Sr.
No.
|
Basis of
Difference
|
Life Insurance
|
Marine
Insurance
|
1.
|
Meaning
|
A contract
whereby the insurance company undertakes to pay a certain sum of money either
on death or maturity (whichever earlier for a consideration (premium)
|
A
contract whereby
the insurance company undertakes to pay compensation to the insured in case
of loss to him due to danger (perils) of the sea.
|
2.
|
Who takes it
|
It
can be
taken by an individual for his own life or for his family members.
|
It
can be taken by individuals
for their properties or by businessmen for their goods, properties business
liabilities, etc.
|
3.
|
Subject matter
|
In
life Insurance, the life
of the Insured is a subject matter.
|
In Marine
Insurance, goods in ship cargo and freight are the subject matter.
|
4.
|
Insurable interest
|
It
must exist (live) at the time of contract.
|
It must exist
at the time of loss.
|
5.
|
Period
|
The policy can
be issued for any number of years, even until death of the assured.
|
It
is generally for a short period and may range from one month to a year.
Normally, it does not exceed one year.
|
6.
|
compensation
|
It
is paid either on death or maturity whichever is earlier.
|
It
is paid only
if there is a loss causing during the term of the policy.
|
7.
|
Principle of Indemnity
|
It
is not applicable
as a human life cannot be valued in terms of money for calculating the actual
loss.
|
It
is applicable
as insurance company compensates for the financial loss and the insured is
bought back to the same financial condition that he was before the event
|
8.
|
Number of policies
|
Insured
can take any number of policies on the same life.
|
Generally, only
one policy can be taken. However, double insurance is possible.
|
9.
|
Surrendering of
policy
|
The policy can
be surrendered before the expiry of the term subject to certain conditions.
|
It
cannot be surrendered.
|