I already have medical insurance of Rs 3 lakh with one insurer. I want to buy another policy from a different insurer. If I fall ill, can I claim from both the companies simultaneously?
In the event of a claim all policies contribute to the loss in proportion to the sum insured
I already have medical insurance of Rs 3 lakh with one insurer. I want to buy another policy from a different insurer. If I fall ill, can I claim from both the companies simultaneously?
Ketan Shah, Mumbai
All insurance policies other than life insurance and personal accident (death benefit) policies are issued with ‘contribution clause’. This means that if a person has more than one policy to cover the same risk, in the event of a claim, all these policies will contribute to the loss in proportion to the sum insured. This is why at the time of buying a new insurance you are required to furnish the details of your existing policies, if any. You may file the claim with either insurer or even with both simultaneously, but the overall compensation will be limited to the actual expenditure on treatment. This, however, will be subject to the total sum insured under both the policies.