The reason behind this principle is this interest was devised as a means to average out the risk of loss. No one can be said to suffer a loss from the loss of a life or property in which he has interest. Without the prerequisite of insurable interest, the nature of the contract of insurance can hardly be distinguished from gambling and betting, and thereby the whole purpose of insurance is defeated. Can you really say that a contract made between an insurer and me to the effect that if Muhammad Ali dies, I will be paid 200.000 baht, is a contract of
Insurance rather that a wager?