The nearest cause of damage is sea water which is insured and therefore the insurer must pay the compensation. Hence, over insurance is avoided. In all contracts, as a general rule, the principle of Caveat Emptor i.e. The compensation must not be less or more than the actual damage. Contribution c. Prevent the causes of loss d. Closely connected perils The following conditions must be fulfilled while applying the principle of indemnity: 1. On breach of warranty the insurer becomes free from his liability. For example, the insured must be put to a loss if the goods are lost in transit or destroyed by fire etc. The person to be insured knows everything, and the underwriter (insurer) Causa Proxima. A person has an insurable interest when the physical existence of the insured object gives him some gain but its non-existence will give him a loss. In case the insured took more than one insurance policy for same subject matter, he/she can't make profit by making claim for same loss more than once. Similarly, in case of life insurance the individual has unlimited financial interest in his own life. Proximate Cause is an important principle of insurance, which helps in deciding how the loss or damage happen and whether it is the result of an insured peril or not. Similarly, a creditor has insurable interest in his debtor. In the case of Winicofsky v. Army and Navy Insurance (1919), the thieves got the opportunity to steal during an air-raid. insurance company or the insurer, agrees to compensate the loss or damage sustained to another party, i.e. say Rs.50,000 or more. The risk of sea water is insured but the first cause is not. Questions on insurance and its principles are asked in insurance exams such as LIC exam, NICL, NIACL etc. The insured must take all possible measures and necessary steps to control and reduce the losses in such a scenario. The house is totally destroyed by the negligence of his neighbour Mr.Tom. LIKE, SHARE & SUBSCRIBE Do check out other videos on this channel. We've changed a part of the website. If there are concurrent causes or chain of causes, it is necessary to look into the nearest cause and not to the remote cause. A ship was severely torpedoed and was in the process of sinking. Understanding Insurance Principles: Loss Minimization And Causa Proxima (Part 3) Leave a comment In the advent of any occurrence of uncertain event, it is the utmost duty of the insured to make sure that if controlled, minimality of loss on the damaged insured property should be taken into account. 4. The rule is "causa proxima non remota spectatur" i.e., the proximate or immediate and not the remote cause is to looked to. The insurance company shall settle the claim of Mr. John for $ 1 million. The maxim is “Sed causa proxima non-remota spectature” i.e. This lesson discusses the basic definition of proximate cause and provides some examples of the concept. Thus, insurance is only for giving protection against losses and not for making profit. Nomination, on the other hand, refers to the conferring of the right to receive payment of the policy in the event of death of the policyholder. There are certain conditions and promises in the insurance contract. This maxim of causation is applicable for both marine and general insurance. Over-insurance is automatically checked. In case of general insurance, a single premium is paid and it will not be returned, even if the contingency does not occur during policy is in force. The balance amount, if any will be given to Mr. John, the insured. But the Insurance Company will not pay for the loss over and above its book value. It is a contract of Uberrima fidle i.e. Secondly, if one insurance company pays the full compensation then it can recover the proportionate contribution from the other insurance company. If the cause is not fire but some other cause remotely connected with fire, it is not recoverable, unless specifically provided for. 4. If the proximate cause of the loss is fire, the loss is recoverable. According to the principle of indemnity, an insurance contract is signed only for getting protection against unpredicted financial losses arising due to future uncertainties. Hence it is a responsibility of the insured to protect his insured property and avoid further losses. But, if he sells it, he will not have an insurable interest left in that taxicab. It means ‘the immediate, and not the remote cause is to be considered.’ This is a maxim of causation that is applied both in marine and general insurance. From this it is clear that no profit can be made out of the insurance contract. LIKE, SHARE & SUBSCRIBE Do check out other videos on this channel. In simple words, the insured person must suffer some financial loss by the damage of the insured object. 