DOUBLE INSURANCE

DOUBLE INSURANCE refers to the insurance of the same property or person more than one time by the insurer himself/herself. Double insurance has different implications for Life Insurance and General Insurance (fire Insurance , Marine Insurance , etc.) For instance , a person can get any number of Life Insurance policies of any amount. He/she will get pre-determined amount in case of his/her death during the period of policy/policies or on the maturity date of the policy whichever is earlier. It means a person can take the benefit of double insurance. On the another hand , in case of general insurance an insurer can get more than one insurance policy on the same property but in the situation of damage the loss incurred the incurred will be shared by all the policies taken and compensation will be paid on all the policies collectively which will not exceed the actual loss incurred.