Insurance means safeguarding the interest of insured providing protection against eventuality and possible mishappening. It reimburses only loss occurred to insurer and does not mean to cause profit.
Insurance is broadly classified into two categories life insurance and general insurance. Life includes only human life where as general insurance covers fire insurance, marine insurance, miscellaneous insurance. Miscellaneous insurance includes shopkeeper, motor,household, mediclaim , bankers indemnity, personal accident, jewelry, money, cattle, horticulture, fish, honey, bee insurance etc.
Motor insurance is most prevalent in India. Motor insurance is further divided into third party liability and compulsory personal accident. Third party liability insurance is compulsory for motor owner and it includes the damage caused by owner to other’s vehicle.