Difference between Life, Marine, and Fire Insurance
Basis |
Life Insurance |
Fire Insurance |
Marine Insurance |
---|---|---|---|
Subject Matter | The subject matter under life insurance is human life. | The subject matter under fire insurance is an asset or a physical property. | The subject matter under marine insurance is freight, cargo, or a ship. |
Risk | Risk is unavoidable when it comes to life insurance. The insured amount is paid either when the policyholder reaches maturity or when he or she dies (whichever is earlier). | When it comes to fire insurance, there is no guarantee of risk. It is possible that the insured property will not catch fire. | Because the occurrence of an event is unpredictable, the risk may or may not arise. |
Time frame | Life insurance policies are usually for a longer period of time (more than 5 years). | Short-term fire insurance. In most cases, it is one year. | Short-term marine insurance. In most cases, it is one or a voyage period, or a mix of both. |
Insurable Interest | Insurable interest must be present when purchasing a life insurance policy. | Insurable installments interest must exist both at the time of purchase and at the time of loss. | In the case of marine insurance, insurable interest must exist at the time of loss. |
Payment of the Premium | Life insurance is paid in installments. | Fire insurance is purchased on a one-time basis. | Marine insurance is based on a lump sum payment. |
Indemnity Agreement | If an indemnity, life insurance is not a contract. In life insurance, the insured person receives payment on the maturity date or after the happening of a certain event. | Fire Insurance is an Indemnity contract. In fire insurance, only the actual loss is covered. | Marine Insurance is an indemnity contract. The market value of the ship and the cost of goods destroyed can be claimed by the insured. |
Loss Measurement | One cannot measure the loss of a human being. | Loss is measurable in the case of fire insurance. | Loss is measurable in the case of marine insurance. |
The Goal |
The goal of a Life insurance policy is to provide a safety net and a wise investment. | The goal of Fire Insurance is to provide security to the property. | The goal of Marine Insurance is to protect one’s belongings. |
Difference between Life, Marine, and Fire Insurance
Individuals and property owners in the modern world use insurance as one of the most important safety nets. Insurance is essentially a bond that you sign with a bank or your insurance provider, in which the insurance provider promises to pay you a specific amount in the event of an emergency or if you are required to pay a large sum of money to someone. In exchange, you must pay a monthly premium to the banks, which is calculated based on your package and requirements. In this way, the respective banks earn money from all of the people who have signed up for the insurance scheme, and in exchange, they pay the amounts to those who need the insurance. Life, Marine, and Fire Insurance are three types of insurance used by individuals and property owners as their safety nets.