From The Concept Of "insurable Interest"

Our legal system is deeply influenced by Japanese law and both of them fall within the civil law system. Therefore, the thesis tends to be based on the legal theory of German Insurance Contract Law and starts with insurance interest at the very core thereof to approach whether the provisions on Insurance Law are appropriate. The thesis covers two parts as follows:Part one is a brief statement of insurance interest. Because the thesis starts with the insurance interest, it introduces and illustrates the history of the theories on insurance interest firstly and then comes to the following three functions of insurance interest as a conclusion:First, distinguishing insurance conduct with the economic interest from gambling with the character of speculationSecond, refraining moral riskThird, limiting the compensation damages to avoid anyone being unjustly enriched in the insured eventFrom the introduction and illustration above, we know that the object insured is insurance interest. The reverse side of interest is damage, and the object of insurance is to compensate the damage. Therefore, insured property and the relevant interest or the life and body of the insurant are merely the subject matters of insurance rather than the object insured.Part two is the examination on the provisions in Insurance Law in operation. This part covers five sections as follows:Section one details that insurance policy holder and the insurant should hold insurance interest in the object insured. In the theory of insurance, the most important purpose of insurance is to disperse the risk and compensate damages. In accordance with the provisions under section21(2) of Insurance Law, the insurant is the person whose property, body or life is insured under the insurance contract and who is entitled...