Question

What is insurable insurance and what is its importance in insurance?

Answer 1

An insurable interest is a stake in the value of an entity or event for which an insurance policy is purchased to mitigate the risk of loss. ... Entities or events not subject to financial loss do not have an insurable interest and an insurance policy cannot be purchased to cover them in the event of loss.

Answer 2

An insurable interest is an object which , if damaged or destroyed , would result in financial hardship for the policyholder .

Importance :-

♥ It is the one of the necessary condition important to create a legally binding valid insurance contract .

♥ Without insurable interest the insurance contract will be void .

♥ It will be seen as a contract of wager which is void as under Section 30 of Indian Contract Act 1872 .

Hope it helps ✌

Shreya ❤