What are the features of double insurance?
Features of Double insurance
The risk covered in all the policies is the same. The risk in all the policies is of the same period. The insured has equal insurable interest in the subject matter. The policies can be obtained either from the same insurer or from different insurers.
What is the use of double insurance?
Double Insurance or multiple insurances is the method of getting the same risk or the same subject matter insured with more than one insurance company or with the same insurance company but by two different policies.
What is double insurance called?
Secondary insurance: once your primary insurance has paid its share, the remaining bill goes to your “secondary” insurance, if you have more than one health plan. Your secondary insurance may cover part or all of the remaining cost.
What is double insurance India?
(1) Where two or more policies are effected by or on behalf of the assured on the same adventure and interest or any part thereof, and the sums insured exceed the indemnity allowed by this Act, the assured is said to be over-insured by double insurance.
Is double insurance prohibited?
Although the law does not forbid double or multiple insurance, the law protects against fraudulent acts that may arise because of it. … The law also allows insurance companies to explicitly include an “Other Insurance Clause” in the insurance contract to prohibit taking of another insurance policy.
What type of insurance are affected as double insurance?
“Where two or more policies are effected by or on behalf of the assured on the same adventure and interest or any part thereof, and the sums insured exceed the indemnity allowed by this Act, the assured is said to be over-insured by double insurance”.
What is meant by over insurance?
Over-insurance can be described as having excess insurance coverage/policies that covers the same risk or having insurance cover in excess (more than) of the value of the possible loss that the insured can experience.
What is the advantage of insurance?
Advantages of Insurance. Insurance provides economic and finanicial protection to the insured against the unexpected losses in consideration of nominal amount called premium. It provides financial protection to the nominee in case of the pre-matured death of insured.