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What is insurable interest? Please explain in easy language as i can't understand.... pls reply as soon as possible

Dear student,

Insurance interest means some pecuniary interest in the subject matter of contract of insurance. It is the interest that a person has on a property which is insured. A person has an "insurable interest" in something when loss or damage to it would cause that person to suffer a financial loss or certain other kinds of losses. Person who buys a policy must have an insurable interest in the subject of the insurance.

In every type of insurance there exists an insurable interest:

1. at the time of insuring; and

2. at the time of loss.



Regards

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Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence, without impairment or damage, of the insured object (or in the case of a person, their continued survival). A person has an insurable interest in something when loss of or damage to that thing would cause the person to suffer a financial or other kind of loss.
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Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence, without impairment or damage, of the insured object (or in the case of a person, their continued survival).
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