ACCIDENT INSURANCE. A policy of accident insurance is a contract providing in demnity for loss of life, limb, sight or time, be cause of bodily injuries, effected solely and independently of all other causes, through ex ternal, violent and accidental means. The full principal sum of the policy is payable in case of death, loss of both hands or both feet, of one hand and one foot, or the sight of both eyes. One-half of the full principal sum is pay able in case of the loss of either hand or foot or the sight of one eye. A fixed sum is payable weekly for the term of temporary disability, whether total or partial, not exceeding a cer tain definite period, varying from six months to two years, and frequently for the life of the insured. The premium, which is generally es timated on the annual basis, is determined by the business, occupation or profession of the applicant, and is proportioned upon the amount of the principal sum and the weekly indemnity named in the policy. Double amounts, both of the principal sum and of the indemnity, are payable in case of injuries received in or on a moving conveyance, provided for the use of passengers, and propelled by steam, electric or cable power; or for injuries received in or while entering or leaving passenger elevators; or in burning buildings, or for injuries caused by falling walls; or from automobile ac cidents on the highway; or caused by a stroke of lightning; or by the explosion or rupture of a steam boiler ; or by a cyclone or tornado.
The policy also provides for hospital treat ment; for the payment for medical and surgical fees and for operations; for the payment of optional indemnity, in cases of certain named injuries, in lieu of weekly indemnity; and for annual accumulations of the principal sum and the weekly indemnity until the same amount to 50 per cent in addition to the original sums: also for emergency indemnity to place the in sured in care of friends or relatives in case of injury away from home.
Accident insurance was first introduced in this country by James Goodwin Batterson of Hartford, Conn., after his return from a trip to England in 1859, where he learned of acci dent insurance, in the form of tickets, insuring the holder for a specified sum, in case of death or injuries resulting from railway accidents. The first American accident insur ance company was organized in 1863 at Hart ford, and it is said that the first insurance con tract made by the company was a verbal agree ment between the president of the company and a citizen of Hartford, whereby, in consider ation of a premium of two cents, the company agreed to indemnify the insured in the sum of $5,000, in case of accident to the insured while journeying from the post-office to his house in Buckingham street.
Growth.— The growth of the business has been phenomenal since that modest beginning, as the following figures will attest: Premiums received from 1873 to 1892, $42,027,207; losses paid $18,125,771; from 1893 to 1916 premiums received $426,600,679; losses paid $183,804,575.
The above figures cover the operations of the stock insurance companies, of which there were 119 transacting business in 1916 with pre miums written in that year of $43,043,546, and losses paid of $19,159,528, including health insurance in the case of some companies that do not report their accident and health premiums and losses separately. There are in addition, however, a large number of mutual accident insurance associations operating in the United States upon the assessment plan and providing to their members accident and sick ness insurance at a cost much less than could be obtained from stock companies. This busi ness has increased since 1901 from premiums or assessments received of $1,111,232 and claims paid of $715,429 to premiums or assessments of $6,937,175 and claims paid $4,834,479 in 1916, covering the operations of 56 companies.
The number of certificates in force at the close of 1901 was 146,185, while at the end of 1916 this number had increased to 799,761. The total admitted assets increased during the same period from $930,471 to $4,360,666; total liabilities from $84,630 to $2,065019, and net surplus from $845,841 to $2,296,747.
In a word, accident insurance has assumed a leading place in insurance underwriting of the United States, and the ever-increasing competi tion of new companies and the activities of those now in business has resulted in the con tinued broadening of the policy and the grant ing of additional benefits. At the present time, the modern, up-to-date policy is practically con ditionless and pays indemnity for life, in case of total or partial permanent disability, thereby affording to the unfortunate an annuity that may be his only source of income. Partners in business and officers in corporations take out large policies, payable to the firm or to the cor poration, protecting them against loss in case of the removal by death of a valued member of the organization. In many such ways, accident insurance proves to be not only a benefaction, but actually a conserver of credit. •