In marine insurance, when must insurable interest exist?

In marine insurance, insurable interest must exist at the date of a loss. This means that the insured must have a legitimate stake in the subject matter of the insurance policy at the time a claim is made. Marine insurance is unique in that it does not require the insured to have an ongoing insurable interest throughout the duration of the policy; it is sufficient to hold that interest at the moment of loss.

This principle stems from the nature of marine contracts, where the risks are often time-specific. If a loss occurs, the insured's ability to claim is contingent on having a vested interest in the property affected by the loss at that time. If the insured had divested their interest earlier, they would not be entitled to make a claim. Hence, the focus is placed on the relationship between the insurable interest and the specific moment of loss, aligning with the principles of indemnity and preventing moral hazard.