What Is The Different Between In Insurance And Assurance?

Different between in Insurance and Assurance: - The words insurance and assurance are not similar but these are often used interchangeably. Some writers on this subject have tried to draw distinction between these two terms.

It is maintained by some writers that the term insurance should be applied to those contracts where the insured amount is payable on the occurring of specific event which may or may not arise during the particular period. As sea perils (Marine insurance) or property damage by fire (Fire insurance) or risk of theft and robbery (Theft insurance and robbery insurance respectively) If no such destruction or damage takes place nothing becomes payable to the insured.

While the term "Assurance" should be applied to those contracts where the insured amount is guaranteed on the happening of death which is bound to take place sooner or later so the Assurance is used where the risk attached to the contract is certain as death in life Assurance and on the other side the word insurance is used where the risk attached to the contract is uncertain as in case of Marine & Fire insurance.According to some other writers the word Assurance may refer to the "Principle" where as the word insurance may refer to the "Practice".

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assurance means improvement and accuracy
insurance is the protection in term of monetary form

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