Assignment and pledge of a policy of insurance

Abstract

In general, this thesis purports to ascertain the true import of the expression "assignment and pledge of a policy of insurance" in relation to three kinds of policies, namely a life policy, a marine policy and an indemnity policy, both under Maltese law and English law. The issues under Maltese law, unlike under English law, at once seem difficult. Thus, while the provisions on assignment and pledge resulting from the civil code are of purely continental origin, the most important principles of which are outlined in the Introduction, the elements which make up a policy of insurance, in particular for the purpose of the present study, those elements which determine its transferability, are derived from the common law system. The most important elements of a policy of insurance will be briefly expounded in Chapter 1. In relation to the element of insurable interest, because of the enormous implications that element purports to have on the transfer of a policy of insurance, and also viewed as an aspect of illegality of the policy, it is necessary to deal with it in a separate chapter; Insurable Interest will be the subject of Chapter 2. However, different considerations apply in relation to the different types of policies referred to above. Therefore, it is necessary to deal with each type in turn. Life policies are dealt with in Chapter 3, marine policies are dealt with in Chapter 4, and indemnity policies form the subject of Chapter 5. However, in each case, we will be concerned with identifying certain potential controversies, like the proper subject-matter of a contract of assignment, notice which must be given to the debtor, object of a contract of pledge, creation of the pledge, the possible defences of the debtor etc.