Given below are two statements

Statement I: In the case of Life Insurance, the insurable interest must be present in the person insured at the time when event happened.

Statement II: In the case of Fire Insurance, the insurable interest must be present in the object insured at the time when the policy is taken and the event has happened.

In light of the above statements, choose the correct answer from the options given below

Correct option is D

Statement I: In the case of Life Insurance, the insurable interest must be present in the person insured at the time when the event happened. This statement is false. In life insurance, the insurable interest must be present at the time of taking the insurance policy, not necessarily at the time when the event (such as death) happens. The insurable interest refers to a financial interest or relationship that the policyholder has in the life of the insured person. For example, a person can have an insurable interest in their own life, the life of their spouse, or the life of a dependent. Statement II: In the case of Fire Insurance, the insurable interest must be present in the object insured at the time when the policy is taken and the event has happened. This statement is true. In fire insurance, the insurable interest must be present in the object (such as a property) being insured at the time when the policy is taken and also at the time when the event (such as a fire) occurs. The policyholder must have a financial interest in the insured property to protect against potential losses caused by fire damage. Therefore, the correct answer is D. Statement I is false but Statement II is true.