"Insurance is a form of contract or an arrangement where one party agrees in return for a consideration to pay an agreed amount of money to another party to make good the loss, damage or injury to something of value in w

Role of Insurance in Economic Development include: Provides Safety and Security to Individuals and Businesses: Insurance provides financial support and reduces uncertainties that individuals and businesses face at every step of their lifecycles. Insurance provides an ideal risk mitigation mechanism against events that can potentially cause financial distress to individuals and businesses. Generates Long-term Financial Resources: The Insurance sector generates funds by way of premiums from millions of policyholders. Due to the long-term nature of these funds, these are invested in building long-term infrastructure assets (such as roads, ports, power plants, dams, etc.) that are significant to nation-building. Employment opportunities are increased by big investments leading to capital formation in the economy. Promotes Economic Growth: The Insurance sector makes a significant impact on the overall economy of the Country by mobilizing domestic savings. Insurance converts the accumulated capital collected as premium into productive investments. Insurance also enables mitigation of losses, financial stability and promotes trade and commerce activities, those results into sustainable economic growth and development. Thus, insurance plays a crucial role in the sustainable growth of an economy of the Country. Provides Support to Families during Medical Emergencies: Good health of family members is very important for a family. From elderly parents to newborn children, medication and hospitalization play important role while ensuring well-being of families. Medical Insurance is a policy that protects individuals financially against different types of health risks. With a Health Insurance policy, an insured gets financial support in case of medical emergency. Spreads Risk: The risk of loss is transferred from the insured to the insurer. The basic principle of insurance is to spread risk among many people. A large population gets insurance policies and pays premium to the insurer. Whenever a loss occurs, it is compensated out of corpus of funds collected from the millions of policyholders.