Consideration on principle of insurable interest in insurance contract

Abstract

Insurable interest is a fundamental principle of insurance contract as provided by section 863 of the Thailand Civil and Commercial Code. However, the insurance law provides that an insured person is required to have an interest in the event insured against, which this principle is a general provision of the insurance law governing both insurance against loss and insurance on life, which both insurances have differences. Therefore, this research article aims to explain the history, definition and main points of the insurable interest including interpretation, period of time and value of the interest as well as consent of a person insured on life in order to lead to fairness which is the ultimate objective under the true intention of insurance law.