Question

Distinguish between Life Insurance, Fire Insurance, and Marine Insurance.

Answer 1

1. Life insurance is a long-term contract, whereas fire insurance and marine insurance are annual contracts.
2. Life insurance is not a contract of indemnity, whereas fire and marine insurance are contracts of indemnity.
3. In life insurance, insurable interest must exist at the time of taking the policy. In marine insurance, insurable interest must exist at the time of loss. In fire insurance, it must exist at both the times.
4. In fire and marine insurance, the average clause is applicable. In life insurance, the average clause is not applicable.
5. In life insurance, the assignment of the policy is allowed. But it is not allowed in fire and marine insurance.