What is the double clause in insurance?

Asked by: Louie Koss III  |  Last update: October 24, 2025
Score: 4.9/5 (60 votes)

Double indemnity is a clause or provision in a life insurance or accident policy whereby the company agrees to pay the stated multiple (e.g., double, triple) of the face amount in the contract in cases of death caused by accidental means.

What is an example of a double indemnity clause?

Example: John has a life insurance policy with a double indemnity clause. If he dies in an accident, his beneficiary will receive twice the amount of the policy's face value. For instance, if the policy's face value is $100,000, the beneficiary will receive $200,000 in case of accidental death.

What is a double insurance example?

Example of double insurance

Person A has double insurance. She has two supplementary hospital insurance plans with two different health insurers that cover the same risk, plus two accident insurance plans.

How does double coverage insurance work?

Double coverage often means you're paying for redundant coverage. first. The other plan can pick up the tab for anything not covered, but it won't pay anything toward the primary plan's deductible. If both plans have deductibles, you'll have to pay both before coverage kicks in.

What is the double accident benefit?

DAB in LIC stands for Double Accident Benefit and can be attached to the base policy as a rider. This additional benefit can be purchased to avail of extra financial cover on the death of the policyholder as a result of an accident.

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What happens when two cars in an accident have the same insurance?

If both drivers involved in an accident have the same insurance company, the insurance company will typically handle the claim in a similar manner to any other accident. The insurance company will investigate the circumstances of the accident and determine liability based on the policy terms and the evidence available.

What is double claim?

DOUBLE CLAIMS . The Management Company on behalf of the Fund shall not be entitled to recover from the PLD Party under this Agreement more than once in respect of the same damage suffered.

What are the cons of being double insured?

Cons and Considerations:
  • Complex Management: Involves more paperwork, potential claim delays, and higher premiums.
  • Coordination of Benefits: Primary insurance pays first, and secondary covers remaining eligible costs, requiring thorough understanding and communication.

Does insurance double after an accident?

An accident in California nearly doubles full coverage insurance rates. In comparison, an accident in Pennsylvania only increases rates by 23%.

Is double coverage illegal?

Having dual coverage is perfectly legal. But you must coordinate your two policies correctly to ensure you cover your medical expenses compliantly. If you're new to dual insurance, you've come to the right place!

What are the effects of double insurance?

Overlapping coverage: Both plans provide similar coverage, and the benefits largely overlap. The services covered by both plans are redundant, and you are not likely to use the additional services provided by the second plan. As a result, having two plans in such cases results in unnecessary premium expenses.

Can two insurance companies pay on the same claim?

- You don't get to choose which insurer will pay a certain claim. However, if the first insurer doesn't cover a certain treatment, or covers it only partially, you can then submit the remainder of the claim to your secondary insurer for payment, assuming the treatment is covered under the second plan."

What is double billing insurance?

In a double billing scheme, a provider bills multiple times for the same medical services. Sometimes providers bill the same party (e.g., the government) multiple times for the same services. To avoid detection, they can alter the date of the service, its description, or the name of the patient or provider.

What is covered under double indemnity?

Double indemnity refers to payment by a life insurance policy of two times the face value when death results from an accident (e.g., an auto accident) as opposed to a health problem (e.g., cardiac arrest).

Why are indemnity clauses bad?

Indemnity clauses are most commonly misused for two reasons: That if a risk is not covered by an indemnity, a party will not have adequate means of recovering its loss if the risk materialises. That an indemnity clause has advantages over a claim for damages such that if they can be used, they should be used.

What is the main idea of double indemnity?

The title refers to a "double indemnity" clause which doubles life insurance payouts when death occurs in a statistically rare manner. The film was nominated for seven Academy Awards. Widely regarded as a classic, it is often cited as having set the standard for film noir and as one of the greatest films of all time.

Will my insurance go up if I get hit by an uninsured driver?

That's right, California has enacted a proposition designed to protect innocent motorists from the predatory tactics of insurance carriers. California's Proposition 103 contains clauses that forbid insurance companies from raising rates after an individual makes an uninsured motorist claim.

How does insurance work when you hit another car?

Auto liability coverage is required in nearly every state. If you're found at fault in an auto accident, liability coverage can pay for damage to other vehicles, damage to objects, bodily injuries to other drivers and their passengers, and lawsuits if you're sued due to an accident.

How can I lower my car insurance after an accident?

How to find cheap car insurance after an accident
  1. Raising your deductible, which is the amount reduced from a potential claim check from comprehensive or collision insurance. ...
  2. Adding discounts to your policy. ...
  3. Improving your credit.

Can I get a refund if I was double insured?

If you have double insurance coverage for the same person and vehicle, you might qualify for a prorated refund. Decide which insurance you're keeping, tell the other company you were double insured, and ask for your premiums back.

What is double insurance in simple terms?

Double insurance refers to the method of getting insurance of same subject matter with more than one insurer or with same insurer under different policies. This means that one can get insurance policies on a subject matter more than its value. Double insurance is possible in all types of insurance contracts.

Is it illegal to have two car insurance policies?

Although no laws prohibit you from purchasing two auto policies from two different companies, an insurer will not allow you to purchase two policies on the same car. If you have an auto accident, filing two claims with two different insurance providers constitutes insurance fraud even with two auto policies.

What is the escape clause in double insurance?

Exclusions/Restrictions/Escape clauses – this excludes liability where another policy covers the same loss; Rateable proportion clauses – this states the insurer will only pay its share of the loss; Excess clauses – this states the policy will only pay sums above the amount covered by the other policy; and.

Can you be double covered for accident insurance?

Filing a claim on two different auto policies for the same vehicular repairs or attempting to get your medical bills covered twice by separate health insurers would be considered fraudulent double dipping. Insurance providers have mechanisms in place to cross-check claims data to identify duplicates.

What makes a claim invalid?

We can test for invalidity by assuming that all the premises are true and seeing whether it is still possible for the conclusion to be false. If this is possible, the argument is invalid.