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Double Insurance, Principles of Insurance Video Lecture | Principles of Insurance - B Com

49 videos|51 docs|14 tests

FAQs on Double Insurance, Principles of Insurance Video Lecture - Principles of Insurance - B Com

1. What is double insurance?
Double insurance refers to a situation where a person insures the same risk with multiple insurance companies. In such cases, the insured can potentially receive a higher claim amount than the actual loss suffered.
2. What are the principles of insurance?
The principles of insurance include: 1. Principle of Utmost Good Faith: Both the insured and the insurer must disclose all relevant information truthfully and honestly. 2. Principle of Insurable Interest: The insured must have a financial interest in the subject matter of the insurance policy. 3. Principle of Indemnity: The insured should be compensated for the actual loss suffered, not more or less. 4. Principle of Contribution: If the same risk is insured with multiple insurers, they will contribute proportionately to the claim settlement. 5. Principle of Subrogation: After compensating the insured, the insurer acquires the right to pursue legal actions against third parties responsible for the loss.
3. What are the implications of double insurance?
Double insurance can have the following implications: - The insured may receive a higher claim amount than the actual loss suffered. - It may lead to disputes between the insurance companies involved in claim settlement. - The insured may face difficulties in coordinating with multiple insurers during the claim process. - Premium costs may increase due to the additional coverage obtained from multiple insurance policies. - Each insurer may apply their own policy terms and conditions, leading to variations in coverage.
4. Can I intentionally seek double insurance for financial gain?
Intentionally seeking double insurance for financial gain is generally considered unethical and may be against the principles of insurance. It is important to disclose all existing insurance coverage to the insurance companies involved to ensure transparency and avoid potential legal issues.
5. How can I prevent unintentional double insurance?
To prevent unintentional double insurance, it is essential to: - Maintain a record of all existing insurance policies and their coverage. - Inform new insurers about any existing coverage to avoid overlapping. - Regularly review and update insurance policies to ensure they meet current needs and avoid duplication. - Seek guidance from insurance professionals or brokers to ensure comprehensive coverage without unnecessary duplication.
49 videos|51 docs|14 tests

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