Question

Study the following case/situation and express your opinion:

Mr. Sharad is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years old:

1. Can Mr. Sharad take a life insurance policy for his wife and 2 children?
2. Can Mr. Sharad take a marine insurance policy for his factories?
3. Which types of insurance should Mr. Sharad take for protecting his factories from loss due to fire?

Answer 1

1. Yes, Mr. Sharad can take a life insurance policy for his wife and children. A life insurance policy provides financial security to his family in case of an unfortunate event. Policies like term insurance, endowment plans, or child insurance plans can be beneficial for their future.
2. No, Mr. Sharad cannot take a marine insurance policy for his factories because marine insurance is meant for covering risks related to the transportation of goods via sea, air, or land. However, if he transports goods or raw materials between Pune and Nashik, he can take a marine insurance policy for that transportation.
3. Mr. Sharad should take a fire insurance policy to protect his factories from fire-related losses. Fire insurance covers damages caused by fire, lightning, explosions, and other fire-related accidents. He can choose from different types of fire insurance, such as comprehensive fire insurance or specific fire insurance, depending on his factory's needs.