Insurance Principles

To receive insurance, insurance companies have several principles :

Insurable interest
Insurable interest, means that customers have an interest that can be insured. This arises from the financial relationship which the law is recognized.

Relationship can arise because:
Law
According to the customs law, a person or property owned by someone other than the person, also owned by his family. Thus, a father can buy insurance for the child or property belonging to his son, as well as vice versa.
Act
For example, according to law, every passenger transportation company responsible will be required when there is a passenger in the accident. Therefore, the transportation company is allowed, even obligated, to buy accident insurance for passengers.
Contract
For example, in a building contract, the contractor charged the responsibility to complete the building. Therefore, the contractor may be buying protection contractor all risk insurance.

People said to have insurable interest in the object when the insured person suffers financial loss in case case of natural objects on it. When the case of natural objects on the insured and that person does not have a financial interest over an object, then that person is not entitled to receive compensation.