In the Late 19th Century…
Modern disability insurance began to become available. It was originally known as “accident insurance”. The first company to offer accident insurance was the Railway Passengers Assurance Company, formed in 1848 in England to insure against the rising number of fatalities on the nascent railway system. It was registered as the Universal Casualty Compensation Company to:
“…grant assurances on the lives of persons travelling by railway and to grant, in cases, of accident not having a fatal termination, compensation to the assured for injuries received under certain conditions.”
The company was able to reach an agreement with the railway companies; whereby basic accident insurance would be sold as a package deal along with travel tickets to customers. The company charged higher premiums for second and third class travel due to the higher risk of injury in the roofless carriages.
In 1892, an act of parliament was passed extending business outside of the United Kingdom. Another act, in 1897, added powers for transacting illness, fidelity guarantee, burglary and any other kind of insurance, except fire, life and marine. The company’s first accident and disease policy was sealed in June 1897 and, in 1899, the company began to issue boat and rail insurance tickets as postcards so purchasers could address them to relatives and post them before beginning their journey.
Advertisement for the Railway Passenger Assurance Company
Did you know?
- In its early years, the Railway Passengers Assurance Company dispatched a surgeon to each accident scene to see the insured received proper attention and that their claims were settled.
- The company is said to be responsible for the introduction of accident insurance to the United States. James G Batterson, who established the Travelers Insurance Company in 1863, said he got the idea after buying a Railway Passengers journey ticket in 1859 to travel from Leamington to London.
Today disability insurance covers a wide array of situations, whether you’re working on a railroad or at a desk job. Securing your monthly income is just as important in today’s world as it was 100 plus years ago. So if you’re not insured with disability and you’d have trouble making ends meet if you lost your ability to work, look into getting covered today. You never know when life will throw you a curve-ball.
For more information on disability insurance in Michigan check out michigan.gov.
