On The Principle Of Insurable Interest

The interest of insurance should be a kind of combination of economic interests and advantages or disadvantages relationship belonging to the insured towards the insurable object. The combination should be closely related with the risk transferring and legal for purpose of the payment of damages. Because the object of insurance includes property and person, the interest of insurance can be divided into the insurance interest of property and the insurance interest of person. In the insurance interest of property, it can be demonstrated by tangible or existing property, and can be demonstrated by intangible or expected right, liability, and credit.It is usually said that the development of insurance interest theory has experienced three phases including: the theory of common insurance interest, the theory of technical insurance interest, the theory of economic insurance interest. The insurance interest is significant in the insurance contract, and it is one of valid essences of the insurance contract, it even becomes the basic principle of the insurance contract. Attaching importance to the insurance interest helps to comply with the basic concept of the insurance rule, but also to protect the spirit of the insurance rule deeply. The nature of the insurance interest is comprehensive. It is reasonable that the insured is the subject of the insurance interest. When the insurance interest exists will be decided by the difference of the insurance object. Referring to the property insurance, the insurance interest need not exist when the insurance contract is established, however,when the insurance accident happens, the insurance interest must exist. Now turn to the person insurance, the person insurance interest must exist when the contract is established. The insurance interest existence will not do matter when the insurance accident happens. The responsibility of providing proofs is special, which is completed by the insurer 'proving that the insured did not implement the responsibility of notice immediately. The insurance interest is compounded. According to the difference of the insurance object, the insurance interest can be divided into the insurance interest of property and the insurance interest of person.