Insurable Interest in Marine Insurance
Who may insure and claim under MIA 1906 ss.4 to 8, when the interest must exist, and how a cargo buyer takes over the seller's cover.
Insurable interest is the legal or equitable relation to a marine adventure that lets a person benefit from its safe arrival or be prejudiced by its loss (Marine Insurance Act 1906 s.5(2)). It must exist at the time of the loss, not when the insurance is effected (s.6(1)), and Institute Cargo Clauses clause 11.1 says the same.
The full article will cover wagering policies under s.4(2), defeasible and contingent interests under s.7, lost or not lost cover, assignment to a buyer under s.50, and how the Incoterms 2020 CIF and CIP direct right of claim fits alongside it. The cargo insured value article covers how this topic affects the sum insured on a cargo policy.