Page 65 - Reinsurance Management IC85

The Insurance Times

Q. "Every contract of reinsurance must be
supported by insurable interest." Discuss
with reference to case law.

Ans: The issue of a policy by the direct insurers gives them
an insurable interest, so that they can, if desired,
reinsure. Regarding interest in Uzielli Vs. Boston
Marine Insurance Co. (1884) ISQ: HO II, Lord Brett
it is stated:

"What was the interest of real plaintiffs, the reinsurers
in this slip? They were not owners and, therefore, they
had none as owners. But they have an insurable interest
of some kind and that insurable interest is the loss
which they might or would suffer under the policy, upon
which they themselves were liable".

In another case, Lower Rhine and Wurtemburg

Insurance Association V. Sedgurich(1899) 15 TIR65,

the defendant (a marine underwriter) reinsured certain

risks with the plaintiff. Of the two original policies

covering the risks, one lapsed and the other was

cancelled. 64

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