In the world of uncertainties, people face different types of risks in their daily lives. It is not possible for any person, however cautious he may be, to avoid risks or to provide for them. It is not possible to predict all the risks and calamities that are in store for us. Many families are forced to live in penury due to death of their sole bread winner. Many fishermen in coastal regions had lost their boats and nets in tsunamis. Many students lost their lives in horrible road accident. These kinds of risks cannot be eliminating altogether. So, there is a dire need for a device or machinery or institution to provide necessary help to them. Such a device is known as “Insurance”. The institution provides such a help is called “Insurer” or the insurance company and the person for whom the protection is offered against the happening of the stated contingency is known as “Insured” or “Policyholder”.
