The Insurable Interest Doctrine- Indian Perspective

DR. RAM MANOHAR LOHIYA NATIONAL LAW UNIVERSITY

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The Insurable Interest Doctrine

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Name: Sukriti Guha Roll No.: 142 Semester: VIIIth Class: B.A., LL.B. (Hons.) Subject: Insurance Law Submitted to: Ms. Aparna Singh

TABLE OF CONTENTS

I. Introduction II. Can there be any valid insurance agreement without insurable interest? III. Creation of insurable interest IV. Wager and insurance V. Types of insurable interest VI. Time or duration of insurable interest VII. Insurable interest vis-à-vis life insurance contract VIII. Insurable interest vis-à-vis marine insurance contract IX. Insurable interest vis-à-vis fire insurance contract X. Conclusion

Bibliography

I. INTRODUCTION
The aim of insurance is to shift risk from one person (the insured) to another (the insurers). In insurance contract as a matter of public policy, certain insurable requirements must be met, to make it valid. Insurable interest is one of the basic requirements of the insurance. Without it the insurance contract is a mere wagering agreement.

In India it is strange that the Insurance Act 1938 does not contain a definition of insurable interest. The only section, namely section 68, which makes a passing reference to the words 'insurable interest’ stands repeated by section 48 of The Insurance Amendment Act 1950. Briefly stated there is no legislative guidance in Indian law on the subject but still