Individual Insurer

An individual like other business can perform the business of insurer provided he has sufficient resoures and talent of insurance business. The individual organization has been rare in the field of insurance.

Partnership

A partnership firm can also carry on the insurance business for the sake of profit. Since it is not an entity distinct from the persons composing it the personal liability of partners in reapect of the partnership debts is unlimited. In case of huge loss the partners have to pay from their own personal funds and it will not be profitable to them to start insurance business.

In the early period before the advent of joint stock companies. They were constituted by deed of partnership which regulated the business. Before formation of joint stock companies,the crown had empowered to grant an application letters patent to such unincorporated companies to share the management of the concern.

These forms of insurance had been completely disappeared with the advent of joint stock companies.

Joint Stock Companies

The joint stock companies are those which are organised by the share-holders who subscribe the necessary capital to start the business,are formed for earning profits for the stocj-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-holders have nothing to do with the management of the concern. But, in life insurance, it is the pratice to share certain portion of profit among the concern. But,in life insurance,it is the practice to share certain portion of profit among the certain policy-holders. The partcipating policy-holders had a right to elect their representatives to the Board of Directors to rthe extent of one-fourth of the total number of directors of the company.The provision enebled the policy-holders to have and effective voice in the management of the company. Most of the insurance businesses were done on loint stock basis before nationalisation. They were operating within the memorandam of association and articles of association framed by them. They used to distribute only 5 per cent of divisible profit to the share-holders and more than 95 per cent of the divisible profit was distributed amongst the policy-holders