A cautionary tale…

Insurable Interest

If you have had the misfortune to suffer a burglary at your home which has resulted in the attendance of a loss adjuster you will have been asked ‘do own the stolen items’ followed by do you have a receipt and where did you purchase the items.

These questions are all designed to established ‘insurable interest’ i.e. have you suffered a loss as a result of it being stolen.

Seems straight forward, what if an item had previously been stolen or obtained via illegal means, the law prevents you benefiting from illegal acts so you would not be able to claim for this item.

But I am not a thief!!

Geismar v Sun Alliance (1977) – this case arose from a claim for theft of various items from Geismar’s home which included a number of items purchased abroad and brought into the country without declaring them for the payment of customs duty. The court held that it was against the public interest for Geismar to profit from his deliberate breach of the law and therefore he could not claim for those items.

We all know somebody who has purchased an item (normally jewellery) from some exotic spot at a fraction of its cost in the UK. Did they walk through the red sector and declare the item on return to the UK, I think not, will they be upset if the item is stolen and they are unable to claim, I think so.