Insurable Interest in Marine insurance :

Marine Insurance Act specifically declares marine contracts without any insurable interest as wagering contracts which are void under Section 30 of the Indian Contract Act 1872. It is sufficient in marine insurance contracts that the insurable interest is present at the time of loss.

Insurable interest, in relation to a marine insurance, means the interest which the Policyholder has in the subject matter which has been insured – in such a way that the Policyholder will benefit if the insured property arrives safely or will be prejudiced in case there is a loss or damage to the insured property.

An insurer has insurable interest in the risk the insurer has assumed and therefore can reinsure the risks with a reinsurance company