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The case of macaura vs northern assurance company limited?

Updated: 9/14/2023

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∙ 14y ago

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macaura owned a timber processing firm. he with other people later formed a company and macaura sold his firm to th

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Macaura v northern assurance co 1925 what is the fact and the decision and principal and the law and reason?

In this precedent, the owner of a timber company insured the timber in his own name, then incorporated the business. Not long after the incorporation, a fire broke out and destroyed the insured property. As such he tried to claim but was held to have no insurable interest in the property anymore: it belonged to the company which had a separate legal personality. This was despite the fact he was the sole shareholder and was also a creditor of the company to a large extent.

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