I have two health insurance policies of Rs 1 lakh each. If I incur hospitalisation expenses of more than Rs 1 lakh, should I file a claim with both companies?
All insurance policies other than life insurance & personal accident policies are issued with a contribution clause
I have two health insurance policies of Rs 1 lakh each. If I incur hospitalisation expenses of more than Rs 1 lakh, should I file a claim with both companies?
Vibhuti Shah, Vadodra
All insurance policies other than life insurance and personal accident (death benefit) policies are issued with what is known as a ‘contribution clause’. This means that if one 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 the proportion of the sum insured. That is why at the time of buying a new insurance policy you are required to fill in the details of your existing policies, if any. In your case, you can file your claim with any of the two insurance companies, irrespective of the amount of claim. This is subject, however, to the overall sum insured of Rs 2 lakh under both the policies, which will contribute equally to the loss.