i-law

Insurance Disputes

3

INSURABLE INTERESTS

DAVID BAILEY, QC AND JOCELIN GALE


Page 61

3.1 A traditional feature of a contract of insurance is that the insured has an “insurable interest” in the subject matter of the insurance. It is the potential effect upon the insured of the occurrence of a future risk that most obviously distinguishes a contract of insurance from a simple wager.1 A premium so called would be no more than a stake if the insured had no interest in the subject-matter of the contract other than the amount he had wagered and the risk of fraudulent claims would be increased.

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