Definition and Explanation of Insurable Interest

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• Definition of insurable interest
• Explanation of the insurable interest

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The term “ Insured Interest ” means the interest of the insured in the insured object or property.

In general, we speak of the insured interest when the insured suffers damage due to the absence of things or things and receives benefits because of the presence of these things or things.

The conditions of insurable interest can be applied differently to the two types of insurance, for example, life insurance should apply to individual life insurance and other types of general insurance ( fire insurance, marine insurance , etc.). Documents on the financial situation of the insured.

The insured interest rate is a very important condition for concluding an insurance contract . Because without an insurable interest in property or life, you cannot obtain an insurance policy.

On the other hand , trust is seen as a sign of the highest level of goodwill .

Therefore, both parties are confident that each party will help in this by providing all the information correctly and meeting all the requirements of the insurance contract.

We now know that the insurance interest rate is a very important factor when taking out insurance and after its term. Therefore, it must first be determined whether the policyholder has an insurable interest in the insurance contract.

The type of interest insured differs between life insurance and general insurance.

For life insurance ...
1. Life itself
2. Mutual life of man and woman
3. The life of parents depends on the generation and generation of parents
4. Accounts Payable Performance Period for Accounts Receivable

For general insurance ...
1. Insurance interest can only be charged on immovable property
Own interest of the insured.
2. The insured must have a material relationship to the property.
3. The insured must have a genuine interest in owning the property

After analyzing the above discussion, it is noted that insurable interest is something that should be covered in an insurance policy.

If there is an insurable interest , a person can purchase an insurance policy. No one has the right to issue an insurance policy without an insurable interest.