The features of Double Insurance?
Double insurance denotes insurance of same subject matter with two different companies or with the same company under two different policies. Double insurance is possible in case of indemnity contract like fire, marine and property insurance. Double insurance policy is adopted where the financial position of the insurer is doubtful.
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The following are some of the broad features of double insurance:
- Insurance on the subject matter is effected with two or more insurance companies.
- A person may get two or more policies and can claim the amount of all these policies.
- In case of life insurance, more than one policy can be effected and the amount of all these policies can be claimed on all these policies at the time of death.
- The insured cannot recover more than the actual loss.