Question

Ramesh took the life insurance policy of his wife. After one year, the couple got divorced and after two years, his wife died in a serious accident. Is Ramesh entitled to get compensation from the insurance company, if he had been regularly paying the premium amount?

Answer 1

Insurable interest is an essential element of all insurance contracts. A person has an insurable interest in his life as well as in the life of his spouse.In case of life insurance, a person must have insurable interest in life of insured at the time of taking policy, but at the time of death of insured, it is not essential to have an insurable interest.   
In the given case, the husband will get compensation from the insurance company, no matter he does not have insurable interest in the life of his wife at the time of her death.

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