Double Insurance - Definition - Law Dictionary Home Dictionary Definition double-insurance

Definition :

Double insurance takes place when the assured makes two or more insurances on the same subject, the same risk, and the same interest. The assured may recover the amount of his actual loss against any of the insurers, but nothing beyond this, and if he obtains full satisfaction from one of the assurers, the latter is entitled to contribution from the others. Excess of indemnity received by the assured is held by him in trust for the assurers. Double insurance is therefore entirely different from re-insurance, which is effected by the underwriter to secure himself from a loss. Double insurances are not prohibited by the law maritime unless fradulently made; see Arnould on Marine Insurance, 8th Edn. P. 430; the Marine Insurance Act, 1906, ss. 32, 80; Newby v. Reid, (1763) 1 W Bl 416.

Double insurance is prohibited under the (English) National Health Insurance, Old Age, and Widows, etc., (English) Contributory Pensions Act, 1936.