LIFE INSURANCE WITHOUT THE PRINCIPLE OF INSURABLE INTEREST

Abstract

          Pursuant to section 863 of Thai Civil and Commercial Code, a contract of insurance is not binding on the parties unless the assured has an interest in the event insured against. Such Thai insurance law limits the ability to be bound to the life insurance contract. Hence, this research aims to study and analyze 1). the problems and the obstacles of the life insurance according to the principle of the insurable interest 2). the information regarding the life insurance without the principle of the insurable interest and 3). the model of the life insurance without the principle of the insurable interest. The findings of the aforesaid purposes shall minimize such limitation, and modify the insurance law to become more suitable to the modern society which people are more interested in having the life insurance. This also enhance the capacity to remedy more individuals and families in the society, in accordance with the goal of the life insurance, to compensate for the damages caused by the decease of the family member.

          According to the study, the principle of consent has been adopted in the insurance laws of various foreign nations, such as Japan, France, Malaysia, Federal Republic of Germany, and the Federation of Malaysia, in order to expand the opportunity to provide the life insurance, responding to the growing demand of the life insurance in the society. Therefore, the research proposes that there should be the amendment of the Civil and Commercial Code to include the principle of consent in Thai insurance law, so that despite the principle of the insurable interest, a person shall have the ability to be bound to the life insurance of others upon the attainment of the consent of such person more when the insured receives the consent of the person insured in the Civil and Commercial Code. With the addition of section 863 on consent to insured another person’s life insurance.