The advances of technology, the multiplicity of activities and growing interdependence makes larger and larger disaster inevitable. Progress has put more people, more companies at risk than even before. Traffic multiplicities on road, in the air and at the sea. The disaster cause death or hardship too many more people and properties. Defective goods can cause injury. Mistakes to happen and accidents can kill employees and general public.

The essence of insurance lies in the elimination of uncertain risk of loss for individuals through the combination of the large number of similarities expose individuals who contribute to common fund premium payment which is sufficient to make the goods loss caused to any one individual. In all kind of insurance the fundamental principle is that one man agrees to take the risk of another man’s life, insurance business in consideration of certain small payment which is called premiums. The simplest and most general concept of insurance is a provision made by a group of persons, each single in risk of same loss, the incidence of which cannot be forecasted, that when such loss occurs at any of these it shall be distributed over the whole group.

insurance. Like for example BAJAJ ALLIANZ LIFE INSURANCE Co. Ltd., ICICI PRUDENTIAL, and BIRLA SUNLIFE INSURANCE etc. the share of private life insurance players has also been increased marginally. Life insurance is superior to other savings because of followings


Where saving through life insurance guarantees full protection against risk of death of the saver. In life insurance, the full sum assured is payable (with bonus where ever applicable) as in other saving schemes, only the amount saved (with interest) is payable.


Life insurance encourages ‘thrift’. Long term saving can be made in a relatively “Painless” manner because of the “easy installment” facilities built into the schemes(method of paying premium monthly, quarterly, half-yearly or yearly).


Loans can be raised on the sold security of a policy which acquires loan value. Besides, a life insurance policy is also generally accepted as security for even a commercial loan.


Tax relief in income tax and wealth tax is available for amounts paid by the way of premium for life insurance subject to income tax rates in force. Assesses can avail themselves of provisions in the tax relief. In such cases assured in effect pays a lower premium for his insurable then he would have to pay otherwise.


A suitable insurance plan or a combination of different plan an be taken out to meet specific need that are likely to arise in future, such as children education, start a life insurance or marriage provision or even periodical needs for cash over a stretch of time.

Apart from savings, the insurance field is fulfilling for the employer’s point of view. Due to penetration of private players in Indian insurance market potential persons get more options of employment here. This may be source of unlimited income in respect of