What is the difference between fire insurance and life insurance on the basis of limit of amount?
Fire insurance is for a short duration whereas life insurance is for a lifetime or until the maturity of the policy. Only one Fire insurance policy can be taken by a person but there is no limitation for the number of policies in the case of life insurance.
What is insurable interest in marine insurance?
Section 5(2) of Marine Insurance Act 1906 states “that person has an insurable interest who benefits safety or due arrival of the property or is prejudiced by its loss, or damage thereto, or by detention thereof, or may incur liability in respect thereof, and stands in a legal or equitable relationship to the adventure …
What is insurable interest in fire insurance?
Insurable interest will be there where the subject-matter should be in such a position that the insured may suffer loss at the time of damage and may gain by its protection. The insurable interest in fire insurance must be present at the time of contract continue throughout its currency and at the time of loss.
Is fire covered in Marine insurance?
As the name suggests, the marine insurance is a type of insurance in which the damage to the ships, boats and the goods carried by them is covered.
|Fire Insurance||Marine Insurance|
|Policy amount is not more than the value of the property.||Policy amount may be equal to the market value of the cargo or ship.|
What is fire insurance class 11?
A fire insurance is a contract between the policyholder and the insurer. Here the insurance company will pay to the policyholder any loss caused to him or his particular property when destroyed by a fire accident. So the protection is against any damage that the fire causes.
How is fire insurance different from insurance?
Life Insurance is having the life insured of the policy maker upon his death. Fire Insurance is the insurance against any loss caused due to fire to the policyholder.
What is the purpose of fire insurance?
Fire insurance has been designed to reimburse the cost of repair, reconstruction or replacement of the property damaged or destroyed in a fire. Besides, fire insurance also covers property loss or damages due to smoke, water and damages caused by the firefighters.
What is the meaning and purpose of fire insurance explain?
Fire insurance is a legal contract between an insurance company and the policyholder which guarantees that any loss or damages caused to the policyholder’s property in a fire will be paid by the insurance company. Fire insurance provides coverage against incidents of accidental fire, lightning, explosion, etc.
What are the basis of marine insurance?
The fundamental principles of Marine Insurance are drawn from the Marine Insurance Act, 1963* As in all contracts of insurance on property, the contract of Marine Insurance is based on the fundamental principles of Indemnity, Insurable Interest, Utmost Good Faith, Proximate Cause, Subrogation and Contribution.
What are the basis of Marine Insurance What are its essential elements How insurable interest and insurable value is determined explain?
Marine insurance is based on the insurable interest in the property. Although it is important to note that it is not essential for the insured to have an insurable interest at the time of effecting the insurance. Instead, he/she should have such an interest in due course of time.
What are different types of fire insurance?
Valued Policy: Under Valued Policy, the value of a subject matter is decided, upon which the insurer pays if it is destroyed or damaged. This policy doesn’t work on the principle of indemnity. The agreed value that is compensated can be more or less than the market price.