The Essence of the Insurable Interest in the Insurance Agreement

Abstract

Insurance is an integral part of society’s social and economic relations. Its importance is increasing day by day. Taking into account the rhythm of modern life, individuals and legal entities need a guarantee that the damage caused to them as a result of an individual incident will be compensated. Insurance is a means of risk distribution and aims to protect a person from losses caused to him based on a negative event, to restore the situation that existed before the action that caused the damage.
The history of insurance dates back to ancient times, which is not surprising, since people have always had the desire to anticipate the probability of an event causing harm to them and to be prepared for such an event. Insurance was formed throughout the ages, taking into account the needs of individuals, problems raised in practice, and the main goal of physical or legal entities - risk reduction.
As of today, insurance is one of the most relevant legal relationships. The number of insurance companies on the market, the competition between them and the number of people seeking insurance are increasing. Therefore, studying the features of insurance is a very important issue.
Based on the above, the concept of insurable interest and its meaning is discussed in the paper. Insurable interest is a mandatory sign of insurance, which not only distinguishes insurance from other legal relationships, but is also a necessary prerequisite for issuing insurance compensation. Therefore, the purpose of the existence of insurable interest, its expression in practice, the influence of the doctrine of insurable interest on the development of insurance, and its relationship with the good faith of the insurer are discussed in the topic. The value of the insurance interest at the pre-contractual stage and at the time of occurrence of the insured event.
As a conclusion, the issues discussed in the topic, the issue of perfecting the legal regulation of insurance, the importance of insurable interest as a necessary element of an insurance contract and a mandatory prerequisite for issuing insurance compensation, and the role of the court in determining its existence are summarized.
The development of the doctrine of insurable interest will significantly increase the good faith of the parties in contractual relations, as well as the consumer’s confidence in the insurance market.