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Explain the principle "insurable interest".

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Explain the principle "insurable interest".

Posted by Dolly ?️ 6 years, 10 months ago

CBSE > Class 11 > Business Studies

1 answers

Pranjal Tripathi 6 years, 10 months ago

It is must that the insured has insurable interest in the property, object or life which is insured i.e, insurable interest is the subject matter of insurance. Insurance does not cover the property, object or life but it covers the potential loss which the insured might suffer due to risk of loss in such property, object or life.

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