Distinguish Between – Life Insurance and Marine Insurance

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.NoBasis DifferenceLife InsuranceMarine Insurance
1.MeaningA contract whereby the insurance company undertakes to pay a certain sum of money either on death or maturityA 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 itIt 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 matterIn 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 interestIt must exist (live) at the time of contract.It must exist at the time of loss.
5.PeriodThe 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.compensationIt 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 IndemnityIt 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 policiesInsured can take any number of policies on the same life.only one policy can be taken. However, double insurance is possible.
9.Surrendering of policyThe policy can be surrendered before the expiry of the term subject to certain conditions.It cannot be surrendered
10.BeneficiaryThe beneficiary can be insured {if she/he survives the selected term} or else the nominee or the legal heir on the death of assuredThe beneficiary is the insured person or company

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