Introduction

Today, only one business, which affects all walks of life, is insurance business.

Thats why insurance industry occupies a very important place among financial services operative in the world. Owing to growing complexity of life, trade and Commerce, individuals as well as business firms are turning to insurance to manage various risks. Therefore a proper knowledge of what insurance is and what purpose does it serve to individual or an organisation is therefore necessary. Insurance is a mechanism that ensures an individual to thrive on adverse consequences by compensating the individual his/her loss financially. Every individual in this world is subject to unforeseen and uncalled for hazards or dangers, which may make him and his family vulnerable. At this place, only insurance helps him not only to survive but also recover his loss and continue his life in a normal manner, which would otherwise be unthinkable.

Need for Insurance

As we all know life is full of uncertainties and insurance is based on uncertainties and if there are no uncertainties about the occurrence of a disaster, the concept of insuran ce will cease to exist. If we all are able to predict the future dangers correctly then we can take a safeguard action to move out of the danger but problem is that we cannot predict death, disaste r and danger. All individuals as well as their tangible and intangible assets are exposed to all types of unforeseen risks. Thus insurance is done against such possible contingencies to save the owner and his family from all sorts of sufferings by making good the losses of the unfortunate few, through the help of the fortunate many, who were exposed to the same risk, but saved from the misfortune. As insurance is a system of sharing risk that seems to be too great to be borne by one individual we can list out the benefits d erived by individual and society from the insurance