Insurable interest in South African insurance law : anachronism or essential requirement

Abstract

This research comprises an analytical analysis of insurable interest doctrine, exploring its scope and application within indemnity insurance contracts. The statutory definition of insurable interest is explored while investigating its historical usage. The study examined how this doctrine should be applied in the present day, considering the economic state in South Africa. Even though South African insurance law and its principles originate from the Roman-Dutch insurance law and mainly concerned itself with corporeal property, it is English insurance law and its application of insurable interest, that have been consistently applied over the years and have prevailed over the common law-derived principle of insurable interest. Despite its significance, uncertainty remains regarding its application today. The central question revolves around whether insurable interest should remain an essential requirement in indemnity insurance contracts or be considered an anachronism. A comparative analysis is conducted among the scope, application, and statutory definition of insurable interest in South African law and its English counterpart. This study aimed to establish a clear and beneficial statutory definition, scope, and application of the insurable interest doctrine, aligning with the South African legal framework and benefitting insured parties and insurers in indemnity insurance contracts.