Comparison of Classes of Insurance

LIFE ASSURANCE            GENERAL/PROPERTY

The insured risk is bound to happen

The event is insured against may not happen
Appreciates in value.at the end of the stated period the sum assured is higher The sum insured remains the same.
May be used as security for a loan Can not normally be used as security for a loan
May be undertaken by more than one insurance company One is legally required to insure with only one insurance company.
The principle of indemnity does not apply to this type of insurance The principle of indemnity applies to this type
There is no limit to the amount of cover that can be undertaken The value of the property determines the amount of cover that can be taken.
Always results in a claim May not result in  a claim.



(Visited 89 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *