| Life Insurance | Fire Insurance |
| 1. Meaning | Life insurance is a contract whereby the insurance company in consideration of a premium, undertakes to pay a certain sum of money either on death of assured person or on maturity of policy whichever is earlier. | Fire insurance is a contract of indemnity against loss or damage to goods or property arising from fire or related events. |
| 2. Who takes it? | Life insurance policy is usually taken by an individual for his own life or for the benefit of his family members. | Fire insurance policy is taken by individuals, property owners or businessmen for their goods and business properties. |
| 3. Subject matter | In life insurance, the life of the insured person is a subject matter. | In fire insurance, the property, assets or goods of the insured is the subject matter. |
| 4. Period | Life insurance is usually a long term contract, usually more than ten years or even death | Fire insurance contract is generally for one year or even for a lesser period. |
| 5. Principle of indemnity | The principle of indemnity is not applicable to life insurance contract because life of human being cannot be valued in terms of money for calculating actual loss | The principle of indemnity is applicable to fire insurance contract because the amount of loss of property can be calculated easily. The amount of loss or the policy amount whichever is less is paid to the insured. |
| 6. Insurable interest | In life insurance contract, insurable interest must exist at the time of contract. | In fire insurance contract, insurable interest must exist both at the time of taking policy and also at the time of event. |
