Cap. 16 Art. 1712AObject of a life insurance contract.

(1) A contract of life insurance may be stipulated over the life of the policyholder or that of a third party in relation to which the policyholder has an insurable interest, which is lawful, at the commencement of the contract.

*The provisions of this Title shall have effect in relation to contracts of insurance entered into after the coming into force of this Title (15th August, 2005) and to relevant subsequent legal transactions done under or in relation to contracts of insurance existing on such date. Nothing in the said Title shall affect the validity of any contract of insurance entered into prior to such date or anything done thereunder or in relation thereto until such date.

(2) For the purposes of this article:

(a) a person has an insurable interest in his own life and in the life of his spouse;

(b) a parent of a person who has not attained the age of eighteen years, and a guardian of such person has an insurable interest in the life of that person;

(c) a person who is likely to suffer financial loss as a result of the death of some other person has an insurable interest in the life of that other person;

(d) a body corporate has an insurable interest in the life of an officer, shareholder or employee of the body corporate and a partnership has an insurable interest in the life of a partner or employee of the partnership;

(e) an employer has an insurable interest in the life of his employee and an employee has an insurable interest in the life of his employer;

(f) a person has an insurable interest in the life of a person on whom he depends, either wholly or partly, for maintenance and support;

(g) for the purposes of this title, the term "life insurance" shall include any contract of insurance in terms of which any benefit is payable on death.

(3) Subject to the interest being lawful, the agreement by an insurer to enter into a contract of life insurance over the life of a person other than the policyholder shall be sufficient evidence of the fact that the assured has an insurable interest in the life of the life assured.

(4) Except in the case referred to in sub-article (2)(c), where a person has an insurable interest in the life of another person it shall not be necessary for the policyholder to prove that he has suffered any loss or that the loss suffered bears any relationship to the sum insured.