The term insurance means an arrangement by which provides protection against a possible event or the state undertakes to guarantee any loss, damage or death for a specified payment.
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What is Fire Insurance?
Basically, the term fire insurance refers to a form of property insurance to cover any damage or loss caused by fire. “Fire insurance business” means the business, other than incidental, of underwriting for loss or accident by fire or other event covered by fire insurance.
According to this insurance contract, the insurer undertakes to indemnify the insured to a certain extent for a fee. Subject to certain conditions and provisions against loss or damage by fire which may occur during a certain period. This policy is designed to insure property and other items against loss due to fire.
So it is a contract where a person who is looking for insurance protection enters into a contract to compensate for the loss of property or as a result of fire or lightning, explosion, etc.
In the strict sense, a fire insurance contract is:
- The main subject of which is insurance against damage or loss caused by fire.
- The insurer has no interest in the safety or destruction of the insured property apart from the liability assumed under the contract.
What is Marine Insurance?
It is a type of insurance designed to provide cover for the carriage of goods or other items, whether by sea or land. Marine insurance covers the loss of ships, cargo and any transportation by which property is transferred, acquired or held between the point of departure and the final destination.
International shipments are damaged or broken in transit. You need marine policy coverage to protect and keep your cargo safe, and for prompt and competent service in handling your claims.
This policy caters to the needs of both importers and exporters and the coverage is comprehensive with international shipments protected from the moment the goods leave the seller’s warehouse until they reach the buyer’s warehouse.
Depending on the nature and scale of your business, you can opt for the best plan. There are various options you can choose from; the important ones.
This type of insurance provides protection against a wide range of damage that may occur during shipping. These may include sea voyage hazards such as:
1. Collision with a glacier
2. High waves
4. Failure of the ship’s hull
Difference Between Fire Insurance And Marine Insurance
Like fire insurance, it covers losses incurred as a result of a fire and the risks associated with it. Although marine insurance is one that is associated with the risk that the ocean can cause. Includes ship, cargo and goods. In principle, this is a contractual arrangement between the insured.
There are two types of insurance; life insurance and general insurance. Fire and marine insurance is part of life insurance.
A detailed comparison is given below:
Comparison Table Between Fire Insurance And Marine Insurance
|Parameter of Comparison||Fire Insurance||Marine Insurances|
|Subject of matter||The subject matter under the fire insurance is an asset or physical property.||The subject matter under marine insurance is freight, cargo, or ship.|
|Duration||Fire insurance policies usually don’t exceed a year.||The Marine insurance policy is one or more voyages.|
|Risk||When it comes to fire insurance, there is no guarantee of risk. It is possible that property will not catch fire.||Because the occurrence of an event is unpredictable, the risk may or may not arise.|
|Indemnity||Fire insurance is an indemnity contract. Only actual damage is covered by fire insurance.||Marine insurance is also an indemnity contract. The market value of the ship and the price of the destroyed goods can be claimed.|
|Loss||The loss of a human being cannot be measured. The loss is measurable in the case of fire insurance.||Loss is measurable in the case of marine insurance.|
|Goals||The goal of fire insurance is to ensure the safety of the property.||The goal of marine insurance is to protect property.|