Insurable Interest: The assured must possess an actual interest in the insurance’s subject matter, also known as an insurable interest. If a person benefits from the existence of the thing in question and suffers harm from its destruction, this is referred to as having an insurable interest in the thing in question (property or life). The insurance contract is null and void if there is no insurable interest. A contract for insurance is different from one for gambling since it has insurable interests.
The real estate that is mortgaged to a banker in exchange for a loan carries an insurable interest. One’s own life is of insurmountable interest to them. A creditor has the option to insure his debtor’s life. The building that a person owns is subject to insurable interest.
Because he has a financial stake in them, an employer can insure the lives of his employees. An entrepreneur has insurable interest in his stock, equipment, building, etc. Both the wife’s and the husband’s interests are in the lives of the other