On a broad evaluation of the laws in India, it can be said that the principle behind gambling and betting contract would fall within Section 30 of the Indian Contract Act, 1872 which treats a wagering contract as void.
To constitute a wagering contract there must be proof that the contract was entered into upon terms that the performance of the contract should not be demanded.
51) Thus, a person is not permitted to seek insurance on himself based on collusion with others when really the transaction is a mere disguise for a wagering contract.
The crux is whether the policy was a wagering contract at the time it became effective as a contract.
The blurring of wagering contracts (16) with insurance contracts became prevalent in eighteenth-century England.
The Sixth Circuit, however, dismissed the notion of a wagering contract
by determining that there was a valid life insurance contract under state law.
Such consent is persuasive, "further vindicat[ing] the public policy designed to prevent wagering contracts
on which the insurable interest rule is grounded" (Dou, Chem.
The public policy against wagering contracts
and use of life insurance policies as a means for speculation for profit on people's lives dictates that there must be a valid insurable interest in any issuance of a life insurance policy.