2.4 Insurable Interest: Definition, Nature and Duration

The definition: the legal-or-equitable relation to the subject-matter such that the insured benefits from its safety and suffers from its loss. The necessity: the gambling's bar (no interest = the wager — the public-policy core); the indemnity's foundation (the loss measured by the interest). The requirements: the lawful interest (the illegal possession's bar); the present interest in property (life's exception — the insurable interest in one's own life and the dependent's). Thetiming: the property insurances — at the loss's time (the marine's lore); the life-and-fire insurances — at the contract's inception (the life's peculiarities). The duration's faces: the interest's transfer-and-loss; the mortgagee's-and-lessee's interests. The Nepal faces: the Act's insurable-interest requirements; the third-party liability's interest (the liability's interest — the insured's exposure).