Mataracy
VIP Contributor
The insurable interest must be present at:
(1) Time of contract , that is in the inception of the policy.
(2) Time of a loss
(3) Both at the time of contract and or the time of a loss.
However , the legal position differs from one class insurance to another.
The position in Life Assurance is govern by Life Assurance Act 1744. Though the act did not specify when the interest is required hence it is for the court to determining.
But in the case of Dalby V . The Indian and London Life Ass. co (1854) where it was held that interest must be present at the inception of the contract and not at the the of loss. In this case , the contract effected by a proposer on the life of another .
The insurance reassured the contract by reason of its insurable interest creates by the contract and on the death of the life assured, claim from the company with which it had been surrendered before the death of the life assueed. This claim succeeded because the insurable interest was presentvat the inception of the policy.
It would amount to fraud to create an interest for a short period in order to legalize an assurance for a longer period which would otherwisevbe illegal for want of interest.
(1) Time of contract , that is in the inception of the policy.
(2) Time of a loss
(3) Both at the time of contract and or the time of a loss.
However , the legal position differs from one class insurance to another.
The position in Life Assurance is govern by Life Assurance Act 1744. Though the act did not specify when the interest is required hence it is for the court to determining.
But in the case of Dalby V . The Indian and London Life Ass. co (1854) where it was held that interest must be present at the inception of the contract and not at the the of loss. In this case , the contract effected by a proposer on the life of another .
The insurance reassured the contract by reason of its insurable interest creates by the contract and on the death of the life assured, claim from the company with which it had been surrendered before the death of the life assueed. This claim succeeded because the insurable interest was presentvat the inception of the policy.
It would amount to fraud to create an interest for a short period in order to legalize an assurance for a longer period which would otherwisevbe illegal for want of interest.
