INSURABLE INTEREST

INSURABLE INTEREST

1. The insured must have II to make a claim

   • Without II contract is void/illegal or unenforceable
     • Without II, it's basically gambling.

2. Life policies illegal if no II at time of inception.

   • requires all names of interested parties to be stated in the policy

3. Non-life.

   • For marine policies, if no II at the time of loss, policy is void, not illegal.
   • Insurance on goods, policy must have names and must have II at time of loss.
   • Must have property interest at time of loss ARIF V EIG

4. II for life insurance

   • Insured has an II in his own life WAINRIGHT v BLAND
     • you have II in life of a spouse or fiancé GRFFITHS v FLEMMING
       • Normally no other relatives unless there is a pecuniary interest
   • a creditor has II in the life of his debtor DALBY v INDIA AND LONDON LIFE ASSURANCE

5. II for property insurance

   • without ownership, you may have no II
     • MACAURA V NORTHERN AUURANCE
   • A possessory interest in immovable property can suffice if the possessor has rights of enjoyment in that property or if he is liable for losses. FEHILLY V GA

6. I for liability insurance

   • any legal liability against the insured will confer an II, enough to allow him to cover the potential liability

7. How is II raised?

   • If the insurer doesn't object there are no likely sanctions
   • technically there are some criminal sanctions, but not pursued in practice