Distinguish between Pure risk and Speculative risk on the following basis:

(a) Meaning, (b) Possibility of profits loss, (c) Risk coverge.

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Solution

$\begin{matrix} Basis & Pure risk & Speculative risk 1. Meaning & Pure risk which involes only & Speculative risk involes both the possibility the possibility of loss or no loss. & of gain as well as possibility of loss. 2. Possibility of & Occurence of this risk may result in & Occurance of this risk may result in profit loss & loss only and no gains. & possibility of both gain as well as loss. 3. Risk coverage & Insurance services provide & Such risk cannot be covered coverges of such risks. & under insurance provisions. \end{matrix}$

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