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Answer» Following are the points of difference between Assurance and Insurance : | S. No. | Basis of difference | Assurance | Insurance | | 1. | Use of words | Assurance word is basically used for contract. | Insurance word is used for all types of insurances specially marine, fire,etc. | | 2. | Risk | This word define certainty of risk | This word defines possibility of risk. | | 3. | Time of payment of claim | Either on the happening of event or on maturity. | Only at the happening of an uncertain event. | | 4. | Field | In assurance, field of insurance agent is limited to specific area of life insurance. | In insurance, field of insurance agent is widespread in many areas such as marine, fire, property, etc. | | 5. | Amount of insurance | In assurance, whole amount of insurance is paid the insured. | In insurance, it is not compulsory to pay the whole amount the sum insured |
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