Law:

Section:

(a) Insurance--- ---- "Insurable interest"---Meaning---Ownership was not the only criteria for determining insurable interest---Insurable interest could also be founded on contract. William v. Baltic Insurance Association of London (1924) 2 K.B. 282; Lucena v. Craufurd (1806) 2 Bos & P.N.R. 269, H.L at 302 and General Principles of Insurance Law by Ivamy, 1966, Edn., p. 19 rel. (b) Insurance--- ----Insurable interest---Plaintiff had taken possession of car in pursuance of agreement---Such car was insured with defendant---Car in question having been stolen, plaintiff claimed insurance amount from defendant---Evidence on record established that plaintiff had taken possession of car under agreement and thus, had an insurable interest-- -Plaintiff was entitled to insurance amount for which car in question, had been insured. JUDGMENT MAMOON KAZI, J.--This appeal calls in question the judgment passed by a learned Single Judge of this Court dated 27-5-1982 decreeing the respondent's suit for recovery of Rs.65,000 from the appellant. The respondent had filed a suit against the appellant for recovery of the aforesaid amount in respect of a claim of insurance sent to the appellant in connection with a stolen car, No.KAQ-4580. The said car had been mortgaged with the respondent for Rs.70,000. One of the conditions of the mortgage was that if the mortgager failed to redeem the car within one year, the same would become the property of the mortgage. The importer has executed a receipt for consideration as well as a letter of transfer in favour of the respondent. The respondent, claiming to have insurable interest in the said car, got the same insured with the appellant in the sum of Rs.50,000 and the Insurance Policy covering the risks effective from 22nd June, 1974 for one year was issued by the appellant. The policy was obtained covering risks for accident, fire, theft besides third party risks. In was the case of the respondent that on 13-3-1975, the said car vested in the respondent who became its absolute owner. The car was however, stolen on 10-6-1975. The theft was reported to the police and an intimation was sent to the Excise and Texation Office and also to the…

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