Essay Example | Topics and Well Written Essays - 750 words - 79

Essay Example For life insurance it is the person, who is claiming the insurance, in case of general insurance the insurable interest must be present at place when the application for insurance is being made as well as during the claim of the insurance. The principle of insurable interest mentioned that the person or the object which is getting insured must have insurable interest in the object of insurance or the life of the person who is being insured. A person who has an insurable interest when the physical presence of the insured object gives him some gain but its non-existence will give him a loss. In simple words, the insured person must suffer some financial loss by the damage of the insured object. The owner of a commercial vehicle (be it a taxi/bus or tempo) has insurable interest in the vehicle because he is earning money by using that vehicle directly or indirectly from it. Same way owner of any bus or tempo or goods vehicle, if give that on rent still have the insurable interest on it as well as the person who is driving the same because indirectly he or she is earning money from it. But, if someone sells the vehicle then he or she will not have an insurable interest left in that vehicle because the individual already have earned money one time basis from the same. By analyzing this we can easily mentioned that ownership plays an important role in the evaluation of insurable interest. Same way every individual person has an insurable interest in his or her own life.. The subject of insurance can be any property or interests such as a house,car, a person’s life, or his or her liability that rises in significance of the death or injury of or damage to the property of another person.In insurance terms, the above-mentioned definition is known as insurable interest.(Korttermynversekering, 2013). The term is associated with sea and inland waterway transport. It means that the seller delivers goods and product