DESTINI BANGSAKU (LEGAL DISCOURSE)

•          A policy of insurance, being a chose in action, is prima facie freely assignable. •          Any assignment of the policy does not transfer to the assignee rights other than those arising under the policy itself •          Thus, if the policy is voidable due to the negligence of the assignor’s broker, the assignment of the policy does not also assign any right against the broker. •          Conditions for valid assignment: 1.     The consent of the insurer must be obtained 2.     To avoid problems of insurable interest, the assignment of the policy & its underlying subject matter must be contemporaneous 3.     The assignment must be in proper form Consent of the Insurer •          The willingness of equity to permit assignment ...

ASSIGNMENT Different forms of assignment 1. Assignment of the subject matter of the policy   -eg.the sale of a property. 2.   Assignment of the policy itself. -eg fire insurance policy 3. Assignment of the proceeds of the policy itself. - The right to recover under it A)   Assignment of the subject matter of the policy •          Where the insured voluntarily disposes of his entire interest in the subject matter insured under a policy, •          whether by sale or gift, •          it is clear from the common law indemnity principle that the insured will be unable to present a claim under the policy on the happening of an insured peril, •            as he cannot suffer any loss & has no insurable interest •          If the subject matter is:    ...