Question
Difference between General Insurance and Life Insurance
| Points | General Insurance | Life Insurance |
| $1.$ Period of duration | Period of duration of general insurance is one year. | The period of duration of life insurance is more than one year. |
| $2.$ Certainty of Risk | In general insurance risk is uncertain. | In life insurance, normally the risk is certain. |
| $3.$ principle of Insurance | In general insurance all the four principles of insurance are applicable . | In life insurance principle of indemnity and principle of subrogation are not applicable. |
| $4.$ Saving . | In general insurance protection against risk is obtained. If no accident occur during fixed period then premium paid is not returned. | In Life insurance protection is obtained against risk. Along with it if the policy holder does not die within fixed period, the amount of paid is returned to the insurance. Thus it is a sort of compulsory saving. |
| $5.$ Insurable Interest | In general insurance insurable interest should exist while taking insurance and paying compensation for loss both the times. | In Life insurance insurable interest is considered only when insurance is taken. |
| $6.$ premium | In general insurance premium increase as he risk increase. | In Life Insurance the amount of premium does no vary even if the risk increase. |
| $7.$ Number of policy | One and Only one policy of the same type can be held for the same thing. | More than one insurance policy of Life of one person can be taken, the maturity amount is paid to the policy holder or to his/ her legal heir in case of death. |
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