We, who are in the insurance business, are very aware of the fact that many people are suspicious of insurance. They believe that insurance companies have as an aim to collect large amounts of money from the public, just to show profits on their balance sheets and please their shareholders. Generally, people do not like handing out an annual sum, when there is only a tiny possibility of it being returned.
In order to try and remove these doubts that the consumer has, we must go back to the origins of insurance, back in the 17th century, at the little coffeehouse of a Mr. Edward Lloyd, in London. There, London merchants and bankers met informally to do business. These financiers decided to offer insurance contracts to ship owning traders, and wrote their names under the specific amount of risk that they would accept in exchange for a certain payment, or premium. In the case that a ship did not arrive safely, the financiers would share the costs of the damage. The experiment was so successful, that by 1769, the Lloyd's group had become a formal group of underwriters, who formed the most important market for marine risks, until today.
Apart from the commercial, there is also a social point of view in the origins of insurance: if a number of people share a risk, the loss will be lesser for each one- it will be limited to the amount paid at the beginning the premium. In effect, it is as simple a concept as the idea of people helping each other. Since ancient times, communities have been pooling their resources to help individuals in need. The insurance company is merely the vehicle by which this can happen more formally.
Since the beginning of the concept of insurance, people have acquired all forms of property, including homes, vehicles, yachts, valuables, and have even formed their own businesses. The items that can be insured are now much more varied than at the time of Lloyd, and the trading ships, and life has become much more complicated, and there has developed a need for more organised and legally sound insurance contracts. However, the concept is in essence the same: people need protection for the eventuality that they lose their property, or for the possibility that the property is damaged and needs to be repaired. The best way to provide the funds, would be through the contribution of the community. Another development, since then, has been the need for new social and legal rules of the creation of a duty of care by one person to another, should the person's actions or omissions affect the other. This saw the need for a new kind of liability insurance, by which a person can ensure that, in the case he causes loss to another, through carelessness or negligence or mere lack of proper care, that innocent victim can be compensated.
Insurance, therefore, carries out a very important social role: it uses the funds contributed by each and every person to compensate the public for their losses. It is the vehicle by which people are now sharing the risk.
At Royal Crown Insurance Company, we are strong believers of the need for insurance the more people decide to take out an insurance policy, the more funds will be available to pay out claims. We will collect the premium from our clients every year, and we will put it into good use, because we firmly believe in fair and just compensation for those who will suffer the loss.
It is our aim to ensure that all our clients, and third parties who are affected by the actions of our clients, are compensated in the event of a loss. They should be awarded that exact amount which will provide them with total relief from a loss. It is often difficult to decide on the amount that is fair. For example, because of the increase in road traffic accidents in recent years, we often have to compensate victims for personal injuries, such as a broken leg or collar-bone. It is an awkward task to have to decide on the amount that is a proper compensation for such injuries. But, guided by the legal rules on the matter, we always strive to make sure that everyone receives a fair compensation.
Royal Crown Insurance is renowned for the integrity with which it settles its claims. It is our mission to carry out the social role of properly distributing the funds collected by our clients, to people who have suffered loss. We try to be fair and just, but also humanitarian in the way we determine the amount to be paid out. We also try to be as prompt as possible in doing this.
There is no need for anyone to be suspicious of the insurance company, and especially, Royal Crown Insurance Company. Our policies are very easy to read, contain no small-print, and our staff will explain all terms and conditions at any time. Our company will ensure that all your insurance needs are covered. Royal Crown Insurance is committed to maintaining the purest form of insurance, just as it was envisioned all those years ago collecting your small contribution in order to benefit those who need it!
