Page 80 - Ebook health insurance IC27

The Insurance Times

 The insured must have an insurable interest in the subject of insurance
 The insurer insurance the financial or pecuniary interest of the policyholder in the

subject matter of insurance and not the subject matter itself
 The insured must have a relationship with the subject matter of insurance and he

must be affected by loss or damage to the property

Insurable interest may be created by
 Common law
 Contract
 Statute

Presence of Insurable Interest
 A person has insurable interest to the extent of any potential liability which may be

incurred by way of damages or other costs and liability insurance it is very difficult
to determine the extent of interest as there is no way to determine how often one
may incurthe 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.

8 4 Guide for Health Insurance