-COMPARE AND CONTRAST EQUB, IDIR, BANKS, 2019

AND INSURANCES

Civics assignment
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Compare and contrast the workings of:

a. Banks and insurances
b. Equb and idir
c. Banks and Equb
d. Insurances and idir

Banks, Equb, idir, and insurances are all financial institutions in general. They all have
similarities and differences. Their similarities and differences in their workings are to
be discussed below.

Banks and insurances

Similarities: Both banks and insurances are financial institutions that make profit.
They are both modern organizations that give services, and work on large scales.
Banks and insurances rely on public trust to function properly. If not trusted, if their
reputation is damaged both cannot continue to give services, and profit making
comes to a halt. In addition to the previous similarities, they’re similar in having a
more or less complex organizational structures, and a high need for educated man
power.

Differences: Insurances give financial compensation for their customers when

unexpected accidents happen. In order to get insurance coverage, customers have to
pay annual premium payments before these unexpected accidents happen. Banks
are different from insurances because they don’t give coverage for accidents nor
need annual payments. Their main purpose is to give saving and loan services.
Customers can withdraw money from their deposit account at any time, but can’t
withdraw any money from insurances.

Equb and idir:

Similarities: both are traditional institutions. Both are needed to solve financial
problems.

Differences: Equb is used for shortening the amount of time needed to wait until
ones savings build up to be sufficient enough for a purpose to be achieved
financially. It’s more or less like banks. Idir in the other hand gives financial
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compensation when a person’s relatives die. It’s only useful for covering up expenses
needed to perform mourning ceremonies. In addition to its financial uses, it’s also
used to give moral support for the people whose loved ones passed away.

Insurance and Equb

Similarities: both give support when unexpected bad things happen. And both
similarly give financial support too.

Differences: idir is a traditional institution while insurances are modern. Idir only
gives support in the event of death. While insurances also give financial cover ups
when properties are damaged. Insurances work on larger scales than idir. Insurances
need formality to work. One has to provide them with formal documents. But on the
other hand idir works informally, all it needs is trust among its members. Idir gives
moral support while insurances only give financial support.

Banks and Equb

Similarities: both are financial institutions. Equb more or less works the way debt
services are given in banks, in both people can be given money to be paid back later
on.

Differences: Equb is traditional. Banks are modern. Equb works on small scales while
banks work on lager scales. Using banks guarantees more safety than idir. Banks
make profit, Equb doesn’t. In addition to giving debt like Equb, banks give additional
services such as checking services, saving, import and export services…etc. Equb
lacks formality but banks need it.