Mr. Aakash contracted to build a ship for Mr. Bunny for ₹5,00,000. All the materials were to be supplied by Mr. Bunny. Can Mr. Aakash get all the materials insured for the period of construction ?

Principle of Insurable Interest: Insurable Interest means the assured must have an actual interest in the subject matter of insurance. Any person may said to have an interest in the subject matter of insurance who may be injured by the risks to which the subject matter is exposed. Insurable interest is a basic requirement of any contract of insurance whether life, fire, marine, etc. unless it can be and is, lawfully waived. As a general rule, this means that the party to the insurance contract who is insured or policy-holder must have a particular relationship with the subject matter of the insurance whether that be a life or property or a liability to which he might be exposed. The absence of the required relationship will render the contract illegal or void depending on the type of insurance. Yes, Mr. Aakash can get the materials insured because he has an insurable interest therein, as he would suffer financial loss on the destruction of the materials.