Question
What is the difference between life, fire and marine insurance?
| S.No. |
Basis
|
Life Insurance
|
Fire Insurance
|
Marine Insurance
|
| 1. |
Subject Matter
|
Subject matter of insurance is human life.
|
Subject matter of insurance is physical property or assets.
|
Subject matter of insurance is ship, cargo or fright.
|
| 2. |
Purpose
|
Protection and investment both.
|
Protection only.
|
Protection only.
|
| 3. |
Insurable Interest
|
It must be present at the time of acquiring the policy and it is not necessary at the time of maturity.
|
It must be present at the time of contract and also when claim falls due.
|
It must be present at the time when claim falls due.
|
| 4. |
Policy Amount
|
It can be any amount.
|
It can't be more than the value of subject matter.
|
It can't be more than market value of goods.
|
| 5. |
Duration
|
It is taken for long duration like ranging from 5-30 years or whole life.
|
It is taken for one year.
|
It is taken for one year or period of voyage or mixed.
|
| 6. |
Indemnity
|
It is not based on principle of indemnity.
|
It is based on principle of indemnity.
|
It is based on principle of indemnity.
|
| 7. |
Measurement of Loss
|
Not possible
|
Possible
|
Possible.
|
| 8. |
Surrender Value
|
It has a surrender value, i.e., it can be surrendered before maturity.
|
It does not have a surrender value.
|
It does not have a surrender value.
|
| 9. |
Contingency of risk
|
Element of risk is certain because amount has to be paid either on death or on maturity whichever is earlier.
|
Element of risk is uncertain as mishappening may not take place.
|
Element of risk is uncertain as mishappening may not take place.
|
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