In India after deregulation of insurance sector, there was a large change in insurance business, their products and services offered to the clients. Thisinsurance sectoralso plays a remarkable rolein the advancement of a country?s economy. From many previous study shows that insurance spread is extremely thin in India. Though, many research studies has not attempted to expose the reason why the insurance services were not purchasing or used by the local people especially the unreached areas. This paper will inquire about to fill upthis gap. Therefore, this study provides a brief analysis of obstacles faced by the insurance services providers in terms of before opening an insurance branch to unreached areas and their services delivery to the clients in Manipur. This study also has identified the dependable factors for escalating the cost of penetration to unreached areas.