General purpose of this lecture is to describe on Insurance Act; in terms of business law. Life is risky and Insurance provides a financial buffer against risk. But purchasing insurance without understanding its law creates its own risk. Contract of insurance is contract between two parties where by one party, call the insurer, agrees to pay the other party a certain some of money on the happening of a specified contingency or agrees to indemnify the other party from losses arising from certain specified events. Finally focus on advantages and characteristics of insurance.