Distinguish Between
Fire Insurance and Marine Insurance
The Maharashtra HSC Board – Organization of Commerce and Management – Notes, & Distinguish Between, difference between Fire Insurance and Marine Insurance , study notes, studies material, studies notes – according to the New Textbook.
| Sr.No | Basis of
difference |
Fire Insurance | Marine Insurance |
| 1. | Meaning | A contract which insurer promises to pay compensation to insured if something happens to the subject matter due to fire or related events. | A contract whereby the insurance company undertakes to pay compensation to the insured in case of loss to him due to danger (perils) of the sea. |
| 2. | Subject matter | In fire Insurance, the goods and assets or property of the insured is the subject matter. | In Marine Insurance, goods in ship cargo and freight are the subject matter. |
| 3. | Period | It is generally for a short period like one year. | It is generally for a short period and may range from one month to a year. Normally, it does not exceed one year. |
| 4. | Who takes it | It can be taken by exporters, importers and shipping companies. | It can be taken by individuals for their properties or by businessmen for their goods, properties business liabilities, etc. |
| 5. | Insurable interest | It must exist both at the time of contract and also at the time of loss. | It must exist at the time of loss. |
| 6. | compensation | It is paid only if there is loss due to fire during the term policy. | It is paid only if there is a loss causing during the term of the policy. |
| 7. | Beneficiary | The beneficiary is the insured who has insured the property or good | The beneficiary is the insured person or company |