Maharashtra State BoardHSC Commerce 12th Board Exam
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Distinguish Between the Following:Fire Insurance and Marine Insurance - Organisation of Commerce and Management

Distinguish between the following:

Fire Insurance and Marine Insurance

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Solution

Differences between Fire Insurance and Marine Insurance

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, 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.
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