The business of insurance is related to the protection of the economic value of assets. It is a means of providing protection against financial loss in a great variety of situations. It is a co-operative method for spreading over the loss caused by one or more, caused by a particular risk, over a number of persons who are exposed to it and who agree to insure themselves against that risk1. It is observed that the essence of insurance is to share losses and substitute certainty by uncertainty. Insurance plays a vital role in the modern society. Life insurance assures to replace income lost to a family if the policy holder meets an untoward incident. Fire insurance pays all or part of the loss if the insured property is destroyed by fire. Motor vehicle insurance compensates the cost of damages resulting from accident. Now-a-days, people can also avail insurance to cover unusual types of financial losses. Dancers have insured their legs against injury. Motion picture producers have even insured the lives of animals starring in their films2. The desire for security is sought to be safe by taking all the precautions possible to avoid or prevent the consequences of risk3. The rural insurance protects the interest of rural people. Insurance is a mechanism that helps to reduce adverse consequences.