Question
Difference between Fire Insurance and Life Insurance
| Points of Difference | Fire Insurance | Life Insurance |
| $1.$ Objective | To obtain protection against loss due to fire, fire insurance is taken. | To obtain protection against risk of Life along with the intention of financial savings , Life insurance is taken. |
| $2.$ Certainty of Risk | It is certain that when fire will occur and how damage will be. | Man’s death is sure but its time is not certain. |
| $3.$ Duration of Insurance | Fire insurance is taken for one year period. | Life insurance can be taken for long period. |
| $4.$ principle of Indemnity | In Life insurance policy the o=principle of indemnity is strictly followed. | In Life insurance principle of indemnity is not considered. Compensation is predefined. |
| $5.$ Insurable Interest | At the time of taking fire insurance and when it matures, it is necessary to have insurable interest of insure. | While taking life insurance insurable interest is necessary but when it matures insurable interest is not required. |
| $6.$ Certainty of Compensation | The compensation is not fixed. It depends on the loss occurred by fire. | In Life Insurance amount is fixed while it is taken. It is certain. |
| $7.$ principle of Subrogation | In fire insurance principle of subrogation is applicable. | In Life Insurance principle of subrogation is not applicable. |
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