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What is insurancs and assurance

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What is insurancs and assurance

Posted by Aditi Sinha 7 years, 3 months ago

CBSE > Class 11 > Business Studies

1 answers

Mahesh Kumawat 7 years, 3 months ago

Assurance: In contract of assurance the sum assured is bound to be paid whether insured suffers a loss or not. It is used when risk is certain and is bound to happen. In assurance the compensation is paid whether the event happens or not. For example: Life Insurance. Insurance: In contract of insurance the insured must suffer a damage or loss, to claim the compensation. It is used when risk is uncertain, it may or may not happen. In insurance the compensation is paid only on happening of an event. For example: Fire Insurance, Marine Insurance.

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