Insurance Contract is not a wagering agreement but it is like wagering agreement. Both, Insurance Contract and wagering agreement depend upon a future uncertain event. There are differences between the wagering agreement and Insurance Contract are as follows:



No
     
        Insurance Contract


             Wagering Agreement

1)


     Insurance Contract is an agreement between the parties in which one party, the Insurer accepts significant insurance risk from another party, the policyholder to compensate the policyholder if uncertain future event impacts the policyholder.



             Wagering Contract is one by which two persons, professing to hold opposite views touching the issue of a future uncertain event mutually agreed dependent upon the determination of the event that one shall win from the other a sum of money, neither of the contracting parties having any other interest.


2)

Insurance Contract is Valid Contract


According to Section 30 of the Indian Contract Act, 1872 wagering agreements are void.


3)

Parties will have Insurable interest.


In case of Wagering, Agreement parties do not have insurable interest.


4)

In Insurance Contract risk of loss is not created but natural.


In wagering agreement risk of loss or gain is created by the parties.

5)

Insurance of Contract Protects the Economic Interest of the Parties.


Wagering agreement affects the interest of the parties.

6)

In Insurance Contract the amount agreed is enforceable.

In case of wagering agreement, the amount agreed is not enforceable.




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