To put it bluntly Non-compulsory Insurance is any insurance that is not compulsory to have.
Compulsory insurance is any form of insurance that is required by law before individuals or businesses may engage in certain activities. This type of insurance is intended to safeguard the welfare of everyone concerned; including those who carry the insurance as they usually avoid expensive and time-consuming legal costs this way. One of the most common examples of compulsory insurance today is the requirement by law to secure and maintain auto insurance. Usually employers have to have some kind of accident insurance too.
So non-compulsory insurance is pretty much everything else, such as home contents insurance, travel insurance and the extended warranties you can purchase when say buying a new phone. But just because they are non-compulsory does not mean that they are not a good idea.
If times are tough then it can seem that cutting some of these overheads are a good idea, and while it is certainly a good idea with the insurance on phones and other electrical good as they are often covered by the manufacturers warranties anyway and your statutory rights, things like content insurance and travel insurance are a necessity, as you know the moment you stop paying, a pipe will burst in the kitchen or an Icelandic volcano will erupt and stop all flights for a month.
So even though it may not be legally required that have non-compulsory insurance, it’s worth having some of the time. Hope this helps!
Compulsory insurance is any form of insurance that is required by law before individuals or businesses may engage in certain activities. This type of insurance is intended to safeguard the welfare of everyone concerned; including those who carry the insurance as they usually avoid expensive and time-consuming legal costs this way. One of the most common examples of compulsory insurance today is the requirement by law to secure and maintain auto insurance. Usually employers have to have some kind of accident insurance too.
So non-compulsory insurance is pretty much everything else, such as home contents insurance, travel insurance and the extended warranties you can purchase when say buying a new phone. But just because they are non-compulsory does not mean that they are not a good idea.
If times are tough then it can seem that cutting some of these overheads are a good idea, and while it is certainly a good idea with the insurance on phones and other electrical good as they are often covered by the manufacturers warranties anyway and your statutory rights, things like content insurance and travel insurance are a necessity, as you know the moment you stop paying, a pipe will burst in the kitchen or an Icelandic volcano will erupt and stop all flights for a month.
So even though it may not be legally required that have non-compulsory insurance, it’s worth having some of the time. Hope this helps!
