Alternative to Insurance

Alternative to Insurance

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A Limited company (regd in England) is planning a promotion to its customers and will give them a voucher at the time of the sale of the goods. The company has got an insurance quote to cover the cost of the redemtion of the vouchers. As a almost 50% cheaper alternative to the insurance premium, the client can place a bet with bookkmakers that in the eventuality of the outcome the payout would cover the same insured risk. As long as the board agrees to this arrangement and it is permitted by the Memo and AA of the company - can anyone see a problem in venturing down the path of placing a bet from an accounting or tax point?
Peter

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By tomtrainer
03rd Feb 2006 07:31

An insurance contract and a bet are the same thing
Can the bet be legally enforced? An insurance contract and a bet are the same thing, so as long as the bet can be enforced, and the terms are just as favourable, I do not see a problem.

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