Differentiate between life and non-life insurance?
Most life insurance contracts are contracts of assurance whereas all the non-life insurance contracts are contracts of insurance. Life insurance contracts are essentially long-term in nature whereas non-life insurance contracts are short-term in nature (mostly for one year, with a few exceptions). Non-life insurance contracts are contracts of indemnity whereby actual loss incurred by the insured is indemnified. Life insurance contracts are known as benefit contracts because there cannot be indemnification for the loss of human life.
Most life insurance contracts are contracts of assurance whereas all the non-life insurance contracts are contracts of insurance. Life insurance contracts are essentially long-term in nature whereas non-life insurance contracts are short-term in nature (mostly for one year, with a few exceptions). Non-life insurance contracts are contracts of indemnity whereby actual loss incurred by the insured is indemnified. Life insurance contracts are known as benefit contracts because there cannot be indemnification for the loss of human life.
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