Distinguish between the following:
Fire Insurance and Marine Insurance
Differences between Fire Insurance and Marine Insurance
|Sr. No.||Point of
|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
|In Marine Insurance, goods in ship,
cargo and freight is the subject matter.
|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
|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.
Concept: Concept of Insurance
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