| BASIS FOR COMPARISON | INSURANCE | ASSURANCE |
| Meaning | Insurance refers to an arrangement, which provides cover for an event that can happen but not necessarily, like flood, theft, etc. | Assurance is a provision for coverage of an event, whose happening is certain, such as *. |
| Based on | Principle of indemnity | Principle of certainity |
| Protection against | An anticipated event | A definite event |
| Timing for payment of claim | Only at the happening of the uncertain event. | Either on the happening of the event or on maturity. |
| Duration | Only for one year, renewable after year. | Long term, running over number of years. |
| Type | General insurance | Life insurance |
| Purpose | To indemnify the insured, against any kind of risk. | To assure payment, on the happening of the specified event. |
| Insurer | Undertakes to reinstate the insured to his/her previous position. | Undertakes to pay the sum assured, when the event takes place. |
| Insured | Undertakes 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. |
