This document discusses insurance and capital markets in India. It defines insurance as a contract where one party agrees to compensate the other for potential losses in exchange for premium payments. Key terms and characteristics of insurance are described, including the principles of indemnity, subrogation, and insurable interest. The functions and relevance of insurance to individuals, businesses, and society are explained. Capital markets are introduced as markets for long-term securities like stocks and bonds. Risk is defined and the causes, types, and management principles and techniques are outlined.