Wager Policy
A wager policy is an insurance policy that is made when the insured has no insurable interest. This is a kind of insurance policy in which the insured does not have an insurable interest in the- subject matter of insurance and in which the underwriter dispenses with any proof of interest. It is a contract purporting to be one of insurance but which does not qualify as such for want of sufficient insurable interest. It is not a valid policy in the eye of law. Such contracts being against the policy of the law are void.
“Wager policy is a marine insurance policy covering property in which the insured does not possess an insurable interest capable of legal proof.”
This policy is also called gambling policy. It is a method of gambling by betting as to what numbers will be drawn in a lottery; as, to play policy. This is a kind of insurance policy in which the insured does not have an insurable interest in the subject matter of insurance and in which the underwriter dispenses with any proof of interest. It is a policy that shows on the face of it that the contract it embodies is a pretended insurance, founded on an ideal risk, where the insured has no interest in anything insured.
In wager policies, the persons for whose use the issue have no pecuniary interest in the life insured. It is a marine insurance policy covering property in which the insured does not possess an insurable interest capable of legal proof. It is an engagement upon interest or no interest; the performance of the voyage in a reasonable time and manner, and not the bare existence of the ship or cargo, is the object of insurance. It is usually in such terms as to preclude the necessity of inquiring into the interest of the insured; as, “interest or no interest,” or, “without further proof of interest than the policy.”
