Question

Discuss the various points of difference between life insurance and fire insurance.

Answer 1

Differences between. Life Insurance and Fire Insurance:

$\begin{array}{ccc}\text{Basis}& \text{Life Insurance}& \text{Fire Insuracne}\\ 1.\text{Subject matter}& \text{The subjet matter of insurance is}& \text{The subject matter is any physical}\\ & \text{human life.}& \text{property or assets.}\\ 2.\text{Element}& \text{It has element of protection as well}& \text{It has element of protection only.}\\ & \text{as investment.}& \\ 3.\text{Insurable interest}& \text{Insurable interestt must be present}& \text{Insurable interest must be present}\\ & \text{at the time of taking the policy.}& \text{at the time of talking policy as well}\\ & & \text{as at the time of loss.}\\ 4.\text{Duration}& \text{Generally it ranges from 5 to 30}& \text{Duration is one year only.}\\ & \text{years or for whole life.}& \\ 5.\text{Indemnity}& \text{Principle of indemnity does not ap}& \text{Principle of indemnity is appicable.}\\ & \text{ply as loss of life is not measurable.}& \text{So on the happening of the uncertain}\\ & & \text{event,the actual loss surrered by the}\\ & & \text{insured is indemnifired by insurer as}\\ & & \text{here the loss is measurable}\end{array}$