LML4805
assignmen
Assignment 2 Semester 2 2025
UNIQUE CODE:624621
Detailed Solutions, References & Explanations
DUE DATE: 01 Sept 2025
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning,
comparison and reference purpose,
Not to duplicate, reproduce and/or misrepresent the
contents of this document as your own work,
Fully accept the consequences should you plagiarise
or misuse this document.
Disclaimer
Extreme care has been used to create this
document, however the contents are provided “as
is” without any representations or warranties,
express or implied. The author assumes no
liability as a result of reliance and use of the
contents of this document. This document is to
be used for comparison, research and reference
purposes ONLY. No part of this document may be
reproduced, resold or transmitted in any form or
by any means.
, 0688120934
PREVIEW
Question 1: Opinion Against the Use of Insurable Interest
The doctrine of insurable interest has long been used as a requirement for the validity
of insurance contracts in South African law. The principle requires that the insured must
have a direct, financial, or legally recognised interest in the subject matter of insurance
at the time of the loss. Although historically justified as a means to prevent wagering
contracts, there are strong arguments against retaining it as a requirement in modern
insurance law.
Firstly, the doctrine is outdated. South African courts have recognised that the law has
moved away from its original English law roots where insurable interest was seen as
essential to distinguish valid insurance contracts from gambling contracts.1 The
Gambling Act 7 of 2004 and the general principles of contract law are already
sufficient to prevent wagering agreements, making the requirement of insurable interest
redundant.2
1
Burchell J Principles of Insurance Law (Juta 2020).
2
Reinecke MFB General Principles of Insurance Law 2 ed (LexisNexis 2017). Disclaimer
Extreme care has been used to create this document, however the contents are provided “as is”
without any representations or warranties, express or implied. The author assumes no liability as
a result of reliance and use of the contents of this document. This document is to be used for
comparison, research and reference purposes ONLY. No part of this document may be
reproduced, resold or transmitted in any form or by any means.
assignmen
Assignment 2 Semester 2 2025
UNIQUE CODE:624621
Detailed Solutions, References & Explanations
DUE DATE: 01 Sept 2025
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning,
comparison and reference purpose,
Not to duplicate, reproduce and/or misrepresent the
contents of this document as your own work,
Fully accept the consequences should you plagiarise
or misuse this document.
Disclaimer
Extreme care has been used to create this
document, however the contents are provided “as
is” without any representations or warranties,
express or implied. The author assumes no
liability as a result of reliance and use of the
contents of this document. This document is to
be used for comparison, research and reference
purposes ONLY. No part of this document may be
reproduced, resold or transmitted in any form or
by any means.
, 0688120934
PREVIEW
Question 1: Opinion Against the Use of Insurable Interest
The doctrine of insurable interest has long been used as a requirement for the validity
of insurance contracts in South African law. The principle requires that the insured must
have a direct, financial, or legally recognised interest in the subject matter of insurance
at the time of the loss. Although historically justified as a means to prevent wagering
contracts, there are strong arguments against retaining it as a requirement in modern
insurance law.
Firstly, the doctrine is outdated. South African courts have recognised that the law has
moved away from its original English law roots where insurable interest was seen as
essential to distinguish valid insurance contracts from gambling contracts.1 The
Gambling Act 7 of 2004 and the general principles of contract law are already
sufficient to prevent wagering agreements, making the requirement of insurable interest
redundant.2
1
Burchell J Principles of Insurance Law (Juta 2020).
2
Reinecke MFB General Principles of Insurance Law 2 ed (LexisNexis 2017). Disclaimer
Extreme care has been used to create this document, however the contents are provided “as is”
without any representations or warranties, express or implied. The author assumes no liability as
a result of reliance and use of the contents of this document. This document is to be used for
comparison, research and reference purposes ONLY. No part of this document may be
reproduced, resold or transmitted in any form or by any means.
