WAEC Commerce 2000 Theory question 101

(a) Any four, described: hull insurance (covers the ship and its machinery against perils of the sea; voyage or time policy); cargo insurance (goods carried against loss or damage in transit); freight insurance (covers the freight the owner would lose if cargo is not delivered); ship owner's liability insurance (third-party/collision claims, damage to docks, injury to crew/passengers); time policy; voyage policy; fleet policy; mixed policy.
(b) Indemnity insurance restores the insured to the financial position he was in before the loss, so he cannot profit; the loss can be valued in money. Examples: fire, marine, motor, burglary/theft.
Non-indemnity insurance pays an agreed sum because the loss (life, limb) cannot be measured in money. Examples: life assurance (whole life, endowment), personal accident, annuity.

In (b) the key word is whether the loss can be measured in money.