A REVIEW OF INSURANCE INDUSTRY IN INDIA

Life is full of risks, being a social animal and risk averse, man always tries to reduce risk. An age-old method of sharing of risk through economic cooperation led to the development of the concept of ‘insurance’. Insurance can be defined as a legal contract between two parties whereby one party called the insurer undertakes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncertain. The other party called the insured pays in exchange a fixed sum known as premium at regular intervals. The insurer and the insured are also known as assurer or underwriter and assured respectively. The document which embodies the contract is called the policy.