| Life Insurance | Marine 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. | Marine insurance is a contract of indemnity against loss or damage to cargo (goods) or ships arising due to perils of sea. |
| 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. | Marine insurance policy is taken by importers, exporters and shipping companies. |
| 3. Subject matter | In life insurance, the life of the insured person is a subject matter. | In marine insurance, goods lying in the ship, cargo and freight are the subject matter. |
| 4. Period | Life insurance is usually a long term contract, usually more than ten years or even death. | Marine insurance is usually for a short period which may range from one month to a year. |
| 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 marine insurance as insurance company indemnifies the financial loss to bring back insured in the same financial condition that he was before the event. |
| 6. Insurable Interest | In life insurance contract, insurable interest must exist at the time of contract. | The insurable interest must exist at the time of the contract and also at the time of happening of the event. |
