Question

State any 3 differences between Fire and Marine Insurance.

Answer 1

$\begin{array}{ccc}\text{Basis}& \text{Fire Insurance}& \text{Marine Insurance}\\ \text{1. Subject matter}& \text{The subject matter is any physical}& \text{The subject matter is a ship, cargo}\\ & \text{property or assets}& \text{or freight}\\ \text{2. Duration}& \text{Five insurance policy usually does}& \text{Marine insurance policy is for one or}\\ & \text{not exceed a year}& \text{period of voyage or mixed}\\ \text{3. Indemnity}& \text{The insured can claim only the}& \text{The insured can claim the market}\\ & \text{actual amount of loss from the}& \text{value of the ship and cost of goods}\\ & \text{insurer. The loss due to the fire is}& \text{destroyed at sea and the loss will be}\\ & \text{indemnified subject to the maxi-}& \text{indemnified}\\ & \text{mum limit of policy amount}& \end{array}$