchants traveling treacherous river rapids redistribute their wares across many vessels to limit losses caused by the sinking of any one's ship. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by the early trader’s time to sail the Mediterranean Sea. If the merchant received a loan to fund his shipment, he would pay an additional bank guarantee in exchange for the lender to cancel the loan must be stolen shipment, or lost at sea.

At some stage of the millennium 1ST BC, Rhodes residents create a "general average". This allowed traders to pay and secure their goods being shipped together as a group. The premiums collected will be used to repay any dealer who had been abandoned during the transport of goods, both to restrain intrusion or sink-age

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Separate insurance contracts (i.e, insurance policies not bundled with loans or other types of contracts) were invented in Genoa in the 14th century, as well as insurance pools backed by pledges of landed estates. Date of the first well-known insurance from Genoa in the 1347, and in the next century marine insurance placed on a large scale and was intuitively insurance premiums vary with the risks. These new insurance contracts allowed insurance to be separated from the investment, and the separation of the roles for the first time proved useful in marine insurance.

Source: wikipedia.org

What is Insurance?

Insurance is a mean of protection from economic or financial loss. It provide protection from the risk to uncertain loss. There are few insurance provider which are know as insurer, insurance company or insurance carrier. Similarly there are some persons/ individual who buy insurance known as insured or policyholder. The insurance transaction involves the insured assuming a guarantee that they will compensate in case of loss. The loss is not always is term of financial, it is according to the insured.
Every insurance company has its own insurance policy, which shows how much benefit one can get. Once a person goes in an insurance company, he/she must read its insurance policy in detail. It contains the terms and conditions/ circumstances under which the insured will be compensated. Company charge some amount from the person( insured) which is called premium. If insured faced some loss he will claim his insurance from insurer. In this way this system works.