Advertisements
Advertisements
Question
Is insurable interest necessary in all insurance contracts?
Solution
Yes, insurable interest is necessary in all insurance contracts. Insurable interest is an essential element in every insurance contract. In the absence of insurable interest, a contract of insurance becomes a wagering contract, which is null and void and unenforceable at law.
APPEARS IN
RELATED QUESTIONS
Choose the Correct Answer.
The basic principle of insurance is ________
The insurer is liable for insured perils only and not for unexpected uninsured ones. This is the principle of ______.
Assertion: The concept of insurable interest is fundamental to all insurance contracts.
Reasoning: It ensures that the insured has a legitimate financial interest in the subject matter insured.
Explain in brief the Principle of Subrogation.
Name the principle of insurance under which the insurer stands in place of the insured after settlement of claim in relation to the insured property.
"The insured must disclose all material facts and the insurer must make clear all the terms and condition in the insurance contract." Which principle of insurance is referred to in this statement?
"The insurer undertakes to put the insured, in the event of loss, in the same position that he occupied before the event." Which principle of insurance is referred to in this statement?
What is insurable interest?
Explain 'contribution' as a principle of insurance.
"Principle of contribution is a corollary to the principle of indemnity." Comment.
