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EORUPA ACADEMY

Q. No. 26: What is insurance? Give differences insurance and marine insurance? among life insurance, fire

I N S U R A N C E
DIFFERENCE AMONG LIFE INSURANCE, FIRE INSURANCE AND MARINE INSURANCE LIFE INSURANCE The life insurance is not a contingent contract. The risk of life will be there. The purpose of life insurance is to protect the source of income. The time period of policy is many years. FIRE INSURANCE 1: CONTRACT The life insurance is & contingent contract 2. RISK The risk of fire loss may be there. 3. PURPOSE The purpose of fire insurance is to protect the loss. MARINE INSURANCE The marine insurance is a contingent contract. The risk of marine loss may be there. The purpose of marine insurance is to protect the loss.

4. TIME life The time period of I re policy The purpose of marine is for one years. insurance is to protect the loss. 5. PREMIUM The premium paid of life The premium paid of fire The premium paid of insurance is recoverable. insurance is not recoverable. marine insurance is not recoverable. 6. INTEREST The person must have The person must have The person must have insurable interest in the insurable Interest in goods insurable interest in goods life or owned. insured in the fire insurance. insured in marine insurance. 7. COMPENSATION The compensation is paid The compensation is paid up The compensation I paid in full in life insurance. to the value of actual loss in upto the actual value of fire insurance. loss in marine insurance. 8. SURRENDER The life policy has The fire policy has no The marine policy has no surrender value. surrender value. surrender value. 9. MEDICAL The medical examination The sock or property value is The goods are examined by is necessary by medical determined by the values in experts in marine officer in life insurance. fire insurance. insurance. 10. PROFIT The life policy can share in The fire policy holders have The marine policy holders profit of the company. no rights in profits. no rights in profits. 11. VALUE The person can buy policy The policy is purchased upto The policy is procured upto upto any value in life the value of assets in fire value of goods in marine insurance insurance. insurance. 12. INSTALLMENT The premium is payable in The premium us paid in The premium is paid in installment in life lump sum in fire insurance. lumsump in marine

Prepared By: H.ABD 03UL REHMAN

0321-6485593

EORUPA ACADEMY
insurance. The assignment of policy requires notices in life insurance. The policy can be used as security for loan in life insurance. 13. ASSIGNMENT The assignment of policy requires prior consent in fire insurance. 14. LOAD The policy cannot be used as security for loan in fire insurance. insurance. The assignment of policy requires no notice in marine insurance. The policy cannot be used security for loan in marine insurance. The policy is not considered investment in marine insurance. The loss may be total or pas on such policy in marine insurance. The principle of subrogation is application in marine insurance. The principle of contribution is application in marine insurance. The basis of claim is proximate cause in marine insurance. The average clause is application in marine insurance.

15. INVESTMENT The policy is considered as The policy Is not considered investment in life as investment in fire insurance. insurance. 16. LOSS There is full loss in this The loss may be double or policy in life insurance. partial on such policy in fire insurance. 17. SUBROGATION The principle of The principle of subrogation subrogation is not is application in fire application in life insurance. insurance. 18. CONTRIBUTION The principle of The principle of contribution contribution in not is application application in life insurance. 19. PROXIMATE CAUSE The proximate cause is not The basis of claim is application in life proximate cause in fire insurance. insurance. 20. AVERAGE CLAUSE The average clause is not The average clause is application in life application in life insurance. insurance.

Prepared By: H.ABD 03UL REHMAN

0321-6485593