Business Studies

Distinguish between : 
Marine insurance and Fire Insurance.


SOLUTION

BASIS FOR COMPARISONFIRE INSURANCEMARINE INSURANCE
MeaningFire insurance is an insuance contract wherein the insurer commits to compensate the insured in case of any incident happening with the subject matter due to fire or any such event.Marine insurance refers to a contract, wherein the insurance company promises to compensate the insured in case of loss caused to ship or cargo due to perils of sea.
Insurable interestMust exist both while taking the policy and on the occurrence of loss.Must exist when the loss takes place.
ObjectiveTo cover fire risk.To cover sea perils.
ClaimLower of amount insured or actual loss sustained.Purchase price of the material plus 10-15% profit.
Moral responsibility of insuredImportant conditionDoes not exist
Policy amountIt cannot be more than the value of subject matter.It can be the market value of the cargo or ship.
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