India is a country with over 800 million people who cannot afford to basic medical treatments, farmers who depend on monsoons and rising farmer suicides and other burning issues. Micro Insurance in this regard is a boon to such low-income families. Today, the micro insurance schemes that are floated by the government is widely accepted by people at large across various sections of the society. The present study is an insight in this regard as to the mechanism of micro insurance and understanding various facets of micro insurance.