Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum of money called premium, to pay the other party called insured a fixed amount of money on the happening of a certain event.

Insurance provides protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. Each loss is paid out of the premiums, collected from the insuring public.The Insurance Companies act as trustee to the amount collected.

In India, the Non-Life insurance schemes or General insurance schemes like Householders Insurance, Shopkeepers Insurance, Fire Insurance, Burglary Insurance, etc.are offered by the susidiary companies of the General Insurance Corporation of India namely - Oriental Insurance Co., United India Insurance Co., New India Assurance Co., National Insurance Co.

Insurance can be obtained by approaching the Insurance Companies directly. It can also be obtained through Insurance agents of the concerned companies and through intermediaries. The insurance procedure involves the proposer to complete a proposal form giving full details.