Insurance is contract or agreement under which one party agrees in consideration of insurance premium to pay an agreed sum of money to the insured to make a god for lose, damage or injury caused by some uncertain event.

* Providing certainty * Protection * Risk sharing * Assist in capital formation

The principles of insurance are the rules of action or conduct adopted by the stakeholders involved in the insurance business. They are as follows:- * Utmost good faith * Insurable interest * Indemnity * Contribution * Causa proxima

It is a well-known fact that the Indian economy has been amongst the fastest growing economies of the world. It is triggered by better performances of all the three sectors i.e., agriculture, industry and services. The first step taken by the government was to establish IRDA Act with the objective of streamlining the development process. The Indian insurance market is a mega market with a huge potential. Since the opening of the insurance sector in December 1999 the insurance industry is changing rapidly. Today 13 companies operate in the life and 13 in non-life segment. LIC of India has dominated the life segment for over four decades although only25 per cent of the insurable population was insured.

Life insurance is a contract whereby the insurer, in consideration of premium, undertakes to pay certain sum of money or annuity on the death of the insured or expiry of the specified period, whichever is earlier.

* WHOLE LIFE POLICY * ENDOWMENT POLICY * JANATA POLICY * WITH OR WITHOUT PROFITS POLICY * JOINT LIFE POLICY * GROUP INSURANCE POLICY * MONEY BACK POLICY * ANNUITY POLICY

LIFE INSURANCE CORPORATION OF INDIA (LIC) WAS FORMED ON SEPTEMBER 1, 1956 AS FULLY OWNED CORPORATION OF GOVERNMENT OF INDIA UNDER THE LIFE INSURANCE CORPORATION ACT, 1956 TO UNDERTAKE LIFE INSURANCE BUSINESS.

 Spreading of life insurance cult  Mobilisation of savings  Proper investment of funds  Conducting business economically  Acting as trustee  Meeting life insurance needs  Providing efficient services  Providing sense of participation

Fire insurance is a contract whereby the insurance company, in consideration of premium, undertakes to indemnity the insured (owner of the property) for any loss or damage caused by accidental fire.

 valued policy  Specific policy  Average policy  Floating policy  Blanket policy  Consequential loss policy  Replacement policy  Comprehensive policy

Marine insurance is a contract of indemnity whereby the insurer undertakes to indemnify the insured for the loss or damage to the ship, cargo or freight caused by sea perils in consideration of a specific premium.

 Hull insurance. Hull means a frame or body of a ship or boat. Hull insurance involves insuring a ship against sea perils.  Cargo insurance. Cargo means goods being transported through a ship. In this case, the goods are insured against sea perils of sea.  Freight insurance. In transportation of goods by a ship, the freight is paid either at the departure port or destination port.

 Voyage policy  Time policy  Mixed policy  Valued policy  Unvalued policy  Floating policy  Block policy  Fleet policy  Composite policy