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It is basically for general satisfaction and one pays the premium comprising of two components; one is case of saving and other is risk coverage. The market of insurance is now no longer confined to product sector but is also dealing with service industries. The risk level is also the on going factor of insurance and diversification is playing a vital solution for reducing the average risk.
Government was the key undertaker of insurance sector but now many private enterprises are working in this field after the passing of Insurance Development and Regulatory Act in 2000. In this fast moving world, insurance has an important role to play in reducing risk burden among individuals and businesses.