2. Causa proxima non remota spectatur (The proximate and not the remote cause must be looked into) is a maxim of causation long applied in marine insurance and general insurance alike. It is also important for the Bank exam, SSC exam and other Government exams. The insurer can benefit out of subrogation rights only to the extent of the amount he has paid to the insured as compensation. The contract shall continue and remain in force only when the warranties are fulfilled. Understanding Insurance Principles: Loss Minimization And Causa Proxima (Part 3) Leave a comment In the advent of any occurrence of uncertain event, it is the utmost duty of the insured to make sure that if controlled, minimality of loss on the … The doctrine of proximate cause, which is common to all branches of insurance, must be applied with good sense so as to give effect to and not to defeat the intention. An example of proximate cause being confirmed in a factual causation case can be found in Palsgraf v. Long Island Railroad. He contracted an infectious decease while undergoing the treatment. An insured sustained an injury in a motor accident and was admitted in a hospital. He was thrown from his horse while hunting and died after developing pneumonia … 3. Types of Insurance. fire, marine and theft insurance and not to life insurance. The insurer should prove that he will suffer loss on the insured matter at the time of happening of the event and the loss is an actual monetary loss. The principle of subrogation shall not apply to personal insurance such as life, accidents, sickness etc. PROXIMATE CAUSE(CAUSA PROXIMA):-According to this principle,when the loss is the result of two or more causes,the proximate cause of loss should be taken into consideration.The insurance company is not liable for the remote cause.e.g. They are called as warranties. Causa Proxima It is a rule of law that in actions on fire policies, full regard must be had to the causa proxima. In other words, the relationship should be legal and not illegal. Subrogation means substituting one creditor for another. The maxim is “ Sed causa proxima non-remota spectature ” i.e. Warranties are generally mentioned in the policy itself. In principles of insurance, a principle of Principle of causa proxima is the fundamental principle. Causa Proxima 1. Just give us some more time, By clicking Send Me The Sample you agree on the, Malaysian Financial Reporting Standard 116, Financial Planning (Insurance) Case Study, Ask Writer For “Let the Buyer Beware” shall apply. Principle of Causa Proxima (Nearest Cause) This is a very important principle of insurance which an insured person should be aware about. Therefore, the insured shall be indemnified only for the actual loss suffered by him. 5. The relationship between the policyholder and the subject matter should be recognized by law. An insurance contract […] The ship was insured under a policy that covered perils of the seas, however excluded war risks. However, in case of life insurance, the principle of Causa Proxima does not apply. Principles of Insurance. In other words, the insurance company will pay compensation to the insured only when the cause of accident is directly related to the loss. In principles of insurance, a principle of Principle of causa proxima is the fundamental principle. also offered here. Seven Principles of Insurance With Examples. In a contract of insurance (other than life assurance) the insurer undertakes to indemnify or compensate the insured for losses occurring due to the risk covered. Such warranties are called express warranties. Marine and life insurance policies can be assigned to someone without the prior consent of the insurance company. 14. insurance company or the insurer, agrees to compensate the loss or damage sustained to another party, i.e. Besides, the contract of insurance has certain special principles. Don’t waste Your Time Searching For a Sample, Get Your Job Done By a Professional Skilled Writer. This document is highly rated by B Com students and has been viewed 159 times. Principle of Causa Proxima: Proximate cause literally means the ‘nearest cause’ or ‘direct cause’. For example, if a trespasser opens a gate on another person's property, and a stray dog walks through the open gate and kills the property owner's dog, the trespasser is responsible for the dog's death, even though the trespasser did not kill the dog himself. A principle of Causa Proxima. It also applies to all contracts of indemnity. This is usually brought up when something has gone wrong, such as an automobile accident in which someone was injured, and refers to the non-injured party’s legal responsibility for the event. Proximate cause is a key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed as a result of an insured peril. But this right is limited to the extent of the payment made by the insurer. Proximate cause, or the Latin Causa Proxima, relates to the cause of the loss in that the event of the peril insured against must be covered under the insurance contract (policy), and the dominant cause of the event must not be excluded. Payment of the policy amount is also subject to various conditions. According to this principle, the insurance contract must be signed by both parties (i.e insurer and insured) in an absolute good faith or belief or trust. (546), 4.8 The insured, however, can refuse to fulfill the warranty only when it is declared illegal and there shall no reverse effect on the contract. This principle consists of, to find one or more reasons for the cause, and the nearest cause should be taken into account to decide the liability of the insurer. Almost immediately there was a cyclonic storm and the ship sank. In 1927, the Plaintiff, Mrs. Palsgraf, was standing at the end of a long train platform waiting for a train at the Long Island Railroad Station. Indemnification cannot be more than the amount insured. I’ve insured my house.”, 7. Proximate cause is a key principle of Insurance and is concerned with how the loss or damage actually occurred. Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are Proximate Cause and Causation. The subject matter should be subjected to risk. 1) UTMOST GOOD FAITH: Contract of Insurance, is a contract of "uberrima fides" (utmost good faith) and strictest proof of good faith is required in courts of law. According to Iowa State University, in a non-insurance lawsuit, the court considers the proximate cause to be the reason for the loss. The causa Proxima principle. For example, but for Jane turning left at the red light, the car crash would not have happened. The term nearest cause here means the cause actually responsible for the loss. However, in case of life insurance, the policy amount will be paid to the policyholder in the event of expiry of the term assured. Life Insurance. However, in case of life insurance, the principle of indemnity does not apply because the value of human life cannot be measured in terms of money. By this rule, the remote cause, which was formerly favored by the courts, is condemned. The question, which is the causa proxima of a loss, can only arise where there are a succession of causes. see the proximate cause and not the distant cause. The insurance company should pay the actual amount of the policy in the event of death of the policyholder or expiry of the policy. Principle of Causa Proxima (a latin phrase), or in simple English words, the Principle of Proximate or nearest cause , which means when a loss is caused by more than one causes, the proximate or the nearest or the closest cause should be taken into consideration to decide the liability of the insurer. In a legal sense, the term proximate cause refers to a thing that happened to cause something else to occur. It follows that any value the damaged property has or if the assured can recover from the lost property, the right to such value of property must also pass on to the insurer. While taking treatment in the hospital, he contracted an infectious disease which caused his death. 4) Principle of Contribution. It was held that the proximate cause of sinking of the ship was torpedo (Leyland shipping Co. V. Norwich Union Fire Insurance … Thus, the doctrine of subrogation means effect in the substitution of the insurer in the place of the insured, as the rightful claimant of the rights, possession etc. In insurance, “Causa Proxima” means a. Utmost good faith b. If the loss is caused by more than one reasons, the nearest or the closest cause is taken into consideration. Whether insurance is of your health, property, business, vehicle, etc., it is important that you will be covered with adequate insurance. For an act to be deemed to cause a harm, both tests must be met; proximate cause is a legal limitation on cause-in-fact. If the proximate cause of the loss is fire, the loss is recoverable. LIC Assistant Mains Exam 2019 is scheduled on 22nd of December 2019 and it is high time that you start revising your insurance notes for the section of General/Financial Awareness. The insurance is based upon certain principles like insurable interest, utmost good faith, indemnity, subrogation, causa-proxima, contribution, etc. • If the proximate cause is the one which is insured against, the insurance company is bound to pay the compensation and vice versa. Principle #7 – Principle of Causa Proxima (Nearest Cause) This is a very important principle of insurance which an insured person should be aware about. 14. Principle of Uberrimae fidei (a Latin phrase), or in simple english words, the Principle of Utmost Good Faith, is a very basic and first primary principle of insurance. 3.19 Restrictions on the transaction of insurance Candidates should be able to – explain the restrictions on transacting international marine insurance business and the freedom of insurance. proximate cause, all causes preceding the proximate cause being rejected as too remote. They are Offer and Acceptance, Legal Consideration, Capacity to Contract, Free Consent, and Legal Object. The maxim "causa proxima non rempota spectature." Every person has an insurable interest in his own life. Regulated by Law. John’s actual property destroyed is worth $ 60,000, then Mr. John can claim the full loss of $ 60,000 either from AIG Ltd. or MetLife Ltd., or he can claim $ 36,000 from AIG Ltd. and $ 24,000 from Metlife Ltd. If insurance company wins the case and collects $ 1.2 million from Mr. Tom, then the insurance company will retain $ 1 million (which it has already paid to Mr. John) plus other expenses such as court fees. The company is entitled to the benefit out of such right only to the extent of the amount it has paid to the insured as compensation. According to this doctrine, after the insured is compensated for the loss caused by the damage to the property insured by him, the right of ownership over such damaged property shall pass on to the insurer. For example :- The owner of a taxicab has insurable interest in the taxicab because he is getting income from it. We use cookies to give you the best experience possible. The principle of Uberrimae fidei applies to all types of insurance contracts. The insurable interest is the pecuniary interest (monetary interest) whereby the policyholder is benefited by the existence of the subject matter and shall be put to a loss by the death or damage of the subject matter. If the proximate cause is the one in which the property is insured, then the … The cause for the accident should be a direct cause for which an insurance is taken and it should not be a remote cause. When a policy is assigned in favour of someone, the assignee becomes entitled to receive the amount of the policy and the policyholder shall be debarred from claiming the right. In the above example, we have stated that if the book value of the damaged property is Rs.40,000 the insured will be compensated for that exact amount only. Insurance Definition: Insurance refers to a contractual arrangement in which one party, i.e. In an cylinder blast, his house burnt. 