**CORE ELEMENTS OF INSURANCE:** The insurance process involves various elements, including assets, risk, hazard, peril, and risk pooling.  1. **Asset**   An asset is defined as anything that has economic value and benefits its owner. It must possess two features:    - **Economic Value:** This can arise from:      - **Income Generation:** Productive assets generate income, like a machine or livestock. Healthy workers are also valuable assets.      - **Serving Needs:** Assets can fulfill needs, like a refrigerator preserving food or a car providing transportation.     - **Scarcity and Ownership:** While air and sunlight are invaluable, they are not classified as assets because they are abundant and not owned. **Insurance of Assets:**   Insurance protects against financial losses from unexpected events, but not wear and tear. For instance, an earthquake will damage a home re...

  **Origins of Insurance:** The concept of insurance began at Lloyd’s Coffee House in London. The first life insurance company in the world was the Amicable Society for Perpetual Assurance, established in 1706 .  **Insurance History in India:** Oriental Life Insurance Co. Ltd - 1818 Triton Insurance Co. Ltd - 1850 Bombay Mutual Assurance Society Ltd National Insurance Company Ltd Insurance Act - 1938 Nationalisation of Life Insurance - 1956, leading to the formation of the Life Insurance Corporation of India (LIC) on September 1, 1956. General Insurance Business Nationalisation Act (GIBNA) - 1972 marked the nationalisation of general insurance. The Insurance Regulatory & Development Authority of India (IRDA) was established in 1999 and came into effect in April 2000; it was later renamed IRDAI in 2004. The insurance ways of reducing the burden: Insurance reduces the burden in two main ways: 1. **Primary Risk of Burden** 2. **Secondary Risk of Burden:** Setting aside reserv...