Mr. Anupam is the owner of the Commercial Building. He Insured that Building on 1st May, 2023. He sold that building to Mr. Kartik on 25th September, 2023. The fire took place on 21st January, 2024. As the Insurance Docu

The relevant insurance principle that determines who will receive the policy monies is the principle of insurable interest. Insurable interest stipulates that the policyholder must have a legitimate financial interest in the insured property at the time of purchasing the insurance policy and at the time of the loss. Mr. Anupam no longer owned the building, as he sold it to Mr. Kartik on 25th September, 2023. Therefore, he no longer has insurable interest in the property at the time of the loss, as the fire took place on 21st January, 2024. Mr. Kartik did not own the building at the time the insurance policy was purchased. Therefore, he did not have insurable interest in the property when the policy was initiated. Mr. Kartik, in order to claim the monies from insurance company should endorse the policy in his favour after the building being bought by him and before the loss.