Insurable interest Flashcards
Explain insurable interest
Gain financially from it existence, suffer financially from its loss
What case defined insurable interest?
Lucena v Craufrurd in 1806
Legal definition of Lucena v Craufrurd in 1806
“A man is interested in a thing to whom advantage may arise or prejudice happen from the circumstances which may attend it; and whom it imports, that its condition as to safety or other quality should continue”
What is the difference between insurance and gambling
Insurable interest, gambling is where you hope it happens to make a profit, insurance is where you hope it doesn’t happen
Does insurance cover emotional damage
No only the financial interest you have in the item (usually the replacement cost)
What are you insuring when you insure an item
The financial interest in the item
Is ownership a requirement for insurable interest
NO
What policies must have insurable interest?
All policies: Life and non-life
What do the Life Assurance Act 1774 and life assurance act (Ireland) 1886 say the porous of insurable interest is in life insurance
Must exist to prevent “mischievous kinds of gaming”
Common law basis of insurable interest
Lucena v Craufrurd in 1806
Who has insurable interest
- Owner of the item
- Shareholder (proportionally)
- Tenents to bespoke improvement of the building
- Family members in life insurance assuming financial dependency
- Indirect loss
What case sets precedent to ownership = insurable interest,
O’Leary v. Irish national
Explain the development of insurable interest for shareholders
Macaura v. Northern Assurance [1925]: Orignaly shareholders do not have insurable interest but this changed in;
Carrigan Ltd. and Carrigan v. Norwich Union Fire Society Ltd and others [1987] : Insured pro-rata insurable interest in assets of the company
President for indirect loss
Glengate-KG Properties v. Norwich Union Fire Insurance Society Ltd. [1996]
President for tenants with bespoke improvements
Church and General Insurance Company v. Connolly and McLoughlin [1981]
