Difference Between Insurance And Guarantee

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
jim
Posts: 91
Joined: Fri Aug 15, 2008 11:58 am

Difference Between Insurance And Guarantee

Post by jim » Mon Sep 21, 2009 1:02 pm

dear sir,

i have been trying to understand the insurance practice well. could you please tell me the difference between a insurance policy and a guarantee as both of them pay on demand.
Top
cristiand969
Posts: 754
Joined: Tue Aug 05, 2008 1:52 pm
First Name: Cristian
Last Name: D.
Organization: Bank
Filter: Two Plus Two =: 4
Location: RO

Not comparable

Post by cristiand969 » Mon Sep 21, 2009 1:12 pm

You may want to note that insurance policy is not a payment on demand but rather a payment when an event covered by the policy has occured.
.
A guarantee is other story payment occuring when there is a breach of a commercial contract as per guarantee terms and conditions.
Top
Post Reply

Return to “Letter of Credit Forum”