Mr. Sharad is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years old :(a) Can Mr. Sharad take a life insurance policy for his wife and 2 children?(b) Can Mr. Sharad take a mar…

Answer: (a) Yes (b) No (c) Fire insurance

1. (a) Yes. Mr. Sharad has an insurable interest in the lives of his wife and his dependent children, because he would suffer emotional and financial loss in case of their death. So he can take life insurance policies on their lives.
2. (b) No. Marine insurance covers risks of ships, cargo and freight during sea voyages. Factories in Pune and Nashik are not exposed to marine perils, so a marine policy is not suitable for them.
3. (c) Fire insurance. He should take a fire insurance policy (for example a specific, comprehensive or consequential loss policy) for his factory buildings, machinery and stock, so that loss due to fire is compensated by the insurer.