Human life and properties are always exposed to risk and uncertainties. Such risks and uncertainties may cause great loss to human beings. Risk cannot be completely eliminated but there is a device to cover the loss of the financial risk, which is known as insurance. In this modern generation, insurance had become an essential tool to manage the risks of an individuals the corporation.

Insurance can be defined as the act of providing indemnity or coverage against harm, as per the contract. Insurance is a legal contract that protects people from the financial losses. It protects from the risk of person and business. Insurance is an economic institution that allows the transfer of financial risk from an individual to a group by the means of a two-party contract. It is a contract between the insurer and insured in which the insurer promises to pay the financial loss to the insured. Such contract is known as an insurance policy. 

According to M.N. Mishra, "Insurance is a cooperative device to spread the loss caused by a particular risk over a number of persons, who are exposed to it who agree to insure themselves against the risk."

According to John H. Magee, "Insurance has been defined as a plan by which a large number of people associate themselves and to the shoulders of all, the risk that attached to individuals."

Likewise, Insurance is a legal contract in which an individual receives financial protection against losses from an insurance company. In the modern age, insurance has become an essential tool to manage the risks of an individual and the corporations.