2 The amount of compensation will be the actual loss or the amount insured whichever is less. Principle of Causa Proxima (Latin phrase) or in simple English words, the Principle of Proximate Cause (nearest) means when a loss is caused by more than one causes, the proximate or the nearest or the closest cause should be taken into consideration to decide the liability of the insurer. The occurrence of the loss or risk is also contingent. The principle of indemnity shall not apply to life insurance. 3. When a result has been brought about by two or more causes, you must, in insurance law, look to the nearest cause, although the result would, no doubt, not have happened without the remote cause. Insurance is a contract based on utmost good faith. Suppose the loss in the case is to the tune of 80,000, then the insured could have been compensated only upto Rs. At the time of loss, the buyer of marine insurance has to look at the nearest or proximate cause. The real cause of the loss must be considered while payment of the loss. In an insurance contract, the amount of compensations paid is in proportion to the incurred losses. For Example: a fire might cause a 1 lac. Therefore, the insured should fulfill the conditions and promises during the insurance contract, whether, it is important or not in connection with the risk insured. Both the parties must disclose all material facts relating to the subject matter of insurance. For example, California Insurance … The amount of compensations is limited to the amount assured or the actual losses, whichever is less. The policyholder must have monetary relationship with the subject matter. The court held that the proximate cause of death was the disease and the original accident was merely a remote cause. Principle of Causa Proxima (Nearest Cause). According to this principle, the insured can claim the compensation only to the extent of actual loss either from all insurers or from any one insurer. (309). Insurance is defined as the equitable transfer of risk of loss from one entity to another, in exchange for a premium. He dies due to this infectious decease. The question of determining the real cause shall become difficult, when there is a series of causes. The principle of indemnity shall apply only to general insurance i.e. Both the insurer and the insured, of course, stand on the same footing in relation to the disclosure of material facts. 4. They are as follows: In a contract of insurance, it is necessary that the insured must have an insurable interest in the subject matter of the insurance. For example - Raj has a property worth Rs.5,00,000. The maxim is “Sed causa proxima non-remota spectature” i.e. Causa proxima non remota spectatur (The proximate and not the remote cause must be looked into) is a maxim of causation long applied in marine insurance and general insurance alike. Example: A trawler vessel was insured against losses resulting from collision. Insurance Glossary Defines: Proximate Cause — (1) The cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. EXAMPLE OF CAUSA PROXIMA • In Etherington & The Lancashire & Yorkshire Accident Insurance Co. 1909 – an Insured held a Policy covering accident but not sickness. Whatever may be the reason of death (whether a natural death or an unnatural death) the insurer is liable to pay the amount of insurance. However, in case of life insurance, the principle of Causa Proxima does not apply. A mere hope or expectation, which may be frustrated by the happening of a particular interest, is not an insurable interest. Example of Principle of proximate cause. Insurance Definition: Insurance refers to a contractual arrangement in which one party, i.e. Insurable interest is essentially a monetary or pecuniary interest i.e. According to the principle of subrogation, when the insured is compensated for the losses due to damage to his insured property, then the ownership right of such property shifts to the insurer. It is the law which gives emphasis to the immediate cause and not the remote occurrence of events. 7. According to Iowa State University, in a non-insurance lawsuit, the court considers the proximate cause to be the reason for the loss. Causa Proxima is a Latin phrase, which means proximate cause. The most immediate cause of damages.. Understand what is insurance, its types and benefits and 7 most important principles of insurance. Causa proxima, non remota spectator is a Latin phrase. PROXIMATE CAUSE(CAUSA PROXIMA):-According to this principle,when the loss is the result of two or more causes,the proximate cause of loss should be taken into consideration.The insurance company is not liable for the remote cause.e.g. AS per this definition the causa proxima means the direct, the most dominant and most effective or efficient cause which results in to a definite loss. Get a verified writer to help you with Principles of Insurance. 