Difference between Life, Fire and Marine Insurance - QS Study
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Difference between Life, Fire and Marine Insurance

Life Insurance

  • Subject Matter: The subject matter of insurance is human life.
  • Element: Life Insurance has the elements of protection and investment or both.
  • Insurable Interest: Insurable Interest must be present at the time of effecting the policy but need not be at the time whirl’ I he claim falls clue.
  • Duration: Life Insurance policy usually exceeds a year and Is taken for longer periods ranging from 5 to 30 years or whole life.
  • Indemnity: Life insurance is not based on the principle of indemnity. The sum assured is paid either on the happening of certain event or on maturity of the policy.

Fire Insurance

  • Subject Matter: The subject matter is any physical property or assets.
  • Element: Fire insurance has only the element of protection and not the element of investment.
  • Insurable Interest: Insurable Interest on the subject matter must be present both at the time of effecting policy as well as when the claim falls due.
  • Duration: Fire insurance policy usually does not exceed a year.
  • Indemnity: Fire insurance is a contract of indemnity. The insured can claim only the actual amount of loss from the insurer. The loss due to the fire is indemnified subject to the maximum limit of the policy amount.

Marine Insurance

  • Subject Matter: The subject matter is a ship, cargo or freight.
  • Element: Marine insurance has only the clement of protection.
  • Insurable Interest: Insurable interest must be present at the time when claim falls due or at the time of loss only.
  • Duration: Marine insurance policy is for one or period of voyage or mixed.
  • Indemnity: Marine insurance is a contract of indemnity. The insured can claim the market value of t he ship and cost of goods destroyed at sea and the loss will be indemnified.