ABSTRACT
The requirement for insurable interest is to be reviewed by the Law Commission. In relation to the most usual form of contingency insurance English law recognises that an assured has an insurable interest in his own life. The 1774 Act also provided, in section 3, that where a policy was made to which it applied, and the assured possessed an insurable interest, they might recover no greater sum than the amount or value of that interest. Few would disagree with the proposition that the law on insurable interest in indemnity insurance is uncertain. Insurable interest based on natural affection is regarded as incapable of pecuniary valuation. In consequence, there is no limit on the amount of cover that may be purchased, either in terms of sum insured or number of policies. Most commentators agree that the law relating to insurable interest should be reformed.
