Insurance is a business that covers risks due to loss of life and assets due to fire, theft, burglary, natural calamities etc. Insurance business to start with was in in private sector. Later, owing to Governmental policies two giant corporations like LIC and GIC emerged. Today, in the background of privatisation, many new private enterprises including foreign companies have entered the field. There appears to be a future of stiff competition in the insurance sector. Insurance operates under two guiding principles, namely faith and indemnity. It is a business where a high level of ethical value should prevail with both the customers and the company. Companies are obliged to do a balancing act between competition and ethical values. Insurance correspondence demands tact, faith, courtesy and transparency in their content.