- limited financial loss insurable interest
- A clerk insured his employer's life with two insurance companies for £5,000 and £2,500 respectively.
- On the employer's death the first insurer paid out £5,000
- the second refused the claim for £2,500, for lack of insurable interest.
- The clerk had a 7 year fixed term contract of employment at an annual salary of £600. His employer had also lent him £4,700,
promising him that he need not repay it while his employer was alive.
- The court, however, found that only the
employment was an interest recognised at law.
- The promise not to demand the loan was a mere forbearance and not a legally binding promise.
-As the employee had already recovered to the full extent of his interest in the employment under the first policy (valued at £600 x 7 years), the second policy was void for lack of insurable interest.
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