Distinguish Between
Life Insurance and Marine Insurance
The Maharashtra HSC Board – Organization of Commerce and Management – Notes, & Distinguish Between, difference between Life Insurance and Marine Insurance , study notes, studies material, studies notes – according to the New Textbook.
| Sr.No | Basis Difference | Life Insurance | Marine Insurance |
| 1. | Meaning | A contract whereby the insurance company undertakes to pay a certain sum of money either on death or maturity | 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. | Who takes it | It can be taken by an individual for his own life or for his family members. | It can be taken by individuals for their properties or by businessmen for their goods, properties business liabilities, etc |
| 3. | Subject matter | In life Insurance, the life of the Insured is a subject matter. | In Marine Insurance, goods in ship cargo and freight are the subject matter. |
| 4. | Insurable interest | It must exist (live) at the time of contract. | It must exist at the time of loss. |
| 5. | Period | The policy can be issued for any number of years, even until death of the assured. | for a short period and may range from one month to a year. Normally, it does not exceed one year. |
| 6. | compensation | It is paid either on death or maturity whichever is earlier. | It is paid only if there is a loss causing during the term of the policy. |
| 7. | Principle of Indemnity | It is not applicable as a human life cannot be valued in terms of money for calculating the actual loss. | It is applicable as insurance company compensates for the financial loss and the insured is bought back to the same financial condition that he was before the event |
| 8. | Number of policies | Insured can take any number of policies on the same life. | only one policy can be taken. However, double insurance is possible. |
| 9. | Surrendering of policy | The policy can be surrendered before the expiry of the term subject to certain conditions. | It cannot be surrendered |
| 10. | Beneficiary | The beneficiary can be insured {if she/he survives the selected term} or else the nominee or the legal heir on the death of assured | The beneficiary is the insured person or company |