Wednesday, July 24, 2013

Social security, Social welfare and insurable interest

It may well be argued as to how life insurance cover is provided to individuals and groups (example: insurance of toddy tappers or IRDP beneficiaries or landless agricultural labours group life insurance) by social organizations and even by government. Well, these are situations where ‘social welfare’ becomes the object and the insurable interest. In all insurance contracts of this type (i) the life cover is strictly limited to small sums that would not motivate a beneficiary to desire death of the insured, and (ii) the social organization or the government that purchases or provides for the insurance cover does not become the beneficiary. They do not take away the death claim; it is always given to the dependents of the life assured. This is a new dimension to the concept, where the welfare of the individual, family or society becomes the interest of the purchaser and provider of insurance.
                                                              

Key words:

Insurable interest
Social welfare


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