History of the World Insurance And Insurance Indonesia

1. History of Insurance in the World

Around the year 2250 BC the Babylonians lived in the valley of the Euphrates and Tigris (now a region of Iraq), at the time when a shipowner requires funds to operate a boat or doing a trading business, he can borrow money from a merchant (creditor) with using the ship as collateral with the agreement that the owner of the vessel is exempt from paying its debts if the ship safely to the destination, in addition to a sum of money in return for the risks borne by the lender. These additional costs can be considered similar to "cash premium" which is known in the insurance now. In addition to the ship which is used as collateral, can also be used as collateral in the form of goods cargo (Cargo). Such transactions are called "RESPONDENT / A CONTRACT".

2. History of Insurance in Indonesia

Insurance business in Indonesia during Dutch colonial rule and our country at that time called the Netherlands East Indies. The existence of insurance in our country as a result of the success of the Dutch in the plantation sector and trade in the colonies. To ensure its survival, then the insurance is absolutely necessary. Thus pera.suransian efforts in Indonesia can be divided into two periods, namely the colonial period until 1942 and the period after World War II, or the time of independence. At the time of the Japanese occupation army for about three and a half years, almost no recorded history of the development. Insurance companies in the Dutch East Indies during colonial era it is:

The companies founded by the Dutch

The companies that are branch office of the insurance company headquartered in the Netherlands, the UK and in other countries. With a run monopoly system in the Dutch East Indies, the development of insurance in the Netherlands East Indies trade is limited to the activities and interests of the Dutch, British, and other European nations. And the role of insurance benefits have not been recognized by the public, especially by indigenous communities. This type of insurance has been introduced in the Dutch East Indies at that time was very limited and mostly consists of fire insurance and freight. Motor vehicle insurance still play a role, because the number of vehicles is still very little and only owned by the Dutch and other foreign nation. In colonial times not recorded a single insurance company. 

In addition to the Commercial code article 246, also in the Act - Act No. insurance. 2 Article 1 of 1992 mentioned the insurance or coverage is an agreement between two or more parties, where the insurer binds himself to the insured, by accepting the insurance premiums to provide reimbursement to the insured for loss, damage, or loss of expected benefits, or legal liability to third parties which may be suffered by the insured, arising from an uncertain events, or provide an event that payment is based on the death or life of an insured person.

In conventional insurance insurance company called the Insurer, while the people who buy the insurance product called the insured or the policy holder, the insured pays a sum of money called a premium to buy products that are provided by insurance companies. Insurance premiums paid by the insured to the insurance company income, in other words, the transfer of ownership occurs fund premiums from the insured to the insurance company. If the insured at risk in accordance with the stipulated in the contract of insurance, then the insurance company has to pay a sum of money called the sum assured to or are entitled to receive it. Conversely, if the insured until the end of the contract in which case the risk of not having insurance the contract ends, all the rights and obligations of both parties ended. From the above it can be concluded that the displacement of the financial risk in insurance terms is called the transfer of risk from the insured to the Insurer.

Example, when someone buys a home fire insurance policy to stay he would pay the money (premiums) that have been determined by the insurance company, at the same time the insurance company will bear the financial risk in the event of a fire on the residence. Another example in the life insurance, when someone buys a life insurance (term insuransce) with a contract period of 5 (five) years with a sum assured of 100 million dollars, then he must pay the premiums set by the insurance company (ie 500 thousand dollars) per year , meaning that if the insured dies during the above agreement, the heirs or assigns will earn money from the insurance company $ 100 million, but if the participants lived until the end of the agreement then he will not gain anything. Terms of the sharia, the transaction example above can be categorized as contract tabaduli (exchange or buying and selling), but flawed because there are elements of gharar (uncertainty), which is not clear when the policyholder will receive the sum assured as it is associated with the unfortunate person (actually years first, second or not at all to be alive at the end of the agreement).