4 Difference between Insurance and AssuranceIn proposition, colorful scholars or insurance have tried to distinguish between these two words;
First of all, some scholars said that the term insurance is used only where the threat, through probability, can be ascertained, i.e., it may or may not be at a certain time in the future.
Data of reprisal are of this type,e.g., fire and marine insurance.
Alternate, a structure may or may not catch fire; the boat may meet a disaster or may reach the harborage of destination safely.
In similar cases;
The policy may not be sure to come a claim, while assurance should be applied to similar contracts where the policy is bound to come a claim, i.e., where the threat ensured against must be sooner or latterly.
This is so in life contracts.
The threat is certain. According to this view, the term assurance should be used for life contracts and insurance for reprisal contracts.
Third, the other distinction tried is that insurance comes from the ensured while the assurance from the insurer.
In other words, the insurer assures the insured of his life or property while the ensured insures himself against his life or property.
Fourth, Still another distinction drawn is that assurance denotes the principle whereas insurance denotes the practice.
The below distinctions, however in proposition correct, but not hold well in practice.
By operation, both the terms are discerned against all over the world, and it's dispensable to be veritably particular about their use.
In practice, the terms have come exchangeable.