The Second Principle of Insurable Interest
Posted: Wed Feb 19, 2025 9:22 am
This second principle is made up of the following:
financial loss;
the loss was caused by the peril insured against;
the subject matter was covered by the policy;
insurable interest.
An insurer normally requires:
The assured may benefit by the safety or due arrival of insurable property or be prejudiced by its loss, damage, or detention in respect of which he/she may incur liability;
The assured stands in a legal or equitable relationship to the adventure or to any italy mobile database insurable property at risk in such adventure; and
The benefit, prejudice or incurring of liability referred to in the first bullet point above, must arise in consequence of the legal or equitable relationship referred to in the second bullet point.
The Third Principal of Utmost Good Faith
The third and final principal of utmost good faith is embodied in The Marine Insurance Act.
A contract of marine insurance is a contract based upon the utmost good faith, and, if the utmost good faith is not observed by either party, the contract may be voided by the other party. The duty of utmost good faith requires both parties to ensure proper disclosure of all material circumstances and to avoid making misrepresentations about material facts, circumstances or beliefs.
financial loss;
the loss was caused by the peril insured against;
the subject matter was covered by the policy;
insurable interest.
An insurer normally requires:
The assured may benefit by the safety or due arrival of insurable property or be prejudiced by its loss, damage, or detention in respect of which he/she may incur liability;
The assured stands in a legal or equitable relationship to the adventure or to any italy mobile database insurable property at risk in such adventure; and
The benefit, prejudice or incurring of liability referred to in the first bullet point above, must arise in consequence of the legal or equitable relationship referred to in the second bullet point.
The Third Principal of Utmost Good Faith
The third and final principal of utmost good faith is embodied in The Marine Insurance Act.
A contract of marine insurance is a contract based upon the utmost good faith, and, if the utmost good faith is not observed by either party, the contract may be voided by the other party. The duty of utmost good faith requires both parties to ensure proper disclosure of all material circumstances and to avoid making misrepresentations about material facts, circumstances or beliefs.