Even in gambling or betting, two people make a general agreement that the other person will pay a certain amount if such an event occurs. But it cannot be called insurance because the bet has no independent interest in the event or in the event itself.Therefore, for an insurance contract, the existence of an insurable interest with the components of the general contract is essential. For example, A’s life cannot be insured by a stranger because B has no independent interest in A’s existence or non-existence. But if B is A’s wife, it would be legal for B to insure A’s life, since B has an interest in A’s survival vests.
The meaning of insurance interest is broad. Spouses are clearly interested in each other’s existence. The lender’s interest is valid throughout the life of the borrower. Similarly, for property insurance, the insured interest remains with the owner of that property. This interest is also paid to the person who has the assets available under the contract. Not only that, but through the possession of the property itself, the insured becomes available even if the possession is illegal.For example, if a bankrupt person owns property, that right automatically becomes invalid, because after the bankruptcy has passed, all his property becomes the bankrupt’s right – but the bankrupt also has to insure that property. The officer accepts. The basis arising out of insurance interest by contract may be both liability or interest.
For example, when a person rents a house, he has no responsibility for the security of the house, but the contract provides security to the tenant, so for the security insurance of that house, that tenant also takes insurance. Interest becomes available.