What condition must be met to purchase marine insurance?

To successfully purchase marine insurance, a crucial condition that must be met is that the applicant must have an insurable interest in the property to be insured. Insurable interest means that the insured has a legitimate stake in the property, such that they would suffer a financial loss if the property were damaged or lost. This legal and financial connection is essential for the validity and enforceability of the insurance contract.

Without insurable interest, the insurance contract could be deemed a wagering agreement, which is not permissible. This principle protects both the insurer and the insured by ensuring that insurance is used for its intended purpose: to provide a safety net against potential losses rather than as a speculative venture.

While it is true that marine insurance typically covers risks associated with waterborne vessels and movable property, the primary condition remains the existence of insurable interest. In the context of marine insurance, having property afloat or that can be transported over water does not negate the requirement to have a financial interest in it. Thus, while other aspects like the property being on water or movable are relevant to marine insurance, they do not stand on their own as a condition necessary to obtain the insurance.