Question

difference between compulsory and non-compulsory insurance

Answer 1

Compulsory insurance is a type of insurance that is required by law before you can engage in specific activities. This kind of insurance is meant to protect you from harm in some way, an example would be the legal requirement to have auto insurance to drive a car or having health insurance in the United States.

Non compulsory insurance is pretty much everything that you are not required to have, insurance such as travel insurance, life insurance, phone insurance, etc. Although it is a good idea to get these, they are not required.

Non compulsory basically means voluntary while compulsory means required.

Answer 2

Insurance is a risk transfer mechanism. It helps to mitigate the effect of loss as a result of peril effect on our property.

Every country have numbers of necessary insurance policy which its mandated its citizen to own or else, the citizen is at risk of great sanction. Such insurance include Motor insurance, Building Insurance (For more than 2 storey building), Employer liability insurance. The insurance are compulsory insurance

Non-compulsory insurance are set of insurance policy not mandated to the purchase by the authority of a country. Example are Pet Insurance, House-owner policy among other

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