Life Insurance Marine Insurance

Basis of Difference

Life Insurance

Marine Insurance


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.


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.

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.

Insurable interest

It must exist (live) at the time of contract.
It must exist at the time of loss.


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.

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.

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

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.

Surrendering of policy
The policy can be surrendered before the expiry of the term subject to certain conditions.

It cannot be surrendered.

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