Mr. Sanjay 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.(i) Can Mr. Sanjay take a life insurance policy for his wife and children?(ii) Can Mr. Sanjay take a marine in…

Answer:

1. (i) Yes. Mr. Sanjay has insurable interest in the lives of his wife and his dependent children, so he can take life insurance policies (e.g. a children’s policy) on their lives.
2. (ii) No. Marine insurance covers risks of sea voyage to the ship, cargo and freight. Factories on land are not exposed to marine perils, so a marine policy cannot be taken for them.
3. (iii) Fire insurance. He should take a fire insurance policy. Since he has factories at two places, a floating policy or a comprehensive policy can cover both under one policy.