DOUBLE INSURANCE

When same risk and same subject matter is insured with more then one insurance policies, is called double insurance. In other words there can be one and single insurance of a risk or more then one insurance for the same risk by the same insurer or different insurance. The later is known as “double insurance” or “multiple insurance”.

             If the sum insured exceeds the original value of the subject matter that is called over-insurance. The over-insurance is lawful if there is no express condition is mentioned expressly in the insurance contract.

   EX-

             “A” the owner of a house insured his house against fire for RS-3 lac with ‘X’ and RS-1 lac with ‘Y’ this is called double insurance.

   Features of Double Insurance-

1.      More then one policies are obtained for the same.

2.      All the policies related to the same risk.

3.      The insured has equal insurable interest in the subject matter.

4.      The insured is same.

Recovery of loss-

           The insured can enter into contract of insurance with any number of insurance. When the loss occurs, the insured can claim only the loss amount. The insured cannot claim the sum more then the actual loss.