At present paper an impression of the Development, Current Issues, opportunities and challenges of Micro Insurance in India. The micro insurance is provided for low-income people by a variety of insurers. Micro Finance helps people get better livelihoods and helps them insurance industries. Government has a vital role to play in developing public private partnerships for delivering ambitious state funded insurance programs. The best antidote for poverty, governments must now turn their attention to those who are at the bottom of the income pyramid. It is clear that wealth does not percolate down to society’s poor, in India some 250 million people. Over half of the Indian populations have no entrée to banking products, let alone insurance products. Addressing these concerns is as vital as focusing on growth.