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

  • In both cases, many people contribute towards a common pool.
  • At least two or more members are involved, i.e in insurance there is the insured and insurer while in gambling there are gamblers.
  • 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.
  • 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

  • Insurance is a legal business which is recognized by the state while gambling in most cases is illegal and a social crime in society.
  • 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.
  • Insurance helps the unlucky one to be restored to their original position while in gambling, one person must gain while others lose.
  • In gambling, the winner does not suffer any loss while in insurance it is the loss sufferer who is compensated (who benefits).
  • In insurance, one must have interest in the property insured while in gambling, there is no insurable interest.
  • There is utmost good faith in insurance while in gambling people use a lot of tricks to win.
  • 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.
  • 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.
  • 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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