Name- Lalramvenpuia

Id no- 19PMHS004
Q1. Distinguish between rural insurance and social insurance.

Ans:

Rural insurance Social insurance

1. Rural insurance ensures that families living 1. Social insurance is one of the devices to
in rural areas have a safe and secure prevent an individual from falling to the depths
future Of poverty and misery and to help him in times
of emergencies.
2. The insurance helps them to cover risks 2. Insurance involves the
Related to various aspects of their life. setting aside of sums of money in order to
provide compensation against loss, resulting
from particular emergencies.

3. Examples of rural insurance include: Hut 3. Examples of social insurance include:

insurance, Poultry insurance, Cycle rickshaw Medicare, Medicaid, Social Security,
policy, Sericulture insurance etc. Unemployment Insurance.

4. The premium is mutually agreed between the 4. The benefits are kept within fixed limits, so
insurer and the insured after as to ensure the maintenance of a minimum
going through the property/ livestock details Standard of living of the beneficiaries during
the period of partial or total loss of income.

5. The claim is verified by bank officials. If 5. It is provided on compulsory basis so that its
authentic, the claim is settled, else benefit might reach to all the needy persons
it is rejected of the society who are sought to be covered by
the scheme.