It is a system by which the losses suffered by a few are spread over many, exposed to similar risks.
Insurance is a protection against financial loss arising on the happening of an unexpected event.
Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. Agent is the representative of Insurance Company whereas broker is the representative of the consumer or policy holder. IRDA would shortly be releasing the gazette for intermediaries like agents, brokers, surveyors, etc. The same will be available on the web site for your down loading on availability.