Page 60 - Ebook IC S01
P. 60
Survey And Loss Assessment IC-S01
Insurable interest may be created by
Common law
Contract
Statute
A person has insurable interest to the extent of any potential liability which may
be incurred by way of damages or other costs
In liability insurance it is very difficult to determine the extent of interest as there
is no way to determine how often one may incur the liability
An expectation of acquiring insurable interest in future also does not create a
valid insurable interest
In fire, miscellaneous business, and marine hull policies the insurable interest
must exist at the time of commencement of the policy and also at the time of loss
In marine cargo insurance the insurable interest must exist at the time of the loss
In life insurance the insurable interest must exist at the commencement of the
contract
No person can benefit from his own deliberate, fraudulent or criminal acts by taking
an insurance policy. Insurance does not compensate fraudulent subject matter. In an
indemnity policy for doctors the insurance company will not pay if the doctor has
deliberately given a wrong medicine to the patient
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