Life Insurance and Marine Insurance
Q.4 (iv) Life Insurance and Marine Insurance
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Answer: Life insurance vs marine insurance
| Point | Life Insurance | Marine Insurance |
|---|---|---|
| 1. Meaning | Contract in which the insurer pays a fixed sum on death of the insured or on maturity of the policy. | Contract in which the insurer compensates loss to ship, cargo or freight due to perils of the sea. |
| 2. Subject matter | Human life. | Ship, cargo and freight. |
| 3. Indemnity | Not a contract of indemnity, since loss of life cannot be measured in money. | A contract of indemnity; actual loss up to the sum insured is paid. |
| 4. Insurable interest | Must exist at the time of taking the policy. | Must exist at the time of loss (for cargo policies). |
| 5. Period | Long term, e.g. 10, 20 or 25 years, or whole life. | Short term, usually for a voyage or a period up to one year. |
| 6. Surrender value | Policy has surrender value and can be used as security for a loan. | No surrender value. |
| 7. Element | Protection plus saving and investment. | Only protection against risk. |
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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