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Sunday, 26 June 2011

Difference or Distinguish between Life insurance and marine insurance

We can distinguish between life insurance ,marine insurance under the following heads :

1. NATURE OF CONTRACT :-
Life insurance : Life insurance is not the contract of indemnity.
Marine insurance : Marine insurance is a contract of indemnity.

2. DURATION PERIOD :-
Life insurance : Life insurance covers larger duration.
Marine insurance : Marine insurance is issued for a specified period but maximum period is not more than one year.

3. CREDIT FACILITY :-
Life insurance : Against the life insurance policy credit can be obtained.
Marine insurance : Against marine insurance policy credit can not be obtained.

4. TAX CONCESSION :-
Life insurance : In case of life insurance sometimes income tax concession is granted.
Marine insurance : In case of marine insurance tax concession is not granted.

5. NATURE OF EVENT :-
Life insurance : The event of death which is considered the base in the contract of life insurance is death which is certain.
Marine insurance : In marine insurance the event of sea perils may take place or may not take place.

6. SECURITY AND INVESTMENT :-
Life insurance : Life insurance possess the element of security and investment both.
Marine insurance : Marine insurance includes the element of security only.

7. TITLE :-
Life insurance : The word Assurance is generally used along with life policy due ti its certainty.
Marine insurance : The word insurance is used along with marine due to its uncertainty.

8. INSURABLE INTEREST :-
Life insurance : Insurable interest must exist when insurance policy is taken but no need at the time of loss.
Marine insurance : When the marine insurance policy is taken insurable interest may not exist but these should exist at the time of loss.

9. DOCTRINE OF SUBROGATION :-
Life insurance : In the life assurance it is not applicable.
Marine insurance : In case of marine insurance it is applicable.

10. SHARE IN PROFIT :-
Life insurance : In a life insurance insured person also takes the share from profit.
Marine insurance : In case of marine insurance not profit is paid.

11. TRANSFER OF LOSS :-
Life insurance : In case of loss insured person can not transfer the loss to insurance company.
Marine insurance : In case of marine insurance loss can be transferred to insurance company.

12. SURRENDER VALUE :-
Life insurance : Life insurance policy has a surrender value after three years of its existence.
Marine insurance : Marine insurance does not have any surrender value.

13. DETERMINATION OF PREMIUM :-
Life insurance : The life insurance policy premium determination is very simple and do not change
Marine insurance : Marine insurance premium rate changes according the change in risk.

14. CLAIM LIMIT :-
Life insurance : In the life assurance after maturity whole of the assured amount becomes payable.
Marine insurance : In case of marine insurance contract, shipping charges, plus 10% to 15% margin of anticipated profit and cost of goods destroyed by sea perils are payable by the insurance company.

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