3 Insurable interest
The concept of insurable interest is found in the first Norwegian Marine Insurance Plan 1871 § 2, which states that any interest that anyone has in ships or in goods that are sent by sea, arriving in good shape and whose value may be calculated in money, may be insured. An insurance that does not cover an insurable interest is void. Gambling insurance is void. There was no reference to the interest being legal. It appears from the Commentary, that the concept of insurable interest was imported from the Harmburgerplan, but adjusted because the Hamburgerplan was legislation, whereas the Plan was a contract. It appears from the discussion in the Commentary that the main issue was whether the captain and crew could insure their “hyre”, or salary. The point was that insurance of salary could result in the captain and crew being less intent on performing their work where their whole interest was not tied to the vessel’s “happy arrival” at port.(1) Forhandlinger 1871 pp. 3–4. It was noted that in England, the captain, but not the crew, was allowed to insure his salary. The provision in § 2 ended after voting took place to prohibit insurance of salary for captain and crew.(2) Forhandlinger 1871 p. 5.
The provision for insurable interest was retained in the Plan 1881 § 2, but now with the requirement that the interest must be legal, and bringing in a new rule that the captain’s share of the vessel’s freight could be insured as part of his salary (“kaplaken”). The provision was further retained in the 1894 version,(3)Revideret almindelig norsk Søforsikringsplan September 1894 (1894 Plan) § 2. although after intense discussions on the insurability of the captain’ and crews’ salaries, because the prohibition against this was removed from the Maritime Code.(4) Forhandlinger 1894 pp. 5–11. In 1907 this prohibition was also deleted from the Plan, but the requirements that the interest must be legal and have an economic value, as well as the prohibition against gambling insurance, were all retained.(5)Norsk Sjøforsikringsplan 1907 (1907 Plan) § 1.
The provision is retained in NP 1930 § 2 (legal interest with economic value) and § 3 (gambling policies) although now in a more modern form. It conforms to the Nordic ICA 1930 § 35, and is also retained in NMIP 1964 §§ 5 and 6, although in a more modern version. The provision today simply states that a “contract concerning insurance which does not relate to any interest is void”, cf. NP 2023 Cl. 2-1.
The rules relating to this principle were not included in the Norwegian ICA 1989, but the prohibition of illegal interests and gambling policies followed from other rules. However, the requirements for what constitutes insurable interest still qualify as a fundamental insurance law principle and this has raised problems in modern insurance, both in legal aid insurance and in casualty insurance for buildings in the case of transfer of ownership.(6) Hans Jacob Bull and Trine-Lise Wilhelmsen, Forsikringsrett, 2 ed. 2024 (Bull/Wilhelmsen), p. 452 ff., in particular pp. 460–461.