Question

Insured must have insurable interest in the subject matter at the time of taking the policy. (State with reason whether the given statement is true or false)

Answer 1

The given statement is true because in all types of insurance policies, the insured needs to have insurable interest in the subject matter at the time of issuing the policy for its protection.

The insured person should suffer considerable amount of financial or any kind of loss on the damage of the insured object or person.  So the presence of insurable interest is a basic criterion for buying an insurance policy to prevent that loss.