5/8/2011 Macaura v Northern Assurance Co Insurance law principle:insured must have insurable interest in the property insured. Company law principle(separate legal entity): M,as shareholder,did not have any proprietary interest in the timber (and hence no insurable interest) not as a creditor either Co owned the timber Contract law principle:co did not enter into any insurance contract. 15 Lee v Lee's Air Farming Ltd [1961]AC 12 (Privy Council) Lee owned 2,999 of 3,000 shares in C0. ·Sole director of co. Salaried employee of co. Killed while flying for work. Could Lee's widow claim compensation under the New Zealand Workers'Compensation Act? Held:yes.Lee was an employee of the co (a separate entity). 16 85/8/2011 8 Macaura v Northern Assurance Co • Insurance law principle: insured must have insurable interest in the property insured. • Company law principle (separate legal entity):  M, as shareholder, did not have any proprietary interest in the timber (and hence no insurable interest)  not as a creditor either  Co owned the timber • Contract law principle: co did not enter into any insurance contract. 15 Lee v Lee’s Air Farming Ltd [1961] AC 12 (Privy Council) • Lee owned 2,999 of 3,000 shares in co. • Sole director of co. • Salaried employee of co. • Killed while flying for work. • Could Lee’s widow claim compensation under the New Zealand Workers’ Compensation Act? • Held: yes. Lee was an employee of the co (a separate entity). 16