The insurance organisation developed in different forms with the advancement of insurance practices. Some of the forms are discussed below.
1. Self insurance: The plan by which an individual or concern sets up a private fund out of which to pay losses is termed self insurance. The sermo laws cried periodically certain sum to meet the losses of any contemplated risk. While it may be called self insurance, it is not, as a matter of fact, insurance at all because there is no hedge, no shifting or distributing of the burden of risk among larger presins. Its is merely a provision for netting the contingency. Here the insured becomes his own insurer for the particular risk. But. It can be successfully worked only when there is wide distribution of risks subject to the same hazard. It may be lesser expensive, provide the amount of loss is tremendous. The fund, as it accumulates, belongs to the insured and he can invest it as he may deem prudent. He pays no commission to agents, no extra expenses for maintaining office. So, on the one hand, the return of an investment will be higher and On the other, the cost of operation will be lesser.
2. Individual insurer: An individual like other business can perform the business of insurer provided he has sufficient resources and talent of insurance business. The individual organisation has been rare in the field of insurance.
3. Partnership: A partnership firm can also carry on the insurance business for the sake of profit. Since it is not am entity distinct from the persons composing it, the personal liability of partner in respect of the partnership debts is unlimited. In care of huge loss the partner have to pay from their own reproal funds and it will not be profitable to them to start insurance business in the early period before the advent of joint stock companies many insurance undertakings were partnership or unicorporated companies. They were constituted by feed of partnerships which regulated the business.
4. Joint stock companies: The joint stock companies are those which are organised by the share holder who subscribe the necessary capital to start the business are formed for earning profits for the stock holders who are the real owners of the companies. The management of a company is entrusted to a board of directors who are elected by the share holders from among themselves. The company can operate insurance business and the policy holder have nothing to do with the management of the concern. But in life insurance it is the practice to share certain profit among the certain policy holders.
5. Mutual companies.
6. Co operative insurance organisation
7. Lloyds association
8. State insurance