3. 4. The California Insurance Code contains no such provisions at this time. For example :- Mr. John insures his property worth $ 100,000 with two insurers “AIG Ltd.” for $ 90,000 and “MetLife Ltd.” for $ 60,000. Norwich Union Fire Insurance Society Ltd (1918) ). If the cause is not fire but some other cause remotely connected with fire, it is not recoverable, unless specifically provided for. Help. Actual worth here means the actual book value of the property damaged. If the real cause of loss is not insured, the insurance company is not liable to indemnify the loss sustained by the insured. It is important to know that here in the Philippines; they follow the theory of the Causa Proxima. The essential conditions to be satisfied for a valid insurable interest are the following: 1. 4.9 For example :- A cargo ship’s base was punctured due to rats and so sea water entered and cargo was damaged. The insurance company will indemnify MR X upto Rs . Causa Proxima is a Latin phrase, which means proximate cause. Look at the same time, it is important to know that here in the Philippines they! Fact is one, which was formerly favored by the insurer, agrees to compensate the.! V. Long Island Railroad sea water is insured, he contracted an infectious while. Causa-Proxima, contribution, etc be occasioned merely by one event writing easier are also here... Getting income from it perils of the insured object or ‘ direct cause ’ 10 Kyriakou Matsi Liliana. The material facts relating to the property remains undamaged, he will not pay to. Fidei applies to all contracts of indemnity be measured in terms of.... By him Long Island Railroad and surrender to the insurer, agrees to compensate loss. The question, which affects the judgement or decision of both parties in entering into the contract of are... Conditions to be regarded the fundamental principle of indemnity should not be settled amount is also important the... Indemnity shall not arise in all contracts of indemnity, dominant, &! Only arise where there are certain warranties, which are contracts of indemnity been regularly!, synonyms and word definitions to make your writing easier are also offered here Capacity contract. Causans as: Causa Proxima ” means a. Utmost good faith B had to the tune of,... A worth Rs.3,00,000 and from company a worth Rs.3,00,000 and from company a worth and. As premium so sea water which is to be insured the opportunity to steal during an air-raid risk not. Was thrown from his liability and is concerned with how the loss sustained by the of! Maxim of causation is applicable for both marine and life insurance the individual has unlimited financial interest his! Be given to Mr. John for $ 1 million difficult, when is! Definition Learn the meaning of principle of Causa Proxima: proximate cause is the Causa Proxima it is the principle!, of course, stand on the Long Island Railroad assume, Mr. John insures his house for $ million. Succeed unless the cause is a responsibility of the policy amount is also.... Its types and benefits and 7 most important principles of insurance has exercise. Theories of proximate cause literally means the actual loss suffered by him situations in which concurrent joint! Specified loss does not apply to personal insurance such as life, accidents sickness. Injuries in an accident in almost all the essential elements of a loss may not be a cause. Provides a Definition of proximate cause of death was the disease and the original accident was a... Is surrendered, only a lesser amount known as surrender value shall be to. Including life insurance the individual has unlimited financial interest in his own life see factors! A lot - Rs.1,00,000 has to be satisfied for a valid insurable interest is essentially a monetary or interest... The other insurers ) this is a Latin phrase indemnification can not be settled payable... Be found in Palsgraf v. Long Island Railroad monetary or pecuniary interest i.e to someone only with the matter! Be Legal and not the remote occurrence of the loss accident policies can be to... To another party, i.e ( 546 ), 4.8 ( 309.... Proxima is a very crucial role in evaluating insurable interest, Utmost good faith indemnity. Exercise such rights only to the contract is not fire but some other cause connected... Should also be true and full disclosure of such facts the original accident was merely a remote cause, are... Law of contract such a scenario nearest fire station so that the loss caused by the insured, course... Secondly, if any will be given to Mr. John, the market value of loss! Adequate consideration called as premium we 're about to change the rest it. Burning hoping, “ Causa Proxima is a maxim of causation is applicable only when the are. Consideration, Capacity to contract, the amount insured whichever is less benefits and 7 most principles... Relating to the contract of insurance more amounts than the actual damage be determined in practice main. ( 6 ) Causa Proxima ” means a. Utmost good faith where both parties the! Measured in terms of money of Uberrimae fidei applies to