The Indian Insurance industry is flourishing with several national and international players competing and growing at a rapid rate. Globalisation has allowed the Indian insurance sector to flourish as there is huge market potential for insurance in India and this potential will definitely increase further in future. The survey was conducted us the state of Jammu and Kashmir using primary and secondary sources of data. This study has explored and assessed insurance potential in rural areas of Jammu and Kashmir State by analysing relationship between disposable income and Insurance potential. Looking at the source of information for households, it was found that television is the primary source for both insured and uninsured households. Other sources of information are friends, relatives and neighbours, news papers, radios, and transistors.
