Insurance may be described as a social device to reduce or eliminaterisk of loss to life and property. Under the plan of insurance, a largenumber of people associate themselves by sharing risks attached toindividuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingentupon these may be insured against at a premium commensurate withthe risk involved. Thus collective bearing of risk is insurance.
TYPES OF INSURANCE
Insurance industry in India is broadly classified as-
Life Insurance:- policies protect individuals against the risk of life.Life 100 Insurance policies not only protects the insured’s familyagainst his death but also provides a good means to avail tax benefit, avail loans from banks and acts, as a good saving tool tomeet future needs.
General Insurance:- on the other hand protects the property andcasualty by covering losses from disasters and accidents thereby protecting from property damage and liability, providing the meansfor victims to resume their lives and businesses and contribute tothe economy.