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Difference Between Insurance And Guarantee

Posted: Mon Sep 21, 2009 1:02 pm
by jim
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.

Not comparable

Posted: Mon Sep 21, 2009 1:12 pm
by cristiand969
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.
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A guarantee is other story payment occuring when there is a breach of a commercial contract as per guarantee terms and conditions.