Insurable interest

There are conditions to your insurance policy being valid, so we’ve put these three points together to help you understand the basic requirements for you to make a successful claim.

For insurance to be valid the insured must:

1. Benefit from the survival of the subject matter insured, or
2. Suffer when loss or damage to the matter insurer occurs, or
3. Incur liability in respect of the subject matter insured.

In the absence of any of these interests, known as an insurable interest, the insurance policy will be an invalid contract and the insurer will not pay out. Every person has an insurable interest in their own life and spouses are deemed to have an interest in each other’s lives. Similarly, if you own a vehicle you would suffer when damage occurs to the vehicle and would also have an interest in protecting yourself from any liability to third parties incurred by you from the operation of the vehicle.