Life Insurance has been defined as comprising ‘any contract in which one party agrees to pay a given sum upon happening of a particular event contingent upon the duration of human life’. Life insurance business is a contract of insurance on human life including any contract where the payment of money is assured on death (except death by accident) or happening of any contingencies dependent on human life. Life insurance removes the risks from human life by providing help to the families in the unfortunate event of premature death of the breadwinner and help to old persons without having any visible means of support. The Life Insurance Corporation Act, 1956 has nationalized the life insurance business in India by transferring all such insurance businesses to a corporation.
