Question

Distinguish between the following:

Life insurance & Fire insurance

Answer 1

Difference between Life Insurance and Fire Insurance
Basis of Difference	Life Insurance	Fire Insurance
Compensation	Compensation is paid either at the time of the death of the insured or at the maturity.	Compensation is paid only in the event of loss due to fire. Nothing is paid otherwise.
Duration	The duration of life insurance is long; it is typically from 5 years to more than 25 years.	It does not generally exceed 1 year.
Indemnity	The principle of indemnity does not apply here, as the life of the insured cannot be compensated.	Compensation is based on the principle of indemnity.
Insurable interest	Insurable interest must exist at the time of taking the policy and not necessarily at the time of receiving the claim.	Insurable interest must exist at the time of taking the policy and also at the time of receiving the claim.
Subject matter	The life of the insured is the subject matter.	The goods and property of the person make the subject matter.
Measurement of loss	Loss incurred cannot be measured.	Loss incurred can be measured.