On The Insurable Interest In The Property Insurance Contract

Insurable interest is a hardcore issue and one of the fundamental principles ofinsurance law. It is also the condition for validity of the insurance contract, whichconcerns the establishment of the insurance contract law system and the validity of thespecific insurance contract. As a key concept of insurance contract law, it comes downto series of systems in this field. However, at an early stage of the study on insurancelaw in China, the development of insurance law lags behind that of other legal area inthe civil and commercial law system. Therefore, it is critical for the future ofinsurance business to improve the regulations of insurance law as soon as possibleespecially the regulations about the insurable interest, the footstone of the insurancelaw. Under that context, by introducing and analyzing the connotation and basicfeatures of insurable interest in the property and casualty insurance contract, thispaper discusses the relation between the insurable interest and the subject-matterinsured, on the base of which it focuses on the main sorts of insurable interest coveredin the property and casualty insurance to explain the types of property and casualtyinsurance in practice needed to be expanded. Then it puts forward new viewpoints onthe validity of insurable interest making references to kinds of domestic and foreigncases, and then it proposes the effective principle China should adopt to estimate theexistence of insurable interest under different situations. Also it questions thenecessity of transferability of the insurable interest and gets a new conclusion. Byanalyzing and discussing the mentioned matters does this paper try to better protectthe interests of the insurant, the insurer and the insured in practice.