Classes of persons who are deemed to have an insurable interest in a subject matter of insurance

Where the assured is so situated that the happening of the event of which the insurance money is to become payable would, as approximate cause, involve the assured in the loss or diminution of any right recognized by law, or in any legal liability, there is an insurable interest in the happening of that event to the extent of the possible loss or liability.

Describe six classes of persons who are deemed to have an insurable interest in a subject matter of insurance.

Classes of persons who are deemed to have an insurable interest in a subject matter of insurance

  • A person has an unlimited interest in his own life.
  • A man has an unlimited interest in the life of his wife: Griffiths vs. Fleming
  • A woman has an unlimited interest in life of her husband: Reed vs. Royal exchange assurance Co
  • A lady has an insurable interest in the life of her fiancee, for his contract to marry her is recognized by the common law as having pecuniary value, and the remedy for breach of promise to marry is in damages. Similarly, a man has an insurable interest in the life of his fiancee.
  • A child has an insurable interest in the life of his supporting father
  • A creditor has an insurable interest in the life of the debtor to the extent of the debt: Godsall vs. Boldero.
  • A master has an insurable interest in the life of his servant to the extent of the value of the services agreed to be rendered: Simcock v Scottish Imperial Insurance Co.
  • A servant has an insurable interest in the life of his master to the extent of his remuneration for the agreed period of service
  • A partner has insurable interest in the life of other partners. ( Beauford vs. Saunders)
  • A surety has insurable interest in the life of his co-sureties.



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