Analysis of the Criteria, Effects, and Efficiency of Insurable Interest in Iran's Legal System

In Iran’s legal system, insurable interest is a basic requirement of a valid insurance contract in which there is no considerable literature about it. Therefore, the present investigation considers the legal requirements of insurable interest with a comparative approach and also proceeds to assess these requirements. Thus, on the one hand, the obtaining rule of insurable interest in personal insurances and, on the other, the meaning of insurable interest in indemnity insurances have been studied. Also, due to the relationship between insurable interest and public policy and according to the articles (12) and (23) of Iran’s insurance law, the performance guarantee of lack of insurable interest has been discussed. Furthermore, by the legislative philosophy of insurable interest, the efficiency of this doctrine in reducing the risk of moral hazard has been mentioned. In the end, social desirability as the criterion consent of insured for life insurance, the scrapping insurable interest in liability insurances and insufficient efficacy of the insurable interest doctrine against the moral hazard risk are cited as the most important conclusions of this study.