What is double insurance? Let's try to figure it out.
In the field of personal and property insurance in life and work, it is quite common. It is often also called repeated or additional, but these concepts require differentiation.
In property insurance
Double insurance is a situation in which the same property is insured in the same time period in several organizations.
The total sum insured under the two agreements cannot exceed the value of the property. 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. At the same time, 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 organizations will exceed the total amount of damage received by the insured.
Thus, we can say that the main features of double insurance are:
- Property is insured by several insurers at once.
- Terms of insurance are the same.
- Insured events are identical.
- The objects of insurance are the same.
Often this type of insurance is used by people to obtain illegal profits, so it is strictly prohibited at the legislative level.
In cases where 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, against theft.
Thus, the law allows you to insure the same property in different insurance organizations only in cases where the amount of the expected 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 interact with only one insurer. In the event that a second insurance agreement has been concluded for the same object, it is recognized as invalid. Such a ban is connected with the fact that it not only leads to illegal profits, but alsocan push the insured to deliberately 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 can receive 4 million rubles. Not everyone can resist this temptation.
Coinsurance, reinsurance and double insurance are all synonyms meaning the same thing.
Fixing a fact in documents
To avoid re-insurance situations, the regulations that govern the insurance process explain: policyholders (persons insuring certain property) are required to inform insurers (companies providing insurance protection services) all data on insurance contracts that were signed by them with other insurance companies.
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 cases of double insurance are discovered, it disclaims the obligation to compensate for compensation in the event of an insured event under this agreement.
Insured events arising from double insurance
In cases where a person draws up a double insurance contract repeatedly, or in another way it turns out that it was made in order to obtain illegal income, the insurance companyhas the right to initiate legal proceedings to declare all insurance agreements invalid.
In such a case, the insurance company receives the insurance premium until the end of the period when the fraudulent insurance situation was discovered.
But it is usually very difficult to prove that the policyholder's intentions were dishonest. Often, such situations arise without intent on the part of the insured and commit illegal actions.
A double insurance situation can be resolved in two ways:
- The case of double insurance is discovered after the occurrence of the insured event.
- Double insurance is detected long before the insured event occurs.
If double insurance is revealed before the occurrence of an insured event, then the total insurance amount is 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 insured client has the right to demand that the insured value of the property be reduced under the agreement. This right extends to the contract that was signed later. The insurance value is reduced by reviewing and reducing the amount of the insurance premium.
That is, the insured reduces his costs by paying the insurance company an insurance premium in a smaller amount than previously expected.
Ifthe insurance agreement has terminated, the premium that was previously paid (even if it was paid in advance) is not 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 may be proportionally reduced.
In the event 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 organization 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 important that each insurance organization is liable under its agreement within the sum insured specified in it. That is, the client has the right to receive the entire payment from one insurer, and other organizations divide the 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 is not used in the field of personal insurance, 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 he alth simultaneously in several organizations. In this case, he hasthe legal right to receive payments from each insurer in the event of illness.
For personal insurance, it is not required to report the availability of insurance with another company, since such a requirement applies only to property insurance.
The amount insured for personal insurance is set exclusively by agreement between the insurer and the insured (for example, surviving to 55 years). In this case, a citizen has the right to insure the same risk again with another insurer. In this case, it will not be possible to exceed the cost of insurance, just like violating the rights of one of the insurers.
Thus, additional insurance means insurance of a property object in various organizations for an amount that does not exceed the insured value of the insured object. Supplemental insurance is also referred to as coinsurance and is permitted by law.
Double insurance in the Civil Code of the Russian Federation means insurance of a property object in various organizations for an amount exceeding the insured value of the insured object. Double insurance is also often referred to as reinsurance. Such insurance is prohibited by law.
If re-insurance is carried out, then this fact must be stipulated in the process of concluding a second contract. Double insurance is not considered, during which the property object is insured against different risks. Also, personalinsurance.