Double Insurance

Question 1

When is there over insurance?

Answer 1

There is over insurance when the insured takes out an insurance over the property insured in an amount which is in excess of the value of his insurable interest.

Question 1

When is there double insurance?

Answer 1

A double insurance exists where the same person is insured by several insurers separately in respect to the same subject matter and interest.

This does not apply to life insurance.

Question 2

When is there over insurance by double insurance?

Answer 2

Over insurance by double insurance exists when there are two or more policies on the same adventure and interest or any part of it, and the sums insured exceed the insurable interest value in the case of an unvalued policy or the value fixed by the policy in the case of a valued policy.

Question 3

What is the rule if an insurance policy prohibits additional insurance without the insurer’s consent?

Answer 3

If an insurance policy prohibits additional insurance on the property insured without the insurer’s consent, such provision being valid and reasonable, a violation by the insured avoids the policy.

Question 4

What are the requirements for there to be a double insurance?

Answer 4

(1) The person insured is the same
(2) Two or more insurers ensuring separately
(3) The subject matter is the same
(4) The interest insured is also the same
(5) The risk or peril insured against it is the same