Micro insurance is such an insurance which is meant and designed for the poorer and economically vulnerable section of the society who are usually not considered under the mainstream insurance providers. Micro insurance is a tool allowing low-income households better manage financial pressures of unexpected shocks and stresses. It is simple saving related life insurance plan where one may pay premiums regularly at weekly, fortnightly, monthly, quarterly, half-yearly intervals over the term policy. The products and policy premium amounts are so moulded that they suit the basic criteria to serve as insurance for the poor. Here, the insurance schemes are tailored as per the requirements and capabilities of the poor people so that it can provide protection to individuals who have little savings. Moreover, the insurance coverage value is comparatively very lower to the usual insurance plans. Thus, in a developing economy like India, micro insurance has a much wider role to play in order to economically uplift the not only the poor people in particular but also the overall economy of the country. The LIC creates micro insurance product to attract the rural segment of market, to tackle competition of private insurance companies. The very objective of the micro insurance policy is to cover the economically underprivileged segments of society. This paper attempts to analyze the performance of Micro Insurance in Silchar Division of LICI which comprises of the sates Manipur, Tripura and some parts of Assam.
