A person can have insurable interest in something, a loss of which will affect the insurer financially. A person has insurable interest on any property that owns or is in possession. As far as Life Insurance is concerned, everyone has insurable insurances upon their own lives and also upon the lives of their spouses, children and dependants. This may also include business partners of people with whom joint properties are being held and people upon whom one is financial dependant. In case of property and casualty interest, the insurable interest must exist at the time when the policy is being made and also at the time when the damage is caused. The Insurances I n UK are governed by Statutes like Life Assurance Act, 1774, according to which such contracts are illegal and the Marine Insurance Act, 1906, Section 4 of which also states such contracts as void.
