What is the difference between insurance and assurance?
Insurance is basically a risk-transfer tool, which provides for economic compensation of a loss incurred by the insured. Assurance applies mostly to life insurance contracts, in which there is a certainty of repayment on the happening of the event that is either on maturity or on the death of the assured. In non-life insurance, however, the insured event may occur or not during the contracted period and as such there is no assurance of payment.
Insurance is basically a risk-transfer tool, which provides for economic compensation of a loss incurred by the insured. Assurance applies mostly to life insurance contracts, in which there is a certainty of repayment on the happening of the event that is either on maturity or on the death of the assured. In non-life insurance, however, the insured event may occur or not during the contracted period and as such there is no assurance of payment.
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