MANAGEMENT

Detailed explanation-1: -This principle says that the individual (insured) must have an insurable interest in the subject matter.

Detailed explanation-2: -The Principle of Insurable Interest The insured must have an insurable interest in the subject matter of the insurance contract.

Detailed explanation-3: -The principle of Insurable Interest or Insurable Interest is one of the fundamental principles of insurance. It is defined as the concern of an individual towards obtaining an insurance policy for an item or an individual against any type of unforeseen events such as losses or death.

Detailed explanation-4: -Principle of Insurable Interest According to this principle, you must have an insurable interest in the life that is insured. That is, you will suffer financially if the insured dies. You cannot buy a life insurance policy for a person on whom you have no insurable interest.

Detailed explanation-5: -There must be a relationship between the insured and the subject mater of insurance i.e. insured must benefit from the safety, well being or freedom from liability and would be prejudiced by its loss, damage or the existence of liability. The above relationship must be recognized by law.