Which among the following correctly defines the Principle of Insurable Interest in an insurance contract?
1
It defines that the insurance company should know the extent loss that may occur in case of any event.
2
It defines that the insured should understand the contract of insurance properly before signing the papers.
3
A person is said to have insurable interest in something when loss or damage to that thing would cause loss to the person.
4
It defines that the insurance company and the insured should have a good working relationship during the tenure of the policy.
5
It defines that any insurance company has interest in providing insurance cover but the insured should take an informed decision only in this regard.