THE EIGHT-FOLD PATH 
The technique of vipassana divides the Buddha's eight-fold path into three processes: sila, samadhi and panna.

Sila refers to the moral precepts, which cover three parts of the eight-fold path: right speech, right action and right livelihood.

Meditators are required to follow eight precepts of right action and right speech. Five are to be practiced at all times—no killing, stealing, sexual misconduct, false speech or intoxicants. And three during the course of the program: celibacy, abstinence from untimely eating (no food after noon) and abstinence from sensual entertainment, bodily decoration and the use of luxurious beds.

Because the meditators are engaged in introspection for their own as well as the world's good, they also practice right livelihood—work that does not injure other beings.

The second process, samadhi, focuses on developing concentration. It encompasses: right effort, right awareness and right concentration through anapana-sati, a technique which paves the way for awareness and concentration.

Finally comes panna—insight. "The unique contribution of the Buddha to the world was a way to realize truth personally and thus to develop experiential wisdom, bhavana-maya panna," writes Hart.

Some important things about Vipassana:

(1) Though this extremely easy meditation can be done anytime, anywhere, initially it is strongly advised that you allocate some fixed time for it on daily basis. Choose a separate room and sit in a comfortable position. Them meditate by watching your breathing.

2)  The real success will come when you can be aware of your breath while doing all kind of daily activities like reading, playing, driving, swimming, or doing any domestic task. However this stage will come after a  regular practice for a considerable amount of time. At that point there will be two aspects of your existence - doing and being. You will be doing everything, fully involved in your tasks, yet inside there will be a center of awareness in you undisturbed by outer circumstances. That will be the true state of a meditator - the one who will be creative outside and meditative inside.

Benefits:
Vipassana meditation aims at the highest spiritual goals of total liberation and full enlightenment. Its purpose is never simply to cure physical disease. However, as a by-product of mental purification, many psychosomatic diseases are eradicated. In fact, Vipassana eliminates the three causes of all unhappiness: craving, aversion and ignorance. With continued practice, the meditation releases the tensions developed in everyday life, opening the knots tied by the old habit of reacting in an unbalanced way to pleasant and unpleasant situations.

The mechanism:
The mind, says the Buddha, consists of four processes:
consciousness (vinnana), 
perception (sanna), 
sensation (vedana) and 
reaction (sankhara). 
Consciousness is nonjudgmental awareness, until perception interprets the stimuli either negatively or positively. This interpretation produces a sensation within us, which is either pleasant or unpleasant, depending upon our perception. And finally comes reaction, which is the action the sensation provokes. 
{For instance, in conversation with someone, our consciousness first registers a noise, which our perception translates as a compliment upon our appearance. This triggers a feeling of warmth and happiness (sensation) which manifests in a broad smile (reaction).}

Over time, our momentary reactions of likes and dislikes cement into craving and aversion. It is this pendulum swing between negative and positive reactions, which Buddha calls attachment which enslaves us to suffering.

The way out, then, is to break the link between action and reaction. It is reaction that triggers off the cycle of birth and death by promoting the flow of consciousness. Overcome reaction, says the Buddha, and you transcend the cycle of birth and death. Since reaction is caused by our ignorance of the fact that we do react, and of the impermanent state of existence, the solution is to become aware of these aspects

Buddha put it thus:

If ignorance is eradicated and completely ceases, reaction ceases;
if reaction ceases, consciousness ceases;
if consciousness ceases, mind-and-matter cease;
if mind-and-matter cease, the six senses cease;
if the six senses cease, contact ceases;
if contact ceases, sensation ceases;
if sensation ceases, craving and aversion cease;
if craving and aversion cease, attachment ceases;
if attachment ceases, the process of becoming ceases;
if the process of becoming ceases, birth ceases;
if the process of becoming ceases, birth ceases;
if birth ceases, decay and mental suffering and tribulation cease.
Thus this entire mass of suffering ceases.