Insurance distributes the cost of unexpected losses by having an insurer and insured share the risk. The Pakistan Insurance Act of 1952 established rules and regulations for insurance businesses covering various fields of life and general insurance. However, insurance in Pakistan has faced serious problems and failed to gain high performance compared to developed countries due to issues like poverty, illiteracy, and lack of insurance awareness and economic development. Insurance is classified into life insurance, which provides security against events like death or marriage, and non-life insurance, which covers risks from events excluding death like fire, marine accidents, motor accidents, and more.