If I understand correctly you want to know the difference between surge voltage and surge current. Surge Voltage is the voltage spikes created in electrical network due to lightening , switching of breakers etc. Surge current is large in rush current caused during starting of motors etc in electrical circuits.During switching on of breakers there is sudden rate of change of magnetisation in large transformers which in turn induces surge voltages in system.
answer no. 1 is very good, in addition the equipment failure is happen in case of direct application of power to the equipment as the switching gear (breaker...etc) is reducing this voltage & current spikes rather than its direct application on the equipment