MANAGEMENT

Detailed explanation-1: -The insured must have an insurable interest in the subject matter of the insurance contract. The owner of the subject is said to have an insurable interest until s/he is no longer the owner.

Detailed explanation-2: -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-3: -Principle of Insurable interest This principle says that the individual (insured) must have an insurable interest in the subject matter.

Detailed explanation-4: -Basic Principles of Insurance In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.

Detailed explanation-5: -It means that if the proximate cause of the loss is insured then the insurer is liable to pay the compensation to the insured.