Author(s): Ngoe Kamadje Albert

Abstract: Human existence is shrouded with a plethora of uncertainties which may be connected with the time of happening of an event or its happening at all. While these uncertainties subsist, life must go on. Following this, the CIMA Code has provided for the purchase of life assurance to cover financial hardship after the death of a breadwinner. However, for a life assurance contract to be valid, the policyholder must possess insurable interest in the life insured. Despite its importance in preventing gambling and reducing moral hazard in life assurance business, it is ineffective and inefficient under the CIMA Code. This papers aims at assessing the effectiveness of insurable interest in life assurance contracts under the CIMA code and the reality in Cameroon. By way of doctrinal research methodology, this paper reveals that although insurable interest in life assurance is statute driven, its applicability is ineffective since so many of its intricacies and lacunae are left to the court for interpretation which of course give rise to several undesired interpretations. It is therefore imperative for the CIMA Legislator to undertake reforms on the identified ambiguous provisions and fill in the lacunae in the Code so as to ensure the effectiveness of insurable interest as a condition for the validity of life policies.

Pages: 35-43 | Views: 580 | Downloads: 256

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