"Insurable interest is the legal right to insure." (W.A. Dinsdale) Sec. 1 of the Insurance Code defines it as "every interest in property, whether real or personal, or any relation thereto, or liability in respect thereof, of such a nature that a contemplated peril might directly damnify the insured." This definition is applicable to property.
For life and health, it is provided under Sec. 10 of the Insurance Code that "every person has an insurable interest in the life and health:
- of himself, or his spouse and children;
- of any person on whom he depends, wholly or in part, for education or support or in whom he has a pecuniary interest;
- of any person under a legal obligation to him for the payment of money, or respecting property or services, of which death or illness might delay or prevent the performance; and,
- of any person upon whose life any estate or interest vested in him depends.
Insurance
A contract of indemnity or replacement; provides compensation or reimbursement for actual damage sustained by the insured.
Insurance Broker
A person who, for compensation, commission or other things of value, acts or aids in any manner in soliciting, negotiating or procuring the making of any insurance contract, or in placing risks or taking out insurance on behalf of an insured other than himself.
Jettison
Deliberate throwing overboard of cargo or parts of the ship. If done in time of peril, this is a general average sacrifice but is also recoverable as a direct claim on the policy.
Judicial Bond
Required in judicial proceedings, either civil or criminal, instituted in courts of justice or in quasi-judicial bodies, or as required by the Revised Rules of Court.
Larceny
Any act of stealing which does not fall under theft, robbery and burglary.
Marine Cargo Insurance
Insurance for the goods, property or merchandise carried by a vessel, aircraft or other means of conveyance for the purpose of earning freight; a form of financial protection for the manufacturer or importer as well as the banks. In case the shipment is lost before it arrives, the insurance company will reimburse them for their loss.
Marine Hull Insurance
"Insurance against risks connected with navigation to which a ship or other insurable interest in movable property may be exposed during a certain voyage or for a fixed period of time."
Merchandise Floater Insurance
Covers against direct physical loss or damage to the insured merchandise caused by "truck risks" perils, as well as robbery/hijacking, whilst in the course of in-land transit using declared conveyance/s.
Money, Securities & Payroll Robbery Insurance (MSPR)
Covers loss of money, securities and other negotiable instruments due to the perils of robbery, brigandage or burglary.
Moral Hazard
Subjective characteristic of the insured that increases the chance of loss (e.g., dishonest insureds who "cash in" on their insurance coverage through arson or fraudulent claims).
Motor Vehicle Insurance
Insurance against loss of or damage to a motor vehicle and against liability to passengers and/or third parties for death, bodily injury and/or property damage, arising from ownership of the motor vehicle
Open Policy
According to the Insurance Code, an open policy is one in which the value of the thing insured is not agreed upon, but is left to be ascertained in case of loss.
Ordinary Agent
Any person who, for compensation, solicits or obtains insurance on behalf of any insurance company; or transmits for a person other than himself an application for a policy or contract of insurance to or from such company; or offers or assumes to act in the negotiation of such insurance.
