Difference Between Fire, Marine and Life Insurance Part 3

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Table of Basis Difference between Fire, Marine and Life Insurance
Title: Table of basis Difference Between Fire, Marine and Life Insurance

Basis Difference

Fire Insurance

Marine Insurance

Life Insurance

Compensation

Amount insured or Actual loss which

ever is less is given as compensation.

Purchase price of goods and 10-15 percent profit is given as compensation

No loss is

compensable only specific amount is paid.

Insurable Interest

interest Insurable

must exist both at

the time of taking

policy as well as

the time of loss.

Insurable interest

must exist at the

time of loss.

Insurable interest

must exist at the

time of taking

policy.

Assignment of Policy

No Assignment without permission of Insurance Company.

No Assignment

without permission

of Insurance Company.

No Assignment

is done.

Nature of Risk

Uncertain

Uncertain

certain but the time is uncertain.

Period

Normally for one year

Normally for one year

It is taken for long term.

Premium

Premium depends upon the amount insured. More the amount insured more will be the Premium.

Premium depends

upon nature of

perils

Premium depends

upon the age of

the insured and

term of policy.

Object

To cover the risk of fire.

To cover the sea perils

Protection and Investment.

Surrender

Cannot be surrendered before expiry

Cannot be surrendered before. expiry.

can be surrendered maturity.

Other Types of Insurance

Other than life, fire and marine insurance, general insurance companies can insure a variety of other risks through different policies. Some of these risks and the different policies are outlined below.

Types of Insurance

Types of Insurance

Types of Insurance

Motor Vehicles Insurance

Insurance of all types of motor vehicles passenger cars, vans, commercial vehicles, motor cycles, scooters, etc., covers the risks of damage of the vehicle by accident or loss by theft, as also risks of liability arising out of injury or death of third party involved in an accident. Third party risk insurance is compulsory under the Motor Vehicles Act.

Burglary Insurance

Under this insurance the insurance company undertakes to indemnify the insured against losses from burglary i.e., loss of moveable goods by robbery and theft by breaking the house.

Fidelity Insurance

As a protection against the risks of loss on account of embezzlement or defalcation of cash or misappropriation of goods by employees, businessmen may get policies issued covering the risks of loss on account of fraud and dishonesty on the part of employees handling cash or in charge of stores. This is called fidelity insurance policy. The employees may also be required to sign a fidelity guarantee Bond.

Personal Accident and Sickness Insurance

These are policies which can be taken out against death or disability in special circumstances, for example by traveling through flights, etc.

Liability Insurance

This type of policy covers the risk of liability for the injury or death of someone else. These are two main forms as

  • Employers liability- covers the employer’s legal liability for the safety of each employee.

  • Public liability- covers the liability of individuals and business for members of public visiting their premises.

Property Insurance

Covers a wide variety of items from goods in transit or in store to building or contents. Applies to both the business persons and the private householders.

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