Insurable interest in insurance

Insurable interest in insurance

 

Insurance interest of the insured - a necessary prerequisite for the conclusion of an insurance contract 
The risk that is taken for insurance should be implemented in some form of financial loss, and very easy to advance to warn the situation that a person can insure a house or a car of another person, and after this property will be harmed, he, along with the owner of the property, I would receive the indemnity. Developing this idea further, one would assume a situation where there would not be the slightest obstacle to the fact that a man was walking around the hospital and bought life insurance policies of those people whose health was poor.
  Insurance as an object of interest in insurance
The owner of the property - the insurance carrier of interest.
Property interest - interest in the safety of property, income, health, life, and so on. D.
Insurable interest - the legal right to insurance occurs when a person has a legal relation to property insurance. This means that the person will receive income from the preservation of the property or that he will be harmed in the event of such damage.
To counteract this possibility, it has developed one of the basic doctrines of insurance - a person, fear that any should bear the financial loss in the event that the insured risk materializes.
Insurable interest should be of a legally recognized relationship to the insured the insurance object. For example, possession, use and disposal of assets; location dependent, and so on. d.
Thus, depending on the interest that is insured, insurance primarily divided into two major types: property and personal.
They are fundamentally different in two ways. Firstly, as the name implies, with property insurance insurable interest must be associated with a specific property and interest in personal insurance is not associated with the property, and with the insured person.
In property insurance, insurable interest can act in the following ways:
ownership of the object of insurance;
the right to lease the property;
responsible for other people's property, taken for temporary storage, processing or repair.
All of these options relate to property insurance. They insurable interest is always limited by the actual value of the property. Therefore, property insurance is based on the principle of compensation in actual size within the sum insured. In this regard, the insurance of property insurance amount can not exceed the actual cost at the time of conclusion of the contract (insurance value). In the case of insurance with several insurers the same interest against the same risks as the total sum insured exceeds the actual value of the insured property, there is a double insurance. In addition, each of the insurers shall be liable only within the limits of the actual value of the property and in proportion to the sum insured under the contract.
When liability insurance associated with the reimbursement of material damage caused to a third party, the insurable interest is not to entail the liability for the obligations. Since the size of possible damage can not be determined in advance in a contract of liability insurance the insured amount is not established, and the limit of liability of the insurer, that is. E. The maximum amount within which he undertakes to indemnify the insured caused damage to third parties.
In contrast, property and liability insurance in the life insurance insurable interest is not limited. Every person has unlimited insurable interest in his own life and health. Therefore, the sum insured is not limited. The contract of personal insurance the insurance sum is set by agreement between the insurer and the insured.
In life insurance, the concept of damage is not used. We can only talk about the payment of the agreed sum insured of the expiry of the contract or when the insured event.
The principle of insurable interest imposes some restrictions on life insurance and other types of personal insurance. In most countries, it is prohibited to insure the lives of children, parents, other relatives, and especially strangers. The exceptions are some types of insurance coverage of children and spouses. In the latter case, there are two options. Either one of the spouses themselves and insures the other, or insure themselves and appoints the other as the beneficiary.
There are types of life insurance with a limited insurable interest. Creditors, grant a loan a large sum of money, the insurance becomes a limited interest in the life of his debtor. Based on this fact some form of life insurance related to credit relationships (credit, mortgage insurance). A condition of the loan can be an insurance contract of his own life by the debtor for the amount and maturity of the loan, showing the lender as the beneficiary.
The law defined the interests of insurance that are not allowed: illegal interests; losses from participation in games, lotteries and betting; expenses to which a person may be forced in order to free the hostages.
Insurance is not permitted by the law of interest makes the insurance contract void as a whole.
Also, the following restrictions:
under the insurance risk of liability for breach of contract can be insured only the responsibility of the insured risk;
at insurance of property of the insured amount exceeds the insured value of the property, making the contract null and void in the part of this excess.