At what time must insurable interest first exist for a private motor insurance policy to be enforceable by law?

For a private motor insurance policy to be enforceable by law, insurable interest must first exist at the time the policy goes on risk. Insurable interest is a fundamental principle in insurance that ensures the policyholder stands to suffer a financial loss if the insured event occurs. Specifically for motor insurance, this means that the insured must have an interest in the vehicle at the point when the policy is active and providing coverage.

At the time the policy goes on risk, the insurer assumes the responsibility for the insured vehicle, meaning that at this moment, the insured must have the necessary insurable interest. If the policyholder does not have an insurable interest at this point, the policy could be deemed void, and the insurer would have grounds to deny claims related to that policy.

Insurable interest does not need to exist at the time of the quotation or when the proposal form is completed; instead, these are preliminary steps in the insurance process. Having insurable interest at the time of a claim is not sufficient either. The key point is to ensure the policyholder has a legitimate financial stake in the insured item at the point when insurance coverage is active, which reinforces the integrity of the insurance contract.