Working and progress of Life Indurance Corporation of India

Abstract

Insurance business in India is classified primarily as Life Insurance and General Insurance. Life insurance is basically associated with risk o f human lives. It provides protection to households against the premature death o f its bread winner or income earning member. Individuals buy life insurance product by paying certain amount o f money which is called premium to the life insurance company for contractual agreement to provide a shield in case of eventualities. Therefore, life insurance is a contract under the provision o f the respective national laws or conventions or commercial practices that agree to pay a contracted sum o f money to the person whose life is insured in the event o f death or on the happening o f any other event agreed upon by the parties to the contract. General Insurance is to compensate for the loss o f goods and property of the insured.