Double Insurance and Reinsurance
Double insurance and Reinsurance Double insurance Double insurance takes place when an individual or any company secures coverage for a specific property through multiple insurers or by holding multiple policies from the same insurer. Explanation in simple words: - Basic knowledge on insurance Ø the policy holder/ proposer/ insured/ assured - [the person who takes insurance policy for himself or his property]. Ø The policy giver/proposed/insurer/ assurer – [the insurance company or the agent of the insurance company who offers insurance policy]. Now, normally the policy holder insures his subject matter from any one insurance company. But if the insured, insures his same subject matter [i.e., himself or his property] to more than one insurance company it is called double insurance. Example: If a person named ‘RAHUL’ takes insurance policy of his car from 3 different insurance company of 1 lakh each. ...