What is “Insurance Interest”? Is it possible for a couple be mutual insured?
Yoko has a boyfriend who has been staying with her since three years ago. Their feelings are very stable and wish to stay together in the future. However, both of their finance is not stable, they plan to marry after the next few years. Next week is the couple anniversary of them and Yoko’s boyfriend plan to buy her an insurance. However, they heard that there is no “Insurance Interest” for couple and couple cannot be insured.
What is the “insurance interest”? Why we can’t buy insurance if there is no “insurance interest”.
The purpose of the insurance system is to share the insured’s risk at the time of the insured event through the community. The occurrence of an insured event is based on unpredictable or force majeure. Therefore, if the insurance accident occurs, is based on purposely, for someone scamming the insurance compensation, then the good intention of insurance system will be lost. In order to avoid the aforesaid circumstances, the insurance law, in particular, provided that ” A proposer means a person who has an “insurable interest” on the subject-matter insured and who applies to the insurer for an insurance contract and has a duty to pay the premium.” Furthermore, the insurer or the insured has no “insurable interest” on the insured, and the insurance contract is ineffective in order to avoid moral hazard.
The so-called insurance interests refer to the insured to the subject matter of insurance there is an interest. The term “insured” is the property insured under property insurance, and life insurance refers to the life, body or health of the insured person. Therefore, we say that “insurance interest” does not mean that the insurer is to benefit from insurance, but that the insured must have a certain interest in the object of insurance. Since the insurer must have an insurable interest in the subject matter of the insurance, what kind of person or thing should the insurer be considered to have insurance benefits?
In property insurance, in the subject-matter insured or the insured person has an economic value, that is, the subject matter of the insured or destroyed or lost to guarantee The insured person or the insured person may have an “insurable interest” in the loss of property.
The insured interest in life insurance, in accordance with the law (may vary depend on county), the insured to the following person’s life or physical insurable interest:
1) I want to stay safe:
I want my life has the greatest interest, of course, with the insurance benefits.
2) the family:
The so-called “family”, in accordance with the provisions of Article XIII of the Civil Code: “Parents home with the family, in addition to parents, are family members, though not permanent relatives to live together for the purpose Cohabitation and family. “Therefore, it can be said that all those who cohabitate for the purpose of permanent cohabitation are” family members “, with the exception of their parents, regardless of whether they are relatives or not. Parents and their families live together, close, there may be living now or in the future economic interests, so the insured for the life of the family or the existence of insurance interests of the body.
3) The cost of living or education fees to the people:
The so-called living expenses or education fees to the people, refers to the actual supply of living expenses or education costs. Since such persons have a practical economic interest in the insured, and therefore whether or not they are living with the guarantor, whether or not they are relatives. And this kind of insurance interest has scholars called “one-way insurance benefits” because it exists only in the cost of living or education is provided between the supplier and the supplier, the supplier shall not be insured for the insured person insured personal insurance.
4) The debtor:
The debtor for the debtor, with the economic interests of the debt, because the debt can be paid, and the debtor is to survive, death is closely related. Therefore, the creditor has an insurable interest on the debtor, the debtor’s life or body to be the subject of insurance, and insurance companies enter into an insurance contract. The insurance benefits, except the principal owed by the debtor, shall include the interest and insurance premiums, but shall not exceed the damage that may be suffered by the guarantor, and the excess shall be the insurable interest.
5) for the management of property or interests of the person:
The guarantor for the management of property or interests of the people, with the management of economic interests, it is the existence of insurance interests. Such as a manager of a firm, a director of a corporate organization, a supervisor or a shareholder in a business.
In addition to the insured interest in the lives of the aforementioned persons and the body, the insurers, in accordance with Article 20 of the Insurance Law, provide that “benefits arising from a valid contract are insurable.” Therefore, A person who may have a right or duty based on a valid contract is insured for the insured.
So, the relation between Yoko and her boyfriend seems not fulfill one of the requirements above. Therefore, Yoko’s boyfriend cannot buy her an insurance, until he becomes the leader of home or has a stable finance.
What if Yoko and her boyfriend have entered into a marriage agreement? will the situation become different?
This is controversial in the doctrine of the adoption of certain say that the marriage also belongs to the insurance law (may vary depend on country) the “effective contract”, so in accordance with the law of the unmarried couple can be the insured and the insured. However, the negative argument that the insurance law applies only to property insurance, and personal insurance is not applicable, so there is no insurance interest between husband and wife.
Therefore, in order to avoid the validity of the insurance contract in the future disputes, whether Yoko and her boyfriends are couples or unmarried couples, or to insure themselves and the insured person insurance contract is the most reliable.