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Question
Distinguish between the following:
Fire Insurance & Marine Insurance
Solution
| Basis of Difference |
Fire Insurance | Marine Insurance |
| Compensation | Compensation is paid only in the event of loss due to fire. Nothing is paid otherwise. |
Compensation is paid only in the event of loss due marine perils. Nothing is paid otherwise. |
| Duration | It does not generally exceed one year. |
It is generally done for one year or for the period of voyage. |
| Subject matter | The goods and property of the person make the subject matter. |
The goods in ship, cargo and freight make the subject matter. |
| Insurable interest |
Insurable interest must exist at the time of taking the policy and also at the time of receiving the claim. |
Insurable interest must exist at the time of receiving the claim or at the time of loss only. |
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