CASUALTY INSURANCE 1. Origin of casualty insurance.—The general name given to the branches of insurance other than marine, fire and life, is Casualty Insurance. In the early part of the nineteenth century when branches other than the three big ones began to be developed, the name Accident Insurance was, altho it applied to a special branch, used for some time to designate these various additional forms of insurance. In due time, however, the phrase Accident Insurance was limited to its special phase, and the broader expression, Cas ualty Insurance, came into use, and is continued to the present day.
One of the most comprehensive lists showing the various forms of insurance of all kinds is put forth by the Brokers' Association of Great Britain. The long list which would be included under the terms casualty insurance is worthy of note: 2. Extent of casualty insurance.—The latest fig ures of casualty insurance, using the reports of the State of New York, are as follows : (a) The assets were $203,000,000, which showed an in crease over the preceding year of $17,000,000.
(b) The liabilities, not including the capital, were $123, 000,000, while the total amount of capital was $46,000,000.
(c) The total income was $157,000,000. $141,000,000 of this amount was received from premiums.
(d) The disbursements were $141,000,000. The divi dends to stockholders were approximately $5,000,000.
(e) As illustrating the somewhat close underwriting con ditions of the business as a whole, it may be stated that there was a net loss from underwriting for the year of $820,000.
The relative income from the different branches in casualty insurance is reported as follows : Insurance business other than fire or life was car ried on in Canada during 1915 by 28 Canadian, 14 British and 35 United States companies. Thirty seven of these companies likewise transacted fire insur surance, and one transacted life insurance. In ad dition to these 77 companies, there were 5 fraternal orders or societies which carried on sickness insurance and also life insurance.
Of these 28 Canadian companies which carried on business other than fire or life, 21 transacted miscel laneous classes of business only. Of these, 13 trans acted sickness insurance; 12 accident insurance; 7 plate glass insurance; 8 guarantee insurance; 9 auto mobile insurance; 2 steam boiler insurance; 4 burglary insurance; 1 weather insurance; 1 hail insurance; 1 live stock insurance; and 1 title insurance.
The total amount of premiums received in Canada in 1915 for all forms of insurance, excluding fire and life insurance, was $8,133,483. The following sum mary shows the distribution of the premiums to the various classes: 3. Scope of casualty insurance.—The principle of insurance is capable of wide extension. It would be impossible to enumerate all possible cases in which in surance against a risk might properly be taken. One case in the English courts brought out a contract under which a man interested in a lecture tour of Miss Ellen Terry took out a policy, by the terms of which she was to receive £100 for each and every engage ment, which thru sickness or any other cause Miss Terry was unable to keep. It appeared that this man had made himself responsible for all or a part of Miss Terry's traveling expenses, for which he was to re ceive a share in the profits of the tours. Under the terms of the insurance as construed by the court, the insured would have been entitled to an indemnity had he suffered any loss as a result of his contract with Miss Terry.
4. Personal accident insurance.—Among the very earliest branches of casualty insurance to be devel oped was personal accident insurance. In 1848 in Great Britain it was proposed to organize a company that should insure those taking railway journeys against injury on the journey. It is perhaps need less to point out that railway travel was then in its infancy, and that the idea of insuring those who might be injured on such journeys seemed but little short of madness. However, in 1849 the Railway Passen er_g.Lsm Companv was organized by a special act of Parliament. In 1852, finding that the insur ing of persons traveling on railways would appar ently furnish a limited field, the company obtained a charter amendment which enabled them to engage in accident insurance on more general lines. The ad venture was successful from the beginning, and many other companies sprang into existence.