SIMILARITIES AND DIFFERENCES BETWEEN INSURANCE AND GAMBLING

 Insurance is an aid to trade while gambling is a risk matter or act of game where people work on chance or luck.

SIMILARITIES

1. In both cases, many people contribute towards a common pool.

2. At least two or more members are involved, i.e in insurance there is the insured and insurer while in gambling there are gamblers.

3. In both cases, either chance or misfortune determines who takes money from the pool.

4. Many people contribute but one or few take the money.

5. They both involve some element of gaining by one party, i.e if the risk does not happen, the insurer takes the money while in gambling, the winner benefits.

DIFFERENCES

1. Insurance is a legal business which is recognized by the state while gambling in most cases is illegal and a social crime in society.

2. In gambling, the event specialized against must occur, i.e one side must win where in insurance the risk insured against may not or may occur except with life assurance.

3. Insurance helps the unlucky one to be restored to their original position while in gambling, one person must gain while others lose.

4. In gambling, the winner does not suffer any loss while in insurance it is the loss sufferer who is compensated (who benefits).

5. In insurance, one must have interest in the property insured while in gambling, there is no insurable interest.

6. There is utmost good faith in insurance while in gambling people use a lot of tricks to win.

7. In insurance, money paid (premium) can be in installments or in full while in gambling, it is paid once in full amount and taken once by the winner.

8. In insurance, only one party, i.e the insured contributes money while in gambling, all the parties must contribute the money to be taken by the winner.

9. To undertake a policy in insurance, some procedures must be followed, for instance, documents are used while in gambling documents may not be used.

N.B : Apart from legal gambling such as lotteries and sports betting, most gambling games are illegal.

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