Distinction between Life, Marine and Fire Insurance
Life assurance differs from the fire and marine insurance within the following respects:
Distinction purpose between, life insurance, insurance & Marine Insurance severally !!!
Nature of contract
It is a normal contract whether or not it’s straightforward or pure however the principle of indemnity doesn’t apply in its contract. It is a contract of indemnity.
Nature of event
The event (death) that’s thought-about in insurance may be a bound event that is guaranteed to manifest itself sooner or later.
The event (fire) that belongs to the present contract is unsure which can or might not manifest itself.
The event (sea perils) that belongs to the present policy is unsure which can or might not manifest itself or which can happen part.
The whole of the assured total becomes collectible on the maturity of the policy.
Under fireplace insurance contract solely the particular value of the property or gods destroyed by fire may be claimed from the non depository financial institution. In alternative words there’s not any profit motive.
Under marine insurance contract, not solely is that the price of products destroyed the ocean perils however additionally 100% to fifteen margin of anticipated profit and shipping charges collectible by the underwriter.
Life policy covers a bigger period and can’t be canceled by the non-depository financial institution.
The period vary of such kind of insurance is from ten days to twelve months. but it will be revived once the expiration of amount.
Some varieties area unit issued for specific voyage however alternative policies cowl a amount of twelve months most.
Determination of premium
The determination of premium rate is easy. Same rate of premium could also be charged for all the persons falling within the same age bracket.
In insurance risk square measure extraordinarily varied, thus the premium rates additionally vary violently.
In marine insurance risks square measure extraordinarily varied, therefore, the premium rates additionally vary violently.
It has surrender value once 3 years of its existence.
Insurable interest should exist once the policy is taken however needn’t at the time of the loss.
Insurable interest should gift each at the time of the policy taken and at the time of loss.
Insurable interest should exist at the time of the loss however needn’t gift once the policy is taken.
Assignment of policy
It are often appointed to a different person once serving notice to the insurance underwriter.
As it is personal contract between the insurance underwriter and guaranteed thus he assign his policy while not the previous consent of the insurance firm.
As the merchandise might amendment many hands throughout the voyage thus policy is also transferred along side the transfer of the possession in merchandise. it’s not essential to serve notice to the insurance firm at the time of assignment.
The world “Assurance” is usually used along side life contract because of its certainty of events (death)
The word “Insurance” is usually used along side fireplace contract because of its uncertainty of events.
The word “Insurance” is usually used along side marine contract because of its uncertainty of events.
Doctrine of subrogation
The principal of exchange isn’t applicable to insurance.
The principal of exchange is to be applied to the current kind of contract.
The principal of exchange is to be applied to marine insurance.
Right of Credit
As there’s surety to refund the quantity insured thus life policy holder will get the loan against his policy in time of would like.
Fire policy holder cannot relish the credit facilities against his policy because of absence of surety to refund the add insured.
Marine policy holder cannot relish the credit facilities against his policy because of absence of surety to refund the add insured.