Jasnoor wishes to arrange insurance policies in her own name covering the following: 

• A luxury watch that Jasnoor found in the street, the owner of which is yet to be traced. 

• The life of Jasnoor's eldest daughter, Kaya, who is to take over the family business when she completes her degree course at university. 

• A sports car owned by Joseph, a friend of Jasnoor's. The sports car is being used by Jasnoor while Joseph is on holiday. 

• The life of Graham, Jasnoor's part-time cleaner. When Jasnoor applies to the insurer for the insurance policies, she mistakenly tells the insurer that Graham, the part-time cleaner, is 60 years old when he is in fact 70 years old. In order to keep the insurance policy premium as low as possible, Jasnoor deliberately concealed that the sports car has been heavily modified.

(a) Identify, with justification, whether Jasnoor has an insurable interest in each of the following: (i) The luxury watch. (4) (ii) The life of Kaya. (4) (iii) The sports car. (4) (iv) The life of Graham. (4) 

(b) Discuss the potential affect of the mistake regarding the age of Jasnoor's part-time cleaner on the validity of the life insurance policy. (6) 

(c) Discuss the potential effect of the concealed modifications on the validity of the insurance policy for the sports car. Refer to one statute in support of your discussion.

Answer rating: 100% (QA)

a i Jasnoor does not have an insurable interest in the luxury watch found in the street In order to have an insurable interest one must have a legal o... View the full answer