Insurable Interest

This article describe about Insurable Interest, which is defined as the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc. It is a basic requirement for the issuance of an insurance policy, making it legal and valid and protecting against intentionally harmful acts. It means that the policy holder or the beneficiary must stand to suffer a direct financial loss if the event against which the insurance cover was bought does occur. Typically, insurable interest is established by ownership, possession, or direct relationship.