In simple terms, insurance allows somebody who suffers a loss or accident to be compensated for the consequences of their misfortune. It lets you protect yourself against everyday risks to your health, home and financial situation.

Insurance in India started without the regulation in the Nineteenth Century. Installation Floater It was an average story of a colonial epoch: few British insurance companies dominating the market serving mostly large urban centers. Following the independence, it took a theatrical turn. Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then your general insurance business was nationalized in 1972. It was only in 1999 that the private insurance companies have been allowed back into the business enterprise of insurance with no more than 26% of foreign holding.

"The insurance industry is enormous and could be very intimidating. Insurance has been sold for almost anything and everything you are able to imagine. Determining what's right for you can be a really daunting task."

Concepts of insurance have been extended beyond the coverage of tangible asset. Now the chance of losses because of sudden changes in currency exchange rates, political disturbance, negligence and liability for the damages can also be covered.

But if an individual thoughtfully invests in insurance for his property prior to any unexpected contingency he then will soon be suitably compensated for his loss the moment the extent of damage is ascertained.

The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. The collective connection with another countries in Asia has deregulated their markets and has allowed foreign companies to participate. If the knowledge of another countries is any guide, the dominance of the Life Insurance Corporation and the General Insurance Corporation isn't going to disappear anytime soon.
The aim of insurance is to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. Insurance is especially of two types: life insurance and general insurance. General insurance means Fire, Marine and Miscellaneous insurance which include insurance against burglary or theft, fidelity guarantee, insurance for employer's liability, and insurance of motor vehicles, livestock and crops.