In all types of insurance, insured must have insurable interest both at the time of insurance and atthe time of loss. Do you agree?

Dear Student,

Insurable interest is one of the important principle of insurance. Insurable interest is an interest in a person or a thing so much that loss of that specific thing or person would cause financial loss or other kind of loss.

The concept of insurable interest came about to support an insurance company for an insurance policy. According to this principle, the insured must gain something with the existence of subject that has been insured and incur loss with the destruction of the subject insured. For instance, you have an insurable interest in your car so you can get your car insured but if you apply for insurance policy for neighbours' car then that won't support the principle of "insurable interest."

Hence, the above statement is correct.

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