Difference Between Insurance And Assurance
The main dissimilarities or difference between insurance and assurance can be described as follows:
1. Introduction
Insurance: A risk management technique that provides financial safety against uncertain future losses.
Assurance: Financial coverage provided for an event that certainly happens
2. Underlying Principle
Insurance: It is based on the principle of indemnity
Assurance: It is based on the principle of certainty
3. Types Of Risk
Insurance: Uncertain
Assurance: Certain
4. Compensation Payment
Insurance: Payment is made in case of loss only
Assurance: Payment is made in any situation (either loss occurred or after the contract is matured)
5. Contract Duration
Insurance: For one year only
Assurance: For long term ( minimum 5 years to 35 years)
6. Surrender Value
Insurance: There will be no surrender value
Assurance: Surrender value can be received after some years
7. Investment
Insurance: It is not an investment
Assurance: It is a form of investment
8. Insurable Interest
Insurance: Can be measured easily
Assurance: Cannot be measured
Also Read:
Also Read:
9. Subject Matter
Insurance: Property
Assurance: Human Life
10. Examples
Insurance: Fire insurance, auto insurance, marine insurance and other types of general insurances.
Assurance: Different types of life insurance policies
Insurance Vs Assurance (Comparison Chart)
I hope this post is helpful to understand the difference between insurance and assurance and to make comparison between them.
Basis For Difference
|
Insurance
|
Assurance
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Introduction
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Risk management technique of providing financial safety against losses
|
Financial coverage for certain events
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Underlying Principle
|
Principle of indemnity
|
Principle of certainty
|
Risk
|
Uncertain
|
Certain
|
Compensation Payment
|
In case of loss
|
In case of loss or after maturity
|
Duration
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1 year
|
|
Surrender Value
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No
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Yes
|
Investment
|
No
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Yes, it is an investment
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Insurable Interest
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Measurable
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Not measurable
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Subject Matter
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Property
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Human Life
|
Examples
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Fire insurance, auto insurance etc
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Life insurance
|
I hope this post is helpful to understand the difference between insurance and assurance and to make comparison between them.
