Insurable Interest
Gbogbo ọrọ náà
You may insure your own car, but you may not insure your neighbour's. You may insure your own life for any amount, yet you may insure a stranger's for nothing at all. The rule that draws this line is insurable interest, and it is what separates a genuine insurance contract from a bet. Without it, a policy is not merely unpaid at claim time: in law it never existed.
This lesson explains what insurable interest is, the essential features the law looks for before it recognises the interest, and the one point examiners test most: the exact moment the interest must be present, which differs for life, for marine and for fire and motor cover. You will apply the rule to decide who may validly insure what, and see why a policy taken out without it is simply void.
Ebumnobi
- Define insurable interest and explain why the law requires it
- State the essential features that must be present before insurable interest exists
- Explain when insurable interest must attach in life, marine and property insurance
- Apply insurable interest to decide whether a named person may validly insure a stated subject matter
- Explain the consequence of effecting a policy without insurable interest
Akọmọ Ojú-ẹkọ
Yi rajista ka ci gaba
Kpọpụta akaụntụ n’efu ka ị nweta ohere na ihe ọmụmụ niile, ajụjụ omume, ma soro mmepe gị.
Ayẹwo Ẹkọ
Ekele diri gi maka imecha ihe karịrị na Insurable Interest. Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.
Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.
Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.
- Insurable interest is best described as: A. The premium a person pays for a policy B. A legally recognised financial stake a person has in the thing insured C. The profit an insurer makes on a contract D. The affection a person feels for another Answer: B
- In which class of insurance must insurable interest exist only at the time of loss? A. Life assurance B. Fire insurance C. Marine insurance D. Motor insurance Answer: C
- A creditor lends 1,000,000 naira at an agreed interest of 200,000 naira. The maximum insurable interest the creditor has in the debtor's life is: A. 1,000,000 naira B. 200,000 naira C. 1,200,000 naira D. 800,000 naira Answer: C
- A policy effected without any insurable interest is: A. Valid but non-transferable B. Void and treated as a wager C. Payable only in part D. Converted into a life policy Answer: B
- Which of the following persons does NOT have an insurable interest? A. A husband in the life of his wife B. A dry cleaner in the clothes left in his custody C. A man in the new car of a colleague he admires D. A joint owner in the jointly owned house Answer: C
Yi rajista ka ci gaba
Kpọpụta akaụntụ n’efu ka ị nweta ohere na ihe ọmụmụ niile, ajụjụ omume, ma soro mmepe gị.
Yi rajista ka ci gaba
Kpọpụta akaụntụ n’efu ka ị nweta ohere na ihe ọmụmụ niile, ajụjụ omume, ma soro mmepe gị.
Àwọn Ìwé Tó Dáa Láti Kà
Àwọn Ìbéèrè Tó Ti Kọjá
Nna, you dey wonder how past questions for this topic be? Here be some questions about Insurable Interest from previous years.
Yi rajista ka ci gaba
Kpọpụta akaụntụ n’efu ka ị nweta ohere na ihe ọmụmụ niile, ajụjụ omume, ma soro mmepe gị.