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Difference between insurance and assurance.

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BASIS FOR COMPARISONINSURANCEASSURANCE
MeaningInsurance refers to an arrangement, which provides cover for an event that can happen but not necessarily, like flood, theft, fire etc.Assurance is a provision for coverage of an event, whose happening is certain, such as death.
Based onPrinciple of indemnityPrinciple of certainity
Protection againstAn anticipated eventA definite event
Timing for payment of claimOnly at the happening of the uncertain event.Either on the happening of the event or on maturity.
DurationOnly for one year, renewable after year.Long term, running over number of years.
TypeGeneral insuranceLife insurance
PurposeTo indemnify the insured, against any kind of risk.To assure payment, on the happening of the specified event.
InsurerUndertakes to reinstate the insured to his/her previous position.Undertakes to pay the sum assured, when the event takes place.
InsuredUndertakes to pay premium regularly, in exchange for indemnity against risk.Undertakes to pay premium regularly, in exchange for benefit, on the occurrence of the event covered.

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