DIFFERENCE AMONG LIFE INSURANCE, FIRE INSURANCE, AND MARINE INSURANCE

DIFFERENCE AMONG LIFE INSURANCE, FIRE INSURANCE, AND MARINE INSURANCE..

Basis of Difference
Life Insurance
Fire Insurance
Marine Insurance
Risk
The risk of death is certain. The time and place of death is not known. The amount of policy is paid to the assured if the policy natures during his life time or to his nominee in case of death.
The risk is not certain. It is not necessary that the goods insured will catch fire.
The risk is not certain There m or may not be marine losses
Purpose.
The object of life insurance is to provide financial protection to the family members and promotion of thrift. It is a good investment.
The purpose is to get claim if the insured property catches
fire.
The object is to get compensat on actual loss.
3.
Time period.
The life insurance policy is for a longer period say 10, 15, 20 years.
This policy is sold for short period say one year. It may be renewed at the close of a year.
The marine policy, is for a speci short of time which does exceed 12 months or it is for specified voyage..
Premium,
The premium is worked out on the age of the insured and the time of the policy.
The premium is determined on the type of rick involved. The greater the risk of fire, the higher is the rate of premium and vice versa.
The premium is decided on nature of the risk undertake