Question

Distinguish between the following.
Fire insurance and Marine insurance.

Answer 1

Fire insurance: It is a contract where the insurer undertakes to make good any loss or damage caused by fire upto the maturity of the policy for the consideration of the premium. Usually, it is for one year only. The premium may be paid in lump sum or in installments. Here the subject matter is any physical property or assets.

Marine insurance: It is a contract where the insurer undertakes to indemnify the insured in the manner and to the extent agreed against any loss by marine perils or perils of the sea. It is for one voyage or the period of voyage only. The subject matter here is a ship, cargo or freight.