According to my views about insurance industries in an India:
A life insurance policy is a contract, in terms of the Indian contract Act 1872. A contract is an agreement between two or more parties to do, or not to do, so as to create a legally binding relationship.
Insurance is concept marketing with ICICI Prudential:
Yes definitely it’s a concept and intangible goods, by this concept the insurer wants to create the habit of assets saving in customers mind as well as their life, this concept will give the good returns to the investor’s family to retain the normal life.
Say for example: in a village there are 400 houses, each valued at Rs.20, 000. Every year, on the average, 4 houses get burnt, resulting into a total loss of Rs.80000. if all the 400 owners come together and contributed Rs.200 each, the common fund is Rs.80000. this is enough to pay Rs.20000 to each of the 4 owners whose houses got burnt. Thus, the risk of 4 owners is spread over 400 house owners of the village. Like this the concepts are working in the society.
The business of insurance
Insurance companies are called insurers. The business of insurance is to
Bring together persons with the common insurance interests(sharing the same risk),
Collect the share or contribution(called premium) from all of them,
Pay out compensation(called claims) to those who suffer.
The premium is determined on the same lines as indicated in the examples above but with some further refinements.
Insurance as a social security tool
When the bread winner dies, to that extant, the family’s income dies. The economy condition of the family is affected; unless other arrangements come into restore the situation. Life insurance provides such an alternate arrangement. If this did not happen, another family would be pushed into lower strata creates c cost on society. Poor people cost the nation by way of subsidies and soles and so on. Poor people also cost by way of larger growth in population, poor education and vagaries in behavior of child life insurance tends to reduce such costs. In this sense, the life insurance business in complimentary to the state’s efforts in social management.
Another thing is, different concepts of insurance products are there say for examples:
Accidental
Life insurance
Diabetes
Child education
Vehicle
Pension plans
Girl marriage
Tax saving plan
Above all the products of insurance is playing major role in may part of the country as well.