Question

if their is a question difference between life insurance,fire insurance and marine insurance and their is one basis given insurable interest than what is the answer of these three​

Answer 1

Answer:

Explanation:

Let us take a look at how the system of a life policy works.

The policyholder pays the insurer a premium, which is generally paid on an annual basis. The amount of this premium depends on a variety of factors such as the health of the policyholder, occupation, medical history, and many such factors.

The insurance company pays the “sum assured” to the beneficiaries of the policy at the death of the insured, or at the end of the term

The insured can also borrow money against his own life policy

There are broadly two types of life policies- Term Policy and Whole Life Policy. Whole life policy will pay out whenever the policyholder will die. Term Policy is set for a term i.e. a certain number of years. Here the insurance covers the term and if the insured dies during the term, the policy will pay out. If the insured survives the term then there is no payout.

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Fire Insurance

A fire insurance is a contract between the policyholder and the insurer. Here the insurance company will pay to the policyholder any loss caused to him or his particular property when destroyed by a fire accident. So the protection is against any damage that the fire causes.

Here the policyholder pays an annual premium. And if a fire breaks out and causes damage to the property the insurance company will pay to the extent of the damages up to the insured amount. If the damages exceed such amount the company will not be liable for the excess amount. And if during the term such an incident does not occur, the premium amount will obviously lapse.