1.

Differentiate between Life Insurance and Fire Insurance on any four basis​?

Answer»

ANSWER:

Life Insurance: Risk is certain. The insured amount is paid either on maturity period or at the DEATH of policy holder (which is earlier).

Fire Insurance: Risk is not certain in fire insurance. The insured property may not catch fire.

2. Period

Life Insurance: Life insurance policy is generally of longer period (more than 5 years).

Fire Insurance: Short period. Generally of one year.

3. Insurable Interest

Life Insurance: While taking life insurance policy, insurable interest must exist.

Fire Insurance: Insurable interest must exist at the time of taking fire insurance policy and at the time of loss also.

4. CONTRACT Of Indemnity

Life Insurance: Not a contract if indemnity. Insured person gets payment on the maturity DATE in life insurance.

Fire Insurance: Contract of indemnity. Only actual loss is indemnified in fire insurance.

Explanation:

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