Difference between insurance and assurance

Difference between insurance and assurance

Whereas insurance is generally a contract of indemnify against a contingency.

The Insurer assumes the risk of the contingency in payment of a premium, so that the insured, “who suffers the damage, will be compensated from a common insurance fund.

Assurance is a contract which guarantees payment of a sum on the happening of a specified event which must happen sooner or later.



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