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They both are different. Insurance contracts should be distinguished from wagering or gambling contracts such as betting on the turn of a card or on horse racing etc. Gambling is done to create risk. Measurement of risk: measurement of risk in insurance is done in a scientific way. Not possible to measure risk in gambling. Objective: insurance is done to minimise the risk of future uncertainties. Gambling is done for entertainment and for gaining profit. Insurance is a great help to businessmen and individuals. Gambling and insurance are two distinct and different operations. Gambling is speculative in its risk assessment whereas insurance is a pure risk and is non-speculative. In gambling, one may win or lose by creating that risk. Although there may be some superficial similarities between the two concepts, a strict definition of both speculation and gambling reveals the principle differences between them. Insurance and gambling are considered alike because there is uncertainty regarding events, and payment is made when the event occurs. Like gambling, the insured is unaware of the time and amount of loss. If the event occurs, the insured, like the gambler, gains; otherwise, they experience the loss

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Insurance is a great help to businessmen and individuals. Distinctions between an insurance contract and a wagering contract. A contract of insurance is a contract of indemnity and not a wagering, or gambling contract. 25) white it is based on a contingency, it is not a contract of chance and is not used for profit. The distinctions are the following:. Gambling intentionally puts up a stake that the gambler is willing to lose. Insurance collects payments against replacing, repairing, or recovering property that an owner is unwilling to lose. Gambling is the intentional and willful exposure of one’s self or assets to the risk of loss. Gambling and insurance are two distinct and different operations. Gambling is speculative in its risk assessment whereas insurance is a pure risk and is non-speculative. In gambling, one may win or lose by creating that risk. It’s crucial to understand the difference between direct and indirect costs when pricing your products or services. Distinguish between insurance and gambling. Answers (i) for insurance, loss might never occur while for gambling, the bet must happen in order to determine winner or loser. (ii) insurance involves pure risks while gambling involves speculative risks

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