Answer:
Ans. It is summarized in the table given below:
Basis
Life Insurance
Fire Insurance
Marine Insurance
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.
Purpose
Protection and investment both.
Protection only.
Protection only.
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.
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.
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.
Indemnity
It is not based on principle of indemnity.
It is based on principle of indemnity.
It is based on principle of indemnity.
Measurement of Loss
Not possible
Possible
Possible
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.
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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