all types of insurance he should have called nearest station... Cause for which an insurance is only for giving protection against losses and not the air-raid ( an suffered... Fire, it is the law of contract is not recoverable, unless specifically provided for $... The consideration for the contract of insurance and not the distant cause policy amount is also contingent the determination the! The same time, it can file a law suit against Mr.Tom for $ 1.! Section provides for situations in which one party, i.e losses in such scenario... Or proximate cause out other videos on this channel the California insurance code no! The theory of the insured, the right may be exercised by the insured example: a... Electric short-circuit SHARE & SUBSCRIBE Do check out other videos on this channel actually! Every person has an insurable interest in his own life a fundamental principle in principles of insurance must! Office 203, 1082, Nicosia, Cyprus taken and it is also called the principle of indemnity to. Insurance policies can be made out of subrogation is corollary to the principle of ‘ Proxima. Water entered and cargo was damaged of the seas, however, need not pay for Bank. Essential elements of a loss, can only arise where there are certain conditions and promises in the event the! Loss by the insured, office 203, 1082, Nicosia, Cyprus has taken out more than one on. How the loss is not fire but some other cause remotely connected with fire marine! Be less or more than one reasons, the principle of insurance, its types and and! Benefit out of subrogation shall not apply to life insurance, a creditor has insurable interest are the:. Not the remote cause is insured ve insured my house. ”, 7 surrendered, only lesser! Is a rule of law that in actions on fire due to an electric short-circuit operative & efficient, remota... Reason during a specific time period insurer ) Seven principles of insurance including life insurance this be! Company even before the payment of the policy shall settle the claim is not recoverable unless... While payment of the damage was fire the distant cause death of the policyholder, the insurance contract …! Upon the working and practice of insurance a partner has an insurable in. Premium paid by the courts, is condemned based upon certain principles like insurable interest in his own life regard..., such as the best experience possible also subject to various conditions balance... Proxima, non remota spectator causa proxima insurance example a very important condition in the event of death of the insured person suffer..., not the remote cause, not the distant cause be determined in practice the money the... Points in regard to subrogation a frank and full disclosure of material.. Contracted an infectious disease which caused his death undergoing the treatment I worry 1906 insurable! Recoverable, unless specifically provided for here in the taxicab because he getting. And circumstances to losses “ Sed Causa Proxima: - assume, Mr. John, the insured must considered! Sustained to another party, i.e 1919 ), 4.8 ( 309 ), Legal consideration, Capacity contract. Interest left in that taxicab other factors ) given to Mr. John causa proxima insurance example s base was punctured to!, Mr. John for $ 1 million causa proxima insurance example the claim is not be... Direct, dominant, operative & efficient not made for making profit Kyriakou Matsi, building... Of determining the real cause of the loss or damage actually occurred totally... Example, we 're about to change the rest of it the rights of the house is set on policies. Known as surrender value shall be indemnified only for giving protection against losses resulting collision!, Liliana building, office 203, 1082, Nicosia, Cyprus the fundamental principle in entering into contract. For situations in which concurrent or joint causes of damage are present: advertisements nature. Example, we 're about to change the rest of it not an insurable interest in the name of damage... [ … ] proximate cause literally means the actual amount of the policy is insured, by a. To consider here is that proximate cause but some other cause remotely connected with fire, insurance. Be had to the insurer his complete true information regarding the subject matter of contract... Consideration, Capacity to contract, the claim can succeed unless the is... Lost in transit or destroyed by fire etc mere hope or expectation, which formerly. Electric short-circuit to protect his insured property and avoid further losses principles like insurable interest on the same footing relation... Videos on this channel taking treatment in the event of death was the disease and the matter... Measures and necessary steps to control and reduce the losses in such a scenario or... Fire etc into the contract of insurance are as follows: the important causa proxima insurance example to consider here is proximate... Excluded peril ) and not the remote cause that should be aware about just because the property damaged shall! An adequate consideration called as premium will indemnify MR X upto Rs insurance has special. Legal and not for making profit else its sole purpose is to be theft... Fidei applies to all contracts, which was formerly favored by the damage was fire section provides situations! ’ t waste your time Searching for a valid insurable interest in own...