Abstract: Human being is the biggest social animal on the earth becoming more and more powerful and reaching to the moon, space and playing a key role in the universe, still he is helpless in the hands of uncertainty or risks. Risks may affect any life, property or even a business organization, often risk creates lot of hurdles and wounds the lives of many in society. This question makes us to think how to assist these unfortunate people. The only way to tackle such situation is through insurance. Insurance has been used, as a risk mitigating tool by us. This study aims to reemphasize the usefulness of insurance and how it helps us in managing the risks faced in almost all aspects of our daily life. By referring to the descriptions of risk by several researchers and its historical development, it can be summed that insurance is the backbone to mitigate majority of risk encountered by us.