Enumerate the differences between 'Wagering Agreements' and 'Contract of Insurance' with reference to provision of the Indian Contract Act, 1872.

Distinction between Wagering Agreement and Contract of Insurance S.N Basis Wagering Agreement Contract of Insurance Meaning It is a promise to pay money or money’s worth on the happening or non-happening of an uncertain event. It is a contract to indemnify the loss. Consideration There is no consideration between the two parties. There is just gambling for money. The crux of the insurance contract is the mutual consideration (premium and compensation amount). Insurable Interest There is no property in case of wagering agreement. Insured party has an insurable interest in the life or property sought to be insured. Contract of Loser has to pay the fixed Indemnity amount on the happening of an uncertain event. contract of insurance indemnifies the insured person against loss Enforceability It is void insured and unenforceable agreement It is valid and enforceable Premium No such logical calculations are required in case of wagering agreement. Calculation of premium is based on scientific and actuarial calculation of risks. Public Welfare They have been regarded as against the public welfare. They are beneficial to the society.