Question

Distinguish between :
Fire Insurance and Marine Insurance.

Answer 1

Fire Insurance:-

The subject matter under this contract is any physical property or assets. The insurable interest in the subject matter should be there at the time of taking the policy as well as at the time of claiming the damages caused. A fire insurance policy generally is only for a period of one year. It is a contract of indemnity where the insured cannot claim any amount more than the actual loss.

Marine Insurance:-

The subject matter under this contract is a ship, cargo or freight. The insurable interest in the subject matter should be present at the time of claim. A marine insurance policy is for a period or for a particular voyage. In this case, the insured can claim the market value of the ship and actual cost of the goods.