Bottomry
Lloyds
Rhodes
Malhotra Committee
Answer is Right!
Answer is Wrong!
The correct answer is: A. Bottomry.
Bottomry is a type of loan that is secured by the cargo or hull of a ship. It was a common practice in the Middle Ages, when ships were often lost at sea. The lender would agree to loan money to the ship’s owner, and the owner would agree to repay the loan with interest, plus a percentage of the value of the cargo or hull if the ship was lost.
Bottomry was an important way for merchants to finance their voyages, and it helped to reduce the risk of loss for both the lender and the borrower. It is considered to be one of the earliest forms of insurance.
The other options are incorrect because:
- Lloyd’s is a British insurance market that was founded in the 17th century. It is not the origin of modern insurance business.
- Rhodes was a Greek city-state that was founded in the 8th century BC. It is not the origin of modern insurance business.
- Malhotra Committee was a committee that was set up by the Indian government in 1991 to recommend reforms in the insurance sector. It is not the origin of modern insurance business.