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The Insurance Code of the Philippines

(Presidential Decree No. 1460, as amended)

COMMENTS

Insurance defined

Insurance is an agreement to pay a certain sum of money to compensate for the loss resulting from some contingent event, in consideration of an immediate cash payment or a series of payments. The loss insured against may happen soon, may be long deferred, or may never happen. (Gephart, p. 1)

For the definition of insurance under the Insurance Code, see section two.

Historical origins of insurance

There could be no considerable development of insurance until society had progressed to  insurance until society had progressed to the stage in which (a) the family was definitely established with social obligation and rights, and (b) the individual as an individual was valued as a member of society.

Until the definite sex relations of the monogamous family were established, there could be fixed no definite obligations upon the different members of the family organization. However, in the monogamous family organization women and children assumed a position at once more definite and important than in the previous family organization. Affection and a sense of responsibility both operated to place definitely upon the husband the duty of caring for his wife and children. To a less degree only did he feel the obligation of caring for his parents and those of his wife. Thus the possible widow and orphan and infirm parent became a source of solicitude for the husband, who was urged by the definite family bond to make provision from his labor for their care and maintenance.

In the second place, society had to develop to the point of valuing a life as an individual life before insurance could arise. In the earlier history of civilization it was only the exceptional individual, the king, the warrior, or the priest, whose life had any considerable value. Division of labor had not proceeded far and the work of the masses was so simple, that the loss of any one person was not greatly missed, since almost any other person could do his simple task. With the progress of society and the corresponding minute divisions of labor, the life of each came to have a definite value to the other members of the group, so that it has come to be of great importance to society that each perform his allotted task and make provision for meeting his obligations. (Gerhart, p. 2-3)