Good day Valued Broker,
After receiving some queries from our brokers regarding the uncertainties surrounding the subject of insurable interest and IUM’s policy in this regard, we would like to provide all our brokers with a form of reassurance in explaining IUM’s transparent views on this topic going forward.
From an underwriting and claims perspective, IUM will favourably consider all new claims as of 1 February 2018 on the insured’s behalf where an asset or object is insured in the name of a policyholder’s director, shareholder, principal, partner or owner at the time of loss. This consideration will not extend to direct or indirect family members or employees of the insured.
In the event that vehicle(s) on the policy is either leased, rented or subject to other forms of agreement(s), then IUM will only accept that the insured has an insurable interest if the insured stands to suffer a direct, measurable financial loss if the event (against which the insurance cover was bought) does occur.
IUM will consider claims if the details of the true owner(s) have not been disclosed if IUM would have accepted the insurance of the true owner on similar terms and conditions which do not differ to any great degree to those arranged.
Please remember that if your office and/or the insured is unsure whether a specific entity/person should be noted on the insurance policy, please contact our offices immediately to obtain the correct advice in order to ensure that the client is properly covered at all times.
As insurable interest can be applied to an endless amount of insurance scenarios, we confirm that each claim is and will be assessed on its own prevailing merits and circumstances.
If you have any queries, please do not hesitate to contact us.