What is double insurance? Let's try to figure it out.
In the field of personal and property insurance in life and in work, it is quite common. It is often referred to as repeated or additional, but these concepts require differentiation.
In the field of property insurance
Double insurance is a situation in which there is insurance of the same property in the same time period in several organizations.
In this case, the total insurance amount under two agreements may not exceed the value of the property. The legislation allows such insurance freely.
This situation occurs when property is insured against the same risk, and in the same period at once in several insurance institutions. Moreover, under all agreements, the amount of insurance payments exceeds the insured value of the property. That is, if an insured event occurs, the compensation amount paid by insurance companies will exceed the total amount of damage that was received by the insured.
Key features
Thus, we can say that the main signs of dual insurance are:
- Property is insured by several insurers at once.
- Insurance terms are the same.
- Insured events are identical.
- The objects of insurance are the same.
Often this type of insurance is used by people in order to obtain illegal profits, therefore it is strictly prohibited at the legislative level.
In cases where the property is insured against various risks, the situation is not classified as double insurance, which means it is permitted by law. For example, in one insurance company, the TV is insured against death as a result of a fire, and in another company from theft.
Thus, the law allows you to insure the same property in different insurance organizations only in cases where the amount of alleged compensation does not exceed the amount of damage caused.
It is worth noting that double insurance is a service that is completely prohibited in some countries. That is, the policyholder for one property can only interact with one insurer. In the event that the conclusion of the second insurance agreement on the same object has occurred, then it is recognized as invalid. A similar ban is connected with the fact that this not only leads to the receipt of illegal profits, but can also push the insured to intentionally provoke an insured event. For example, a citizen has a house, the cost of which is 1 million rubles. He interacts with five insurers and concludes agreements for 800 thousand rubles with each of them. If an insured event occurs, he may receive 4 million rubles. Not everyone can resist such a temptation.
Co-insurance, reinsurance and dual insurance are all synonyms meaning the same thing.
Documentation of fact
In order to avoid re-insurance situations, the regulations that govern the insurance process explain: policyholders (persons who insure certain property) are obligated to inform insurers (companies providing insurance protection services) of all data on insurance contracts that they signed with others insurance organizations.
Information received from the policyholder must be recorded in the application. However, it is also often recorded in the text of the insurance agreement itself. In addition, the insurance company indicates that if double insurance cases are detected, it will not be obligated to indemnify in the event of an insured event under this contract.
Double insurance events
In cases where a person draws up a double insurance contract repeatedly, or it turns out in another way that it was made in order to obtain illegal income, the insurance company has the right to initiate legal proceedings in order to invalidate all insurance agreements.
In such a case, the insurance company receives an insurance premium until the end of the period when a unfair insurance situation was discovered.
But to prove that the policyholder’s intentions were dishonest is usually very difficult. Often, such situations arise without the intention of the insured and commit unlawful actions.
Probable Outcomes
The double insurance situation can be resolved in two ways:
- The case of double insurance is detected after the occurrence of the insured event.
- Double insurance is revealed long before the insured event.
If double insurance is revealed before the insured event occurs, then the total insurance amount shall be brought into line with the insured value of the property under all agreements. In other words, if the value of the insured property is 10 thousand rubles, then in all insurance agreements it will become equal to 10 thousand rubles.
In such a case, the client-insurer has the right to demand that the insured value of the property by agreement be reduced. This right applies to the contract that was signed later. The insurance value is reduced by reviewing and reducing the size of the insurance premium.
That is, the insurer reduces its costs by paying the insurance company an insurance premium in a smaller amount than previously expected.
If the insurance agreement has expired, the premium that was previously paid (even if it was paid in advance) will not be returned to the client. If the agreements were concluded at the same time and the policyholder agreed to this, then the amount of insurance payments under the agreements can be proportionally reduced.
Upon occurrence of an insured event
The situation when cases of double property insurance are detected upon the occurrence of an insured event is more complicated. In this case, the insurance company is obliged to pay compensation in such a way that the total amount of compensation does not exceed the cost of the damage incurred.
It is also important that each insurance organization is liable under its agreement within the limits of the insurance amount indicated in it. That is, the client has the right to receive the entire payment from one insurer, and other organizations share compensation among themselves and give their part to the organization that made the payment to the client.
Is double life insurance allowed?
In the field of personal insurance
As a rule, such a scheme in the field of personal insurance is not used, but it is not prohibited by law.
In such a case, each insurer carries out its activities autonomously and fulfills its own obligations to the insured independently of anyone.
For example, a citizen insures his health at the same time in several organizations. In this case, he has a legal right to receive payments from each insurer in case of illness.
In case of personal insurance, it is not required to inform about the availability of insurance in another company, since such a requirement applies exclusively to property insurance.
The amount of insurance for personal insurance is determined exclusively by agreement between the insurer and the policyholder (for example, surviving to 55 years). In this case, a citizen has the right to insure the same risk repeatedly with another insurer. In this case, it will not be possible to exceed the cost of insurance, as well as to violate the rights of one of the insurers.
conclusions
Thus, by additional insurance is meant insurance of a property in various organizations for an amount that does not exceed the insured value of the insured object. Complementary insurance is also called co-insurance and is permitted by law.
Double insurance in the Civil Code of the Russian Federation means insurance of a property in various organizations for an amount exceeding the insurance value of the insured object. Double insurance is also often called reinsurance. Such insurance is prohibited by law.
If repeated insurance is carried out, then this fact should be agreed upon in the process of concluding the second contract. Insurance is not considered double, in the process of which the property is insured against various risks. Also, double insurance and co-insurance are not considered personal insurance.