Mr. Insurance shares his knowledge about insurance to educate the general public and to make them aware of its benefits.
The principle of Insurable Interest
March 31, 2008Insurable Interest is very important in insurance. Without insurable interest you cannot insure a property or life. Even you were able to insure a property or life sans the insurable interest, it will be tested in the event of claim. If it is proven that an insured or assured has no insurable interest, he could not claim from the insurance.
You have insurable interest on the property or life, if in the event of loss or death, it will cause you direct financial loss.
Examples of who have Insurable Interest.
- In property, the owners: authorized agents, administrators & executors, husband and wife (in each other’s property), mortgagors & mortgagees.
- In the lives of people: husband and wife, creditors and debtors, partners in a partnership business, corporations in its key personnel.
- In liability: any person in any potential liability he may incur.
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