Explain the principle of Insurable Interests. When must Insurable Interest exist in Life Insurance,
Fire Insurance and Marine Insurance?

Explanation

The principle of insurable interest on life insurance is that a person or organization can obtain an insurance policy on the life of another person.



The principle of insurable interest on life insurance is that a person or organization can obtain an insurance policy on the life of another person if the person or organization obtaining the insurance values the life of the insured more than the amount of the policy. In this way, insurance can compensate for loss.


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Fire insurance is property insurance that covers damage and losses caused by fire. The purchase of fire insurance in addition to homeowner's or property insurance helps to cover the cost of replacement, repair, or reconstruction of property, above the limit set by the property insurance policy.



Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.