Question

Distinguish between the following:

Fire Insurance and Marine Insurance

Answer 1

Sr. No.	Point of Distinction	Fire Insurance	Marine Insurance
1.	Meaning	A contract in which insurer promises to pay compensation to insured if something happens to the subject matter due to fire or related events.	A contract whereby the insurance company undertakes to pay compensation to the insured in case of loss to him due to dangers (perils) of the sea.
2.	Who takes it	It can be taken by individuals for their properties or by businessmen for their goods, properties business liabilities, etc.	It can be taken by exporters and importers and shipping companies.
3.	Subject Matter	In Fire Insurance, the goods and assets or property of the insured is the subject matter.	In Marine Insurance, goods in ship, cargo and freight is the subject matter.
4.	Insurable Interest	It must exist both at the time of contract and also at the time of loss.	It must exist at the time of loss.
5.	Period	It is generally for a short period, like one year.	It is generally for a short period and may range from one month to a year. Normally, it does not exceed one year.
6.	Compensation	It is paid only if there is loss due to fire during the term of policy.	It is paid only if there is a loss causing event during the term of the policy.