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

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

1. (a) Yes. Mr. Anil has an insurable interest in the lives of his wife and his daughters, because they depend on him and he would suffer a loss on their death. A husband can insure his wife’s life and a parent can take a policy on the life of a minor child.
2. (b) No. Marine insurance covers risks of the sea voyage to the ship, cargo and freight. His factories are on land in Pune and Nashik, so they cannot be covered by marine insurance.
3. (c) Fire insurance. A fire insurance policy will compensate him for loss or damage to his factory buildings, machinery and stock caused by fire.