What is Double insurance?

   When the same subject matter is insured with two or  more  insurers to cover the same risks, it is called double insurance. It is a case of over insurance.

   for eg: A person insure his building for 1,00,000  with two insurance companies. If there is total loss he will not get  rs 1,00,000 from each insurance company

                                                   Whenever there is double insurance, the principal of contribution becomes applicable. According to this principal, in the event of loss the insured will get only the actual amount of loss. In other words, each insurance company will contribute only a proportionate amount of actual loss.