ABSTRACT
No insurable interest or expectation of acquiring such an interest As was seen, the very essence of a contract of marine insurance is that of indemnity. This necessarily means that an assured who has no insurable interest in the subject-matter insured, in the sense as defined in s 5(2), would not be able to show that he has suffered a loss. In the words of s 5(2), he is not ‘prejudiced by its loss or by damage thereto, or by the detention thereof’. Such a contract, where the assured has not an insurable interest as defined by the Act, is deemed to be a gaming or wagering contract and, therefore, void by s 4(1). Where the policy is void, the general rule is that the assured is, by s 84(3)(a), entitled to a return of premium. But as such a contract is forbidden by the Marine Insurance (Gambling Policies) Act 1909, the premium is not refundable by reason of illegality – a defence specifically laid down in the said